Desperate for advice on debts

[mrssmith2014]

Hi All you lovely people

Really long story short, I am a newly single mum with a young children (my ex suffered a psychotic breakdown), couldn't afford the family home so had to move out. I have managed to secure benefits to help me through this period (I am on maternity leave so nothing really coming in) but I cannot afford to pay my debts. I stopped paying as soon as I new I was in trouble financially and took care of the roof over our heads and food etc.

Now we are more settled I know I need to deal with this but I don't know the best way to go about this without shooting myself in the foot and making it worse.

I have 2 loans (both of which we used on the family home and my partner was paying from his salary... stupid I know but he earned 50k+ just didn't see this coming...)

Nationwide £5k 2010 - with KPR debt collect threatening legal action
Tesco £12k 2012 - default notice recd

And 3 credit cards

Barclays (was egg) £8k 2006 - Mercers debt collect making weekly calls to my place of work even though they have been told I am on maternity leave
Barclays £8k 2012 - As Above
MBNA (was virgin) £5k 2009 - default notice recd

I dont know if what I should be saying to them or if I should be sending them 'prove it' letters or CCA requests?

Even when I do go back to work in december I don't know that I will be able to afford the repayments - I am working part time and without my partners salary to cover nursery fees I dont think there will be much, if any, disposable income to go on these debts.

I don't really mind too much about my credit file (have accepted this is probably unsalvageable) but I want to avoid bailiffs and being made bankrupt as well as I am a member of the AAT and ACCA and understand that I would no longer be able to practice as an accountant if I am declared bankrupt (ironic that I manage and advise on other peoples finances but have managed to fail so catastrophically at looking after my own....I guess I just never saw this coming)

Hopefully this is not a permanent situation as I hope to get back together with my ex when all is well again but honestly I have no idea how long that will take.

Also I don't know if it will help at all to mention when writing to my creditors but I have been diagnosed with post natal depression and PTSD and have recently been put on high dose anti depressants and am under the care of the local mental health unit receiving weekly sessions. So as you can imagine I am finding it hard to deal with anything at the moment.... I don't know if creditors will find my situation relevant or not, from what I can gather on these forums they are a bit heartless :-(

Any help or advice that anyone can provide would be most appreciated - I am truly lost at the moment and just cannot deal with this....

Thankyou for taking the time to read this

[PAWS]

Re: Desperate for advice on debts

Hello Mrssmith.
I am afraid I am not smart enough to help but someone will be along soon with a bit of advice. In the meantime here is a hug!:hug:

[theGobbyOne]

Re: Desperate for advice on debts

Hi the debt agencies should be informed that you are in a vulnerable position as am sure that if you have mental health problems OR are a single parent you are classed as vulnerable group......I know this to be true of bailiffs but not sure if this is the case with debt agencies..............am sure someone will come along and advise you..............please try not to worry which is easier said than done............it can and will be sorted.
When I was being chased for debts some rang my place of work I informed the agencies that they did not have my consent to do this and they stopped calling my employer.

[mrssmith2014]

Re: Desperate for advice on debts

Thanks guys for your kind words - I would really like to know if I should send them CCA requests before entering further communication with them as this might buy me some time, or will it just make things worse?

Please can someone advise what is the best thing to do?

[Debt Camel]

Re: Desperate for advice on debts

Your creditors should be informed and should take notice of your mental health problems. See the Lending Standards code http://www.lendingstandardsboard.org...endingcode.pdf para 241-252 and the MALG's Mental Health Awareness Guidelines nore http://www.malg.org.uk/dmhdocuments/...nal%202009.pdf.

They refer to the DMHEF evidence statement. Depending on what you want to do about the debts, it might be a good idea to get one of these. It has to be requested by a Debt Advisor or Social Worker or similar, ask your local Mental Health Unit if they can organise it, if not you could go to your local Citizens Advice Bureau if . Annoyingly some doctors charge for completing these and it also takes some time.

In the meanwhile, you should certainly refer to your mental health problems in all communications with creditorsa and their DCAs. I suggest something like:

"I have been diagnosed with post natal depression and Post Traumatic Stress Disorder and have recently been put on high dose anti depressants and am under the care of the local mental health unit receiving weekly sessions. I attach copes of [prescriptions, letters from doctor / social worker / hospital etc , anything in writing that is evidence of your current mental health). This is making it difficult for me to manage my current finanical difficulties."

I think you should reconsider the bankruptcy option. You have a stack of debts and the more recent ones are unlikely to be amenable to prove it / CCA challenges. As a single parent working part-time, you aren't going to be able to clear these within any reasonable timescale.

Have a read of the ACCA's guidelines for members on bankruptcy - http://www2.accaglobal.com/documents/financial_difficulties.pdf. -
In making the decision whether to allow the individual to remain a member, or be readmitted to membership, the
Committee will consider the following;
• Does the member’s record at ACCA show any current or historical complaints or disciplinary findings?
• Is the individual eligible in accordance with relevant regulations, satisfying the relevant factors regarding
character and suitability?
• Do the circumstances that led to the bankruptcy appear to be an isolated incident, not deliberate or
reckless?
• Is there evidence that the individual understands and appreciates the causes of the bankruptcy?
• Is there written confirmation from the trustee in bankruptcy or official receiver to show that the individual
has co-operated with the bankruptcy process?
If the Committee has positive responses to these considerations, or even to most of them, the member will
almost certainly be able to retain his/her membership.
Therefore, an ACCA member will not necessarily be excluded from membership as a result of a bankruptcy event.
Each case will be judged on its merits and individual circumstances taken into account.

The combination of the circumstances of your seperation and your mental health problems should mean that you are treated as having has an "isolated incident" - you were after all managing your debts well before your seperation. If you decide to go this route it is defintely a good idea to get a DMHEF as evidence for the ACCA.

I would suggest that the alternative of struggling with your debts for 10+ years won't be good for your mental health nor for your children. I was a single parent of two young children myself - just dealing with family life and work will take 100% of your energy. You don't need the extra burden of debts.