A friend in financial pickle

Discussion in 'OT (OFF Topic) Forums' started by Gucci, May 8, 2013.

  1. millo777

    millo777 Hardcore MB Enthusiast

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    Back on the original thread topic, the guy should be speaking to the money advice service, which is the government run service that seems to be advertising on tv all the time.

    As a first step he could contact his lenders, explain the situation and get the interest frozen. If they can raise any capital at all, from the sale of the caravan of other assets, they can came an offer to the lenders for a full and final settlement of a modest percentage of the debt. I've heard of figures being accepted around the 40% mark.

    Another option, which might be worth considering is to file for bankruptcy. If they have no substantial assets such as a house, and a modest income it would probably be a good option. People of that generation still see this a huge stigma, but times have changed, and it's nowhere near as bad as it used to be. Now it's 12 months before discharge during which time the court can make an attachment to income, and it stays on the credit agencies records for 6 years form the date of petition.

    The worst possible solution, and the one which debt management companies push for, is an IVA which is a form of insolvency and hence treated exactly the same as bankruptcy by banks and other lenders, but keeps the applicant poor for 6 years and genertaes a 6 year income for the debt management vultures. The only upside to this option is the applicant gets to keep their home. As your mate doesn't own a house, it's a terrible option.
     
  2. Charles Morgan

    Charles Morgan MB Club Veteran

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    My father volunteers for the CAB and specialises in debt advice. I know it is difficult to get an appointment, but they are very good at helping with advice on sorting debts, getting benefits and dealing with tax etc. If he can go to see them that will help in many ways.
     
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  3. kth286

    kth286 Hardcore MB Enthusiast

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    You do not pay Income Tax on your pension if your total income is below the tax threshold.
     
  4. Meldrew2

    Meldrew2 Hardcore MB Enthusiast

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    As the owner of a small caravan site (ok, please stop booing) I had a caravan owner in a similar situation a year ago. He was too embarassed to approach me directly, but fortunately a mutual friend helped.

    He now pays zero site fees, and I have a part time volunteer gardener. We're both happy with the arrangement, and the gardens have never looked better.

    Maybe your friend's site owner needs a handyman on a similar arrangement?


    .
     
    Last edited: May 9, 2013
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  5. Dieselman

    Dieselman Banned

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    I didn't think a bankrupt could be forced to sell their home if it is modest.
     
  6. developer

    developer MB Club Veteran

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    A bankrupt's estate is taken into consideration after the process has commenced.

    If there's not enough to make it worthwhile chasing (say £5 to £10K) then it's not followed up. It's a risk the instigator of the bankruptcy takes.
     
  7. DrFeelgood

    DrFeelgood MB Club Veteran

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    Very much depends on the equity, it will be a hard nosed financial decision not a moral one.
     
  8. w124nut

    w124nut Hardcore MB Enthusiast

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    Surely this must be a salutary lesson for all of us. It is our responsibility to ensure that there is sufficient funding for retirement and to revisit plans to make sure that they are robust. Not an easy task.
     
  9. baxlin

    baxlin Hardcore MB Enthusiast

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    Personally I wouldn't contact the Government's Money Advice Service, as contrary to their name, they are not able to give individual financial advice, and I don't believe debt counselling is their function anyway.

    I would say CAB, yes, but an alternative is CAP (Christians Against Poverty) whose very existence is to help such as the OP's friend, regardless of their religious belief or non-belief. I attended a "do" with CAP as the charity 'aside' and was impressed with the fact that they are in it for the long haul with their clients, liaising with creditors etc.

    Other than respecting their efforts and occasionally donating, I have no connection with CAP, but hope this helps.
     
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  10. renault12ts

    renault12ts MB Club Veteran

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    It will also depend on who is owed money...it may be difficult to allow someone to keep their home if, as a consequence, someone else might lose theirs.
     
  11. Godot

    Godot Hardcore MB Enthusiast

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    Has he ever been in the Services, the Masons etc...Old Comrades Associations Regimental Associations good sources of assistance. Unions likewise, I believe. She was a Nurse you said. Just Googled "Help for retired Nurses" help for retired nurses - Google Search haven't checked them, but looks promising.
     
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  12. DrFeelgood

    DrFeelgood MB Club Veteran

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    Not sure I follow, could you give an example please?
     
  13. johnkyte

    johnkyte Member

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    This proves to me what a mess this country is in

    This couple having worked hard all their life ,,finding it impossible to manage,, while there are thousands who can put there hands on money in excess of Quarter of a million quid who will never spend it
     
  14. Dieselman

    Dieselman Banned

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    You don't know the background to either of those types of people, how can you say the "wealthy" would never spend it, or that they haven't worked their rocks off for it?
     
  15. renault12ts

    renault12ts MB Club Veteran

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    Let's say you are made bankrupt and have people to whom you owe money...who themselves are going down because they are owed that money....the house if sold will pay some of your debt.
     
  16. johnkyte

    johnkyte Member

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    I never said anything about the wealthy
    I do know the background of some poor---Ihave worked 20 hrs a day ,7 days a week in my time---and later ,rarely less than 60 hrs,,and never earned more than £8500
    I also know others who can put hands on 1/4 million--and havent done a days work since they were 40---
     
  17. Colin_b

    Colin_b Hardcore MB Enthusiast

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    And... what? This 'mess of a country' has about half the unemployment rate of the EU average, a decent NHS, no people starving, freedom from political oppression, democracy and a free media.

    The people in the OPs post might find life hard, but they will be cared for properly in their life essentials. Not pleasant, certainly, but livable.

    What do you suggest?
     
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  18. IanA2

    IanA2 Hardcore MB Enthusiast

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  19. Dieselman

    Dieselman Banned

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    Are you sure? That would put you on something like half the minimum wage.
     
  20. johnkyte

    johnkyte Member

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    Of course I,m sure---perhaps you havent noted my age
     
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