Author Topic: Bipolar Mental health and debt advice please.  (Read 2158 times)

cody388

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Bipolar Mental health and debt advice please.
« on: Nov 03, 2009, 07:36:52 PM »
Hello

I am new to this forum, so here goes. I am looking for some professional opinions regarding my situation, that might help me and others.

For many years now i have suffered with bad depression, currently iam trying to set up my own company with very little funds, some days i cant work cant get out of bed with bad depression and other days i go hyper, so much energy, on top of the world crazy thoughts, think i am the worlds best etc.. however today i have finally been diagnosed with Bipola its been a long time coming.

Now i am 60K in debt, various credit cards, few personal loans etc, nothing secured.

i have a 25% part share in a flat that i own, worth about 30K, i have had to stop all payments with all companies as i was robbing peter to give to paul every month, now i give £5 to each per month as a gesture.

OK i have been lucky enough to get free legal help and these guys get paid by the goverment under legal aid, it has taken alot of worry away, they do a financial review etc speak to my creditors etc.

They have asked me for details to write to my doctor about my condition, and she is happy to discuss the Bipola in a medical report and will forward it to the credit companies.

now the only income i have is working tax credit as i am trying to set up my new business when well enough to work, what i want to know is do the credit companies write of many debts with medical reports etc? Could they try and take my home? would i be safe as i suffer with this condition, causing stupid spending patterns?

Thanks any help or advice would be good?


hassan

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Re: Bipolar Mental health and debt advice please.
« Reply #1 on: Dec 19, 2009, 03:30:33 AM »
Cody,

I am bipolar too, so I can see exactly where you are coming from. Until two years ago, I had a business which was expanding, then I had a big flare up, and can't get back into it. My brother now runs it, and I am entitled to an income by way of a royalty fee for work previously done - but I too am trying to set up something new. One day it feels like it is going to be the next big thing, then I can go for a week of doing nothing.

My first question to you would be - do you get DLA?

Apart from that, I'm interested to hear that you pay so little to your creditors, but as you say, you are at least giving them something.

I only have issue with one unsecured loan, and I missed payments during my manic episode. My brother tried to take care of my finances, but was met with numerous walls about data protection, and it was only 6 months later that payments were re-started. For 18 months or so, they were getting repaid at about 60% more than the initial monthly payments - essentially a 'catch up' for previous missed payments - I tried explaining about the medical situation, but their attitude was that they could 'take a charg'e on the house and that I should have had insurance ridiculous really, insurance would not have covered this episode).

I am now trying to manage my own finances, but am guessing a payment was missed last month, and they handed it over to a debt management company. Aswell as bipolar, I have ADHD, which means I can get forgetful with things like payments - even if I might have the money, it could be in the wrong account.

The original loan was for £25k, taken out in Jan 07. I had paid £400 / mo for about 10 months, then £630 x approx 18 months - so we're looking at around £15k repaid, leaving £10 left + interest. The debt mgt company claim the outstanding balance is still just under £20k - but I think RBS work that out by loading up interest up front for the 'full' 7 year term of the loan - APR iirc was around 9%. I think they have also added on around £1k from the business a/c, an amount I don't think they are entitled too as 1) that is seperate to my personal a/c - a LTD company, and 2) this was mostly made up from fees due to their own incompetent handling of a closed a/c.

I've been offered £10k as 'full and final' - I don't have that, but my parents might. Apart from this, I have an interest only mortgage, which obviously isn't an issue at current interest rates, very little equity in the house, but I don't want to be forced out.

I have until the end of this month before the £10k offer 'expires', but at the very least I want to buy some time and know where I stand.