Author Topic: Daughter's loan and CC debt  (Read 5375 times)

MaandPa

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Daughter's loan and CC debt
« on: Sep 18, 2010, 09:21:29 PM »
Hello there from newbies.  :)

As parents we are totally debt adverse, and as a result we haven't a clue what it's like to be in debt, nor what advice to give our daughter who is in debt. Despite this, we would like to do everything we can to help her seek the correct advice, and for this we need your help please.

When in a relationship, she and her partner took out a joint loan for £30,000 of which £28,000 is still outstanding. They have recently split up, with our daughter being left with nothing more than the clothes she wears, the bed she sleeps in, and a few personal items. Her partner did a moonlight taking absolutely everything else.
Unfortunately the partner didn't take the outstanding debt with them, and our daughter is still liable for half the debt, the payments for which, she is struggling to make.
Also, if the partner reneges on their monthly payments and the loan goes into arrears, our daughter becomes liable for the outstanding amount.........in full. She has been to the bank on three occasions to try and sort out a reduced payment for her half of the loan, but with no success. A member of the bank's customer service staff advised her to leave it in the hands of the debt recovery people.  :o :o :o
She has been to the CAB, but again, with no success, as they say that because she is not in arrears.........yet, is in gainful employment and is "not on the bread line", they couldn't help her. This worrying situation is affecting an existing ill health condition for our daughter, and has already resulted in an extended period of sick leave, which she feels may jeopardise her current employment with a local authority law enforcement agency. Although it's not our debt, it is worrying the hell out of us too.  :( We have just discovered that she also has £1000 outstanding on a Credit Card.  >:( >:( >:(

What are her best options please?

Thanking you in advance,

Ma & Pa.

AshleyPark

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Re: Daughter's loan and CC debt
« Reply #1 on: Sep 20, 2010, 03:20:53 PM »
Hi Ma and Pa,
 
Sorry to hear of your daughters plight.
 
IS her ex partner still paying his share of the loan?
 
Lee
Ashley Park Debt Solutions Ltd
 http://www.ashleypa

Steven Jackson

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Re: Daughter's loan and CC debt
« Reply #2 on: Sep 20, 2010, 04:55:33 PM »
Hello MaandPa
 
Unfortunately given that the loan is in joint names between your daughter and her ex, then if the monthly payments are not being made, she will be liable for 100% of the outstanding balance. Her ex is also liable but if the bank only know where to chase her, then she is going to get all the collections hassle.
 
Basically, the time to act is if and when the payments stop being made. As you have said, the bank is not willing to help at all unless the payments are being missed, that is quite normal I am afraid. However, if and when the payments are missed, there are some options.
 
The bank might be pursuaded to settle the debt on your daughter's side if she is able to pay them a lump sum. Would it be possible for you to help her in that way by getting a lump sum together for her? A debt management plan is also an option but she is still liable to pay 100% of the debt and it wil take for ever to pay.
 
Depending on what other debts she has, she might be able to consider an IVA or bankruptcy. If she is not a home owner, bankrupty is not as crazy idea as it sounds. All the debt would be taken away from her and she whould only have to pay for three years max if she could afford to do so.
 
 
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MaandPa

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Re: Daughter's loan and CC debt
« Reply #3 on: Sep 20, 2010, 05:12:54 PM »
Hi Ma and Pa,
 
Sorry to hear of your daughters plight.
 
IS her ex partner still paying his share of the loan?
 
Lee
Hello Lee,

Not sure, but we do know that the partner has cancelled the direct debit from the account, to which our daughter was paying in her half of the monthly payment. Our daughter has kept any receipts that she has received, for over the counter payments towards the loan.

Quote from: Steven Jackson
Insert Quote               Hello MaandPa
 
Unfortunately given that the loan is in joint names between your daughter and her ex, then if the monthly payments are not being made, she will be liable for 100% of the outstanding balance. Her ex is also liable but if the bank only know where to chase her, then she is going to get all the collections hassle.
 
Basically, the time to act is if and when the payments stop being made. As you have said, the bank is not willing to help at all unless the payments are being missed, that is quite normal I am afraid. However, if and when the payments are missed, there are some options.
 
The bank might be pursuaded to settle the debt on your daughter's side if she is able to pay them a lump sum. Would it be possible for you to help her in that way by getting a lump sum together for her? A debt management plan is also an option but she is still liable to pay 100% of the debt and it wil take for ever to pay.
 
Depending on what other debts she has, she might be able to consider an IVA or bankruptcy. If she is not a home owner, bankrupty is not as crazy idea as it sounds. All the debt would be taken away from her and she whould only have to pay for three years max if she could afford to do so.
 
Hello Steven,

The whereabouts of the ex is known and documented.

We are not in the financial position of assisting with any funds whatsoever.

Our daughter is not a home owner, and neither is her ex. In fact apart from clothes, iPod, the bed, a little furniture, and an old banger of a car, our daughter has very little. Certainly nothing that a bailiff would want to look at anyway.  :o

Bankruptcy? How would that affect her employment with a local authority Constabulary, even though she is "non" uniformed?

Thanks to you both for replying.

Best regards,

MaandPa

Steven Jackson

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Re: Daughter's loan and CC debt
« Reply #4 on: Sep 20, 2010, 05:23:43 PM »
Hi MaandPa
 
Given your daughter has no assets, it sounds like bankruptcy would solve the debt problem for her. In terms of her employment, I have worked with a numbe rof police officers who have declared bankrutpcy and their job/career has not been affected. As such, I do not think your daughter would have a problem. However, if she was considering the option, my advice would certainly be to talk to a friendly superior at work and explain the situation first.
 
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MaandPa

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Re: Daughter's loan and CC debt
« Reply #5 on: Sep 20, 2010, 09:19:12 PM »
Hi MaandPa
 
Given your daughter has no assets, it sounds like bankruptcy would solve the debt problem for her. In terms of her employment, I have worked with a number of police officers who have declared bankruptcy and their job/career has not been affected. As such, I do not think your daughter would have a problem. However, if she was considering the option, my advice would certainly be to talk to a friendly superior at work and explain the situation first.
 

Hello again Steve,

Many thanks for the advice. We'll discuss it between ourselves, and take it from there.

It's great that we have had responses, with the offer of help. Thanks again.

Best regards,

MaandPa.

Steven Jackson

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Re: Daughter's loan and CC debt
« Reply #6 on: Sep 21, 2010, 04:46:29 PM »
Its a pleasure to be of help MaandPa
 
Good luck and do not hesitate to ask if you need any further advice. 
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MaandPa

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Re: Daughter's loan and CC debt
« Reply #7 on: Sep 21, 2010, 09:33:07 PM »
Its a pleasure to be of help MaandPa
 
Good luck and do not hesitate to ask if you need any further advice.
Thanks Steven,

We will be in touch..........very soon no doubt. This isn't going to sort it's self out.

Cheers,

MaandPa.

Steven Jackson

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Re: Daughter's loan and CC debt
« Reply #8 on: Sep 22, 2010, 03:36:35 PM »
Unfortunately you are right there MaandPa. A debt problem rarely goes away on its own. That is why I always encourage people to take advice from an expert as early as possible. That way there is normally the best possible chance of finding a sensible solution. :)
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MaandPa

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Update
« Reply #9 on: Sep 22, 2010, 05:06:34 PM »
Unfortunately you are right there MaandPa. A debt problem rarely goes away on its own. That is why I always encourage people to take advice from an expert as early as possible. That way there is normally the best possible chance of finding a sensible solution. :)
Thanks Steven,

Our daughter has "yet another" appointment with the bank manager tomorrow, and a solicitors letter, outlining her situation, is being sent to the loan company. Her "trusted superior" is on leave until next week, so we'll have to wait and see what transpires over the next few days.
Her next payment is due on the 26th September, (which she will make, but with difficulty).

Regards,

MaandPa.

Steven Jackson

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Re: Daughter's loan and CC debt
« Reply #10 on: Sep 22, 2010, 08:03:38 PM »
No problem at all MaandPa
 
In my experience, meetings with the bank tend to be unproductive as ultimately they want the debt paid and will not be prepared to wave a magic wand and make the debt disappear. However, it will be good to see what they have to say and if they can offer any help at all.
 
I will also be good for your daughter to have a chat with her superior next week about the bankruptcy option. Ultimately if that is a goer as far as work are concerned, then the process whould simply take the whole problem off her shoulders. Let me know how things go.
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MaandPa

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Re: Daughter's loan and CC debt
« Reply #11 on: Sep 22, 2010, 10:18:29 PM »
Let me know how things go.
Will do Steven.

We have just heard that an email we sent to the CEO of Lloyds TSB, has been passed onto our daughter's branch, and they have contacted her to say that, as a result of this communication from us, a letter is on it's way to her. At this stage, we haven't a clue what the contents of the letter is all about, but what we do know is, that we tried and someone listened...........it would appear.

Regards,

MaandPa.

Steven Jackson

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Re: Daughter's loan and CC debt
« Reply #12 on: Sep 23, 2010, 01:23:00 PM »
That does sound like positive news MaandPa
 
I will be very interested to hear how the meeting today goes.
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debt-buster

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Re: Daughter's loan and CC debt
« Reply #13 on: Sep 23, 2010, 02:01:24 PM »
Hi Maandpa,

I agree with Steve's advise though would add that if she's living in the London Borough of Lambeth then she can get free advise and assistance under the Lambeth Debt Project. I would also keep uptodate details of the ex in case you decide to initiate proceeedings against him.  I'm saddened at the CAB's response in your earlier email and would urge you not to lose heart as not all CABs/law centres are identical.

MaandPa

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Re: Daughter's loan and CC debt
« Reply #14 on: Sep 23, 2010, 03:18:53 PM »
I will be very interested to hear how the meeting today goes.
So will we Steven. We are waiting for the phone to ring some time soon.

Debt Buster, thanks. Not Lambeth, so not eligible for the free advice and assistance from the Debt Project.

regards,

MaandPa