Author Topic: Daughter's loan and CC debt  (Read 5118 times)

Steven Jackson

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Re: Daughter's loan and CC debt
« Reply #15 on: Sep 24, 2010, 03:56:22 PM »
Hi MaandPa
 
Any news from the bank manager? Hope your daughter's meeting was positive :)
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MaandPa

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Re: Daughter's loan and CC debt
« Reply #16 on: Sep 24, 2010, 06:51:08 PM »
Hi MaandPa
 
Any news from the bank manager? Hope your daughter's meeting was positive :)
Hi Steven,

Not very positive at all, as nothing has changed since her last meeting with the bank. Basically, although the bank is in contact with both parties, they will not split the loan making each individually responsible for their half, so, should one default, the other becomes liable for the total debt.
They have reluctantly agreed to allow monthly cash payments over the counter.

We are no further forward really, even after a personal contact with the CEO of Lloyds TSB.  >:(

Regards,

MaandPa

Steven Jackson

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Re: Daughter's loan and CC debt
« Reply #17 on: Sep 28, 2010, 08:57:21 AM »
Hi there MaandPa
 
Unfortunately that is exactly what I thought would be the result of the meeting but you have to try. As I mentioned before, in terms of finances, the easiest thing for your daughter to do would be to declare herself bankrupt meaning that she would be rid of the debt straight away and once and for all so she can turn over a new leaf and move on. However, if this is too big a step to take immediately, a debt management plan with he bank would be possible of she starts to struggle to make the payments.
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MaandPa

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Re: Daughter's loan and CC debt
« Reply #18 on: Sep 28, 2010, 10:44:03 AM »
Morning Steven,

I get the feeling that daughter is coming round towards the thought, of declaring herself bankrupt, as she has received a letter from the bank informing her, that as the direct debit was cancelled (not by her though), the loan is now in default.  :o
What happens now? Is this where the bank chases the first name on the loan agreement, or both names?

Regards,

MaandPa

Steven Jackson

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Re: Daughter's loan and CC debt
« Reply #19 on: Oct 01, 2010, 01:26:40 PM »
Hi MaandPa
 
If the loan is no longer being paid and is in default, I would expect the bank to chase both people named on the account simultaneously. I think you just have to wait and see what happens. If your daughter has not heard anything within a month to six weeks it might be an idea to call the bank again and find out what actions they are taking.
 
Despite almost certainly being the right one, Bankrutpcy is a big step to take and so waiting for a while to see what happens may not be a bad thing. However, the bottom line is that unfortunately the debt will not disappear on its own. As such, what ever the bank does, your daughter will need to take action eventually otherwise she will be constantly living with the worry of the debt on her shoulders.
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MaandPa

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Re: Daughter's loan and CC debt
« Reply #20 on: Oct 04, 2010, 04:48:14 PM »
Hi Steven,

Thanks for the reply. This affecting her work now, and as a probationer, her performance is being colsely monitored. The bank is just not interested in allowing two young people to pay their own half of the loan, and would rather steer them towards bankruptcy. It's a nonsense. They should be encouraged to pay their debt, whatever way they can.

Regards,

MaandPa

P.S. Sorry for the delayed reply. The email notification went into our junk folder for some reason :o .


Steven Jackson

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Re: Daughter's loan and CC debt
« Reply #21 on: Oct 08, 2010, 09:31:17 AM »
Hi MaandPa
 
I understand your frustration with the bank. I agree that it would seem sensible for them to split the loan and allow your daughter to concentrate on paying her half. However, this is generally not the way that banks seem to operate. Unfortunatley her local bank manager has no power to make these kind of decisions and higher up, the problem is just one number within thousands.
 
It seems crazy I agree, but in these situations, you just have to take matters into your own hands. Do you still think that your daughter is considering the bankruptcy route?
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MaandPa

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Re: Daughter's loan and CC debt
« Reply #22 on: Oct 08, 2010, 12:57:26 PM »
Hi MaandPa
 
 Do you still think that your daughter is considering the bankruptcy route?
Hi Steven,

A uniformed supervisor informed her that as she is on probation, declaring personal banktruptcy could affect her job, which she loves and needs to keep. Her Unison rep is now involved, as the supervisor appears to be applying unnecessary pressure.

More when we get it.

Regards,

MaandPa.

MaandPa

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Re: Daughter's loan and CC debt
« Reply #23 on: Oct 09, 2010, 07:05:08 AM »
More when we get it.
We heard from daughter yesterday, and things are very quiet with regards to the bank/loan company, as she continues to make manual payments for her half of the loan.

She has been assured by her welfare officer, that she would not lose her job as a result of personal bankruptcy, however, he has advised her to go down the IVA route first, and only declare bankruptcy as a very last resort.
Although not experts, to us, that seems like a reasonable way forward, as it may help daughter to reflect upon the financial mess that she got herself into, and to embrace her responsibilities to repay the debt, rather than have it written off.

As parents, we hope and pray that she'll never get into a situation like this ever again. This whole thing has already had Ma in tears more than once, and seeing her upset pi##es Pa right off.  >:(

If things change, we'll come back with an update.

Regards,

MaandPa.

stephen88

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Re: Daughter's loan and CC debt
« Reply #24 on: Oct 17, 2010, 03:03:40 PM »
yeah my friend had the same problem and he when down the iva road and he now only has 1 yr left to clear his debt and it has been brilliant for him.

Steven Jackson

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Re: Daughter's loan and CC debt
« Reply #25 on: Oct 20, 2010, 03:52:50 PM »
Hi MaandPa
 
Sorry for my delayed response. I have been out of the office for a week. An IVA could well be a sensible option. However, generally speaking for this to work, there ideally needs to be 3 or more creditors. My understanding is that your daughter owes the majority (if not all) of her debt to a single bank. As such, this one creditor will have to agree to the IVA. If they dig their heels in and reject, she is back at square one. If you want to discuss this option in more detail please do not hesitate to [** sorry, no personal contact invitations allowed **] at Beat My Debt.
 
I understand what your daughter's welfare officer is saying that bankruptcy should be avoided if possible so it is right to consider all the options. However, if it truely will not affect her job, then I think it will be absolutely the right solution for her.
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