Author Topic: Please help? - No job - No income - 10k debts  (Read 1735 times)

mrpdl

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Please help? - No job - No income - 10k debts
« on: Jun 09, 2011, 11:09:03 PM »
Hi All


My brother has just revealed to me that he has had a problem with debt. He has currently been sacked from his job due to an ongoing arm injury of which he is currently completing physio. it has now been 6 months since he has worked.


As he now has no job the debt he was hiding is now the forefront of his mind as he now has now money. His job was masking his debt previously. It looks like he has only been paying the interest.


He has debt on his current account of about £1000, £3000 on one credit card and £6500 on another credit card. His cards have been cut up.


Main issue is that he has been bailed out twice in the past by my parents in total around £10k previously 5 years ago. I cannot afford to help him and I cannot tell my parents that he is in debt again.


He has no assets and still lives at home. i am now worried that he is getting letters from collection agencies and he is not reading them. Burying his head in the sand.


I have tried to help him but he will not let me sit down with him and look at his debt sort a budget and write letters to the bank. He has been in contact with the credit card companies and has reduced the monthly payments to about £50 a month each. However he has no money at all to pay them.


As his current account is in arrears his unemplyoment benefit is paying off his overdraft.


We were due to sit down and sort it all tonight but he has gone AWOL and is not answering my phone calls.


My parents do not know about the debt and we are trying to hide it as I am worried if we say he is in debt my Dad will kick him out. Also I do not want to tell them as my Mum's mother has just passed away and my Dad had a heart attack 3 months ago. So I believe the pressure is too much.


As my brother has had the injury and is finding it hard to work for a period of time he is now feeling the pressure and I am worried about his sanity.


Any help would be great, I do not know if an IVA or DRO is the way to get this load of his mind so he can start building his life again.


Thanks in advance.

James Falla

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Re: Please help? - No job - No income - 10k debts
« Reply #1 on: Jun 10, 2011, 12:38:26 PM »
Hi mrpdl
 
Sorry to hear about your brother's situation. Given that he has no income or assets and his debt is around £10,000, an IVA would not really be a suitable solution. He is better off considering a Debt Relief Order. This would only cost him in the region of £90 and if his circumstances do not improve, then his debt would be written off for good within 12 months. The DRO would also worsen his credit rating so he would be prevented from borrowing again in the near future which from what you have said would not be a bad thing.
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