11th
11 -
2009
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3 comments »
Summary:
Overwhelming costs from poor health is one of the most commonplace reasons for people pursuing debt advice.
As in illness people are unable to earn or are reliant on social security, money deficits can magnify debt issues in several ways. Strain caused by debt is a leading contributing factor to health problems.
The sort of help topics consumers are asking for includes: Free Debt Advice Management Schemes , Protected Trust Deeds, Individual Voluntary Arrangements (IVA’s), bankruptcy advice, administration orders, general finance management and Bankruptcy advice, Protected Trust Deeds, Individual Voluntary Arrangements (IVA’s), budgeting and Free Debt Management Plans.
Debt advisers usually spend more time with people burdened with debt from ill health because they acknowledge the particularly strenuous times they are experiencing. There aim is to release people from the strain of debt issues.
The reasons for financial issues in illness are many and varied. The usual issues that lead to finance problems for those burdened by ill health are listed below:-
• The speed with which their income has fallen.
• When you are sick people tend to neglect finances.
• It can be more difficult to sort out financial online debt issues with people whose health is deteriorating.
• Some clients get into money problems because they have more costs connected to their ill health.
• Respite care can be expensive.
• Debts can be racked up by the additional expense of transport for appointments.
• Repaying debts can dramatically reduce the family’s available funds and the reduction in profits due to poor health, makes the situation even worse.
• The illness can mean that carers have to be employed.
• The situation can be made all the worse if the main earner’s job is physical. It makes getting back to work slower.
• Similarly, problems related to mental health may force people to be off work for particularly long periods.
If you have to get a new employer many more difficulties develop. Although there are ridged employment laws in the United Kingdom, some people with poor health often develop debt problems because they’re unable work normal hours. For those with long term health difficulties, dependency on state benefits will make their debt much difficult to sort out. The problem is that many people suffering from ill health do not qualify for any benifits.
So what can be done? If you’ve already gotten behind on your payments, your lender will normally suggest methods to pay off your arrears gradually, together with your usual payments. And if you’re unable to pay these additional, you could possibly append them to your loan or delay them for a time. It will mostly depend on your track record. So pay as much as you can monthly. Make regular payments even if you have to vary them as this demonstrates that you are committed then your creditors are more likely to treat you sympathetically and you could could minimise the arrears charges as well.
21st
09 -
2009
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no comment »
If you’ve ever been separated you’ll see that the process can often leave both parties deeply in debt. The emotional side of divorce can be awful, but it’s the money side that can be one of the most demanding areas of separating. And tallying up the debts from the marriage can leave a big black hole in your bank account.
Since in financial and emotional terms the entire divorce process can be costly, there have been requests for a more sympathetic avenue to sorting out the separation terms. The “Debts and divorce campaign”, has been released by the UK Insolvency Helpline to provide a guided approach in dealing with family debts. This is good news as 45% of people surveyed said that seperation caused them more money problems than redundancy or bereavement.
In the survey, 30% of divorcees stated that they required professional debt counselling, while a quarter found it a strain to adjust to having just one household income. In fact 11% had sizable difficulties organising their debts and had to consider bankruptcy.
The study which was funded by the UK Insolvency Helpline, has clearly demonstrated that the cost of separation can leave people heavily in debt. 16% said they had used credit cards to purchase luxuries or holidays they wouldn’t have bought if still married. This kind of spending can cause problems during the divorce negotiations.
Only 7% of people said they were able to control their finances during the divorce proceedings and had come to an friendly agreement. Of the 79% of respondents who terminated their marriages on good terms, almost all said that their finances now needed a total review and reworking.
On for the most part those divorcees who contacted the UK Insolvency Helpline had between £15,500 and £24,500 of unsecured loans, while half of them had debts of between £2,400 and £5,900, primarily as a result of the expense of setting up a new home.
Many people quizzed had entered into an Individual Voluntary Arrangement (IVA) which is a moderate option to bankruptcy whilst still succeeding in largely reducing debt levels.
When it came to functional information, many relied on the CBA, whilst some turned to colleagues and others went to counsellors or used consultation organisations.
A spokesperson for the UK Insolvency Helpline said, “We have developed the Debts And Divorce Campaign to try and comprehend our callers’ spending habits. We can then help them plan for the future so that they are able to minimise their legal costs as they are directed through the entire divorce process.”
16th
09 -
2009
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no comment »
A discharge from bankruptcy means you are free from the restrictions of bankruptcy and it releases you from almost all of the debts you owed at the beginning of your bankruptcy. Any bills outstanding under student loan agreements or child support will remain outstanding.
In certain, special circumstances, the Official Receiver can appealrequest the Court for a Bankruptcy Restrictions Order. The end result being that you continue to be limited by restrictions after your discharge from bankruptcy for the duration stated in the Court Order. A Bankruptcy Restrictions Order can not effect the discharge of your debts.
How long till I am discharged?
Discharges typically take place after 12 months. But the Official Receiver can file a Court notice before twelve months are up to state that he has completed his investigation of your affairs. If agreed, youll be discharged as soon as that notice is filed. When the notice is issued, a copy will be sent to the bankrupt so that he or she knows they have been discharged. At this point you will be entirely free from debt
If the party does not work with the Official Receiver or Insolvency Practitioner, then the Official Receiver or Insolvency Practitioner can petition the Court to postpone discharge. For example, if the bankrupt provided incorrect or false information to the Official Receiver or the Trustee.
How is my discharge obtained?
Normally, the defendant will be automatically discharged after 12 months, regardless of how many deposits have been given to the creditors. If the bankrupt is discharged automatically, the bankrupt does not receive any paper work to confirm their discharge unless specifically requested. Do not correspond with the Court any sooner than 2 weeks prior to your discharge date, you will receive conformation of this about 4 weeks later.
The charge for the discharge notice is sixty pounds payable to the court and further copies will cost £1 each. The bankrupt can also require the Official Receiver to advertise your discharge all the advertising charges up front.
You will not obtain an automatic discharge if your discharge period has been suspended or the you are under a criminal bankruptcy order. If you would like more details on this should write to the Official Receiver.
10th
09 -
2009
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2 comments »
Summary
The UK Government have put pressure on mortgage lenders to minimise the levels of repossessions due to payment defaults. This article discusses how the lenders are responding.
As they steady themselves for a rise in mortgage defaults , mortgage lenders have released plans to curtail the number of households who have their homes repossessed. The Council of Mortgage Lenders said that while mortgage repossessions and arrears were expected to remain low, the UK’s deteriorating economic future could cause more familys finding themselves in difficulties.
The CML’s plan aims to ensure that familys who might not be able to maintain their mortgage repayments will only lose their home once all other options have failed. Mortgage lenders are already obliged by the Financial Services Authority (FSA) to have schemes for arrears management which aim to reduce repossessions, except where there is no alternative. But there is no standard policy, and repossession schemes alter between lenders.
In a letter to Alistair Darling the Chancellor, the CML’s said its members had signed up to four measures to help keep repossessions to a minimum.
Lenders have agreed to analyse their current arrears management plans and refine them to bring them in accordance with new industry guidelines that have been issued by the CML’s. Borrowers who fall behind with repayments will also be provided with information explaining their lenders’ arrears handling manual, so that they can comprehend what to anticipate and how they will be treated.
Lenders will also adopt what is called the “pre-action protocol” which lays out the distinct points the lender must follow through before pursuing an arrears case to court inorder to ensure court action is a last resort.
Finally, building societies and banks also have to be proactive in helping people to plan for possible higher mortgage repayments when their present deal ends. The Council wants lenders to communicate with borrowers towards the end of their discounted deal or fixed rate in good time and persuade them to get in contact with the lender if they suspect they may have difficulty meeting the higher repayments.
The Director General at the The Council of Mortgage Lenders said: ‘We continue to anticipate that the level of mortgage arrears and possessions will remain low, as originally forecasted. We continue to work closely with Government Ministers we look forward to a clear statement of the Government’s own position on a safety net for borrowers. With the economy worsening and an incomplete safety net for mortgage borrowers, the The Council of Mortgage Lenders cannot be complacent about the outlook and the challenges facing lenders, borrowers and public policy makers alike.’
10th
09 -
2009
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5 comments »
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