Legal/Financial Problems - Help Needed!

[willo]

Hi everyone,

I'm in a really shitety situation right now financially. I have about 4 major sums of money coming out (for various reasons) that I am not able to get out of.

Whilst I can just about deal with this, the council are also demanding a serious amount of money back from me that they gave me in error.

Although I can understand their motivation, I am sincerely angered that they feel it is somehow acceptable to make gross financial errors with people who, if they are claiming financial benefit, tend to be dealing from the financial baseline as it is.

If one receives bank statements only quarterly, these 'errors' can go unnoticed for long periods of time, as has been the case in my situation. You adjust your budget to accommodate the money that you think you own, then the council asks for it all back in one fell sweep, pulling the financial rug out from under your feet. If this is how it proceeds, I will be - quite literally - broken.

I was wondering if anyone has any experience or knows anyone who can offer any help in this situation?

It may have been a 'simple error' on their behalf, but unfortunately it has MASSIVE implications for myself. I am going to sell whatever guitar stuff I can to keep my head above water, but if anyone knows of anyone with the knowledge or services to somehow lesson the impact of this situation, I would greatly appreciate their help.

Thanks,
~willo

[Kilby]

Firstly : Don't let them panic you

Secondly : speak to the nice people at the Citizens advice bureau, as they can advise you much better than any of us

At worst they (from my own experience from this kind of thing :( ), they basically must offer you the chance to pay the amount off over some agreed period.

You may even be able to negotiate an reduced settlement under certain circumstances (it's always worth trying this approach)

Even when things get so bad as to involve courts, the court will tell the council (or whatever other isntution) that they will have to accept a payment plan. Unless some a similar agreement with them has been broken.

Not much help I'm afraid, but it was their mistake, and you should not be punished for it. It's not as if you are trying to avoid returning the money, you are just objecting to the terms they are trying to force you to accept.

Rob...

[Elliot]

Ask the CAB about an Individual Voluntary Arrangement - its like bankruptcy without the stigma: you can stop creditors pursuing you and reduce your debts and have time to pay.

[FELINEGUITARS]

Disagree about IVA Elliot
It may not have the social stigma of bankruptcy but it $%&#s over your credit rating and you can find yourself excluded from getting on with your life or getting a bank account or anything that involves your credit rating - and that is more things than you might imagine

Willlo - may be worth speaking to the council - show that you are willing to repay the money but no way can you do it in one hit, but are happy to make an arrangement that is workable.
Otherwise they risk putting you in dire straights /out on the street- not something they want to do

[HTH AMPS]

fwiw Willo, I deal with debt collection in my job (I know, one notch below traffic wardens), anyway...  phone your creditors and explain the situation, they will probably try and stonewall you to start with but persevere and say you need more favourable terms.  I'll be VERY surprised if you can't get an arrangement sorted that will be a little easier on you.

 :twisted:

[willo]

Hey guys, thanks for the thoughts.

I suppose my situation is not TOO bad - I don't think its so severe to warrant an IVA right now. I particularly would not want to go down that route as whilst its not as bad as a bankruptcy order, its still not great.

Basically, if everything goes to worst (as expected), I stand to end up maybe £500+  over my overdraft limit. Is that bad enough for an IVA?? It's going to make me completely flat broke, and the long-term issue is also going to be covering the bills etc. Making things workable feels like it is going to be impossible.

It's such a shame because I was finally working my way out of student debt, and now I'm actually behind square one.

I'm seriously banging my head against a wall, I really have no idea how to make the books balance.

[Ol]

Hey guys, thanks for the thoughts.

I suppose my situation is not TOO bad - I don't think its so severe to warrant an IVA right now. I particularly would not want to go down that route as whilst its not as bad as a bankruptcy order, its still not great.

Basically, if everything goes to worst (as expected), I stand to end up maybe £500+  over my overdraft limit. Is that bad enough for an IVA?? It's going to make me completely flat broke, and the long-term issue is also going to be covering the bills etc. Making things workable feels like it is going to be impossible.

It's such a shame because I was finally working my way out of student debt, and now I'm actually behind square one.

I'm seriously banging my head against a wall, I really have no idea how to make the books balance.

An IVA is not for this situation. An IVA is a procedure whereby the person comes to an arrangement with their creditors in how their debt will be discharged. Such a scheme requires the approval of the court and is under control of a supervisor and insolvency practitioner.

All this situation requires you to do is approach the Council and tell them how much you can afford to give them per month.  If you have to provide evidence of this by way of an SOA (income v essential outgoings) so be it.  They will see what you can afford and will come to an agreement with you.  There is no way they will take you to court if you have offered a realistic way of settlement as the judge will see this.

Another option; is it possible to extend your overdraft temporarily?

1) Make sure you use written communication and keep a copy of all correspondence.
2) Be realistic in your SOA; if you budget £200 for going out on the piss, then this is not acceptable.  Essential outgoings include rent, utilities, food, transport, etc.

rgds
Ol.

[Elliot]

A £500 deficit is in practice too low for an IVA (if it helps I am £500 overdrawn most of the year!) - I make people bankrupt for a living and I thought you were in that level of difficulty: the good news is you not there  yet  :D

As said above a scheme of arrangement with your creditors is more likely to see you through it - if you negotiate it will stop them issuing for a County Court Judgment (which will also affect your credit rating).  The council will probably accept it as there are no court costs recoverable on debts less than £5k, so it is untimately cheaper for them in the long run.

I know its hard to deal with, but -£500 is manageable if you are pro-active.  Again a CAB or local law centre can help you write letters of negotiate, so its worth visiting them.

[aisuru]

what is the situation with the council exactly? they may have an appeals process. if they do, then appeal. if it works, you don't need to repay the money, if not at least you buy yourself some time.

[chrisheyes]

Willo

Have you tried making an appointment with your locally elected councillor.
It is their responsibility to listen to your problems and then they will request answers from the department that has caused you this concern.
I've got friends who work in local government and when the coucillors ask questions the relevant department heads are legally obliged to respond.

They will fight your case if they believe it to be just.

Further to this your local MP can give you support.

Hope you soon smooth things out

Chris

[willo]

Willo

Have you tried making an appointment with your locally elected councillor.
It is their responsibility to listen to your problems and then they will request answers from the department that has caused you this concern.
I've got friends who work in local government and when the coucillors ask questions the relevant department heads are legally obliged to respond.

They will fight your case if they believe it to be just.

Further to this your local MP can give you support.

Hope you soon smooth things out

Chris

Hi guys, thanks for all the help.

I've written to the council explaining that they overpaid me but I am unable to pay it back in one go. It's a pretty strong letter, IMO. It could have been construed as fraud if I knew about it yet failed to declare it, so I thought it best to acknowledge the situation and face up to it.

If things get unreasonable, then I will get in touch with my MP. Thanks for that - great tip that I hadn't thought of.

Basically, its a case of fingers crossed and lets see what happens...