Please help, in 2000 i had a nasty split with my partner who vanished leaving me with a mortgage that i couldnt pay and about £6000 in debt. I handed in the keys and move, i never contacted them after that. i have since married and rent a flat but the constant worry about being caught forced me to have a nervous breakdown i am now on sleeping tablets and anti depressants, i have no bank account and am too scared to apply for one which makes living vey hard. Should i just wait and see what happens or approach them first. The house was sold in 2001 with a shortfall of £25,0000.

-- millie (millie10272001@yahoo.co.uk), September 22, 2004

Answers

millie,

First knock the sleeping tablets and anti-depressants on the head, they are not the answer. There is a way out of this situation. If you are on a low income and have no assets, what have you got to worry about ? Nothing. I would not let this drag on and on as it is obviously getting to you. First, I would put the lender to strict proof of the alleged debt as advised on this site. Make sure in any communications with the lender/debt collector etc you always deny liability and dispute the debt, make sure too any third party working on your behalf are told in writing not to acknowledge the debt (and keep a copy of the letter). If and when the debt is proven then you could try and obtain a nominal full & final settlement, e.g. £250. Your local CAB can help you with this. If there are good grounds to dispute the debt and you are on low income with no assets you may be eligible for legal aid, so you could get a lawyer to fight your case. Don't forget you can always declare insolvency at ANY STAGE. This will wipe out the debt in one foul swoop. You would be discharged after 12 months or less. The down side is it would be difficult to obtain credit for 6 years afterwards, but who wants that anyway ?? Plus it would cost you around £300. If you have a good salary and assets things are more complicated, but you can then, as most people do reach a negotiated f&f settlement. Regarding the bank account you can always get a savings account with a card for drawing out cash, where no credit checks are made, ask around your local banks. Halifax 'liquid gold' is one I think. So, onwards and upwards. Good Luck.

Mark

-- M Amos (idgroms@hotmail.com), October 22, 2004.