1. Introduction to Debt April 2015 Roni Marsh

2. Reference Materials 3

3. Feelings and Reasons Redundancy Shame Literacy Fear Death Anger
Business Failure
Over indebtedness
Creditor action
Shame
Fear
Anger
Distress
Anxiety 4

4. Financial Statement
5 and 6

5. Benefits? Children – Child Benefit, Child Tax Credit
Disabilities – Disability Living Allowance, Employment and Support Allowance
Caring Responsibilities – Carer’s Allowance
Rent – Housing Benefit aka Local Housing Allowance
Mortgage – Support with Mortgage Interest
Council Tax – Council Tax Benefit
Benefit Cap and Bedroom Tax 8

6. Creditors List 9

7. Bank Accounts Account Fee Overdraft Setting Off Basic Bank Accounts
First Right of Appropriation
Continuous Payment Authority
Financial Ombudsman Service
Lending Code 11

8. Financial Ombudsman Service and Money Advice Service12

9. Why not liable? Not in client’s name Not taken out by client
Council Tax – Not liable person or property exempt 13

10. Priority Creditors 18 Priority Mortgage Gas Electric Council Tax
Child Support
Tax, VAT, NIC
Secured Loan
Service Charge
Hire Purchase?
Rent 18

11. Council Tax Enforcement
Bailiffs
Attachment of Earnings Order
Attachment of Councillor’s Allowance
Attachment of Benefit Order
Third Party Debt Order
Charging Order
Bankruptcy
Prison 21

12. County Court Judgment
Claim and Admission 23

13. County Court Judgment
Defence and Counterclaim 24

14. Money Claim Fees 24

15. Statutory Demand
24 and 25

16. FSA leaflet 27

17. Loans from individuals
Non-Priority Debts
Non-Priority
Store Cards
Credit Cards
Pay Day Loans
Unsecured Loans
Catalogues
Overdrafts
Water
Hire Purchase?
Benefit Overpayments
Social Fund Loans
Loans from individuals 30

18. Non-Priority and Debt Options
Take No Action
Write Offs
Payment Holiday/Moratorium
Negotiated Agreement with Creditors
Debt Reorganisation/Consolidation Loan
Debt Management Plan (DMP)
Full and Final Settlement
Voluntary Charge 30

19. Big Four Debt Options Administration Order Debt Relief Order
Bankruptcy
Individual Voluntary Arrangement 32

20. 36 and 51

21. 36 and 51

22. Credit Rating 36

23. Leaflets 36

24. Exercise 1 – Ms Sawyer Does she have a spare room she can rent out?
Is she on a water meter because as a single person it might save her money?
Free university or other courses
She is on an estimated bill and as a result she should give them her correct meter readings to get a correct bill. 38

25. Exercise 2 – Mr Luthor The possible debt options are: Take No Action
Bankruptcy
Negotiated Agreement with Creditors – Pro-rata offers
Debt Management Plan 43

26. Exercise 3 – Mrs Lane She could claim Job Seeker’s Allowance
She could claim Support with Mortgage Interest through Income Based Job Seeker’s Allowance
She could claim Council Tax Benefit
She should ring her mortgage, gas, electricity and local council about Council Tax and explain the situation and ask for time to pay whilst she applies for benefits
She could apply for a grant from CHARIS to clear her gas and electricity arrears.
Once she is on Job Seeker’s Allowance she could ask for an Attachment of Benefits Order for her Council Tax debt 43

27. Exercise 4 – Mr Kent The Debt Options are: Write Off Take No Action
Debt Relief Order
Negotiated Agreement with Creditors for Token Amount
Also to be considered are:
Direct deduction for gas and electric to reduce the debt repayments or application to CHARIS to get the debts written off.
If there were things they needed they would probably be able to apply for grants due to Mr Station being long term sick.
Free School meals, School Uniform grant, bus and tram discount 43

28. Exercise 5 – Miss Jor-El You could tell her it is a priority debt
You could tell her that Council Tax most likely has a Liability Order and the enforcement options they now have available
You could suggest an Attachment of Benefits Order might be the cheapest option
You could also inform her about grants, Disability Living Allowance, free or low cost education as she is on benefits. 43