# Debts over 20k,very low income



## zelda38 (1 Jun 2015)

My debts are in the order of 35k (2 Cc,1 term loan).I have defaulted on all 3.
I obviously have too high debts for a DRN,but my personal monthly income is of the order of €300,so I'm assuming that it is way too low for a DSA.
In any event,all my income goes into the households pot, as my partner earns approx 2,500 a month against rent of 1200.
Is there any debt relief scheme that would suit my situation?


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## moneybox (1 Jun 2015)

What is a DRN and DSA?  Can you get a job that pays more than €300 a month?


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## zelda38 (1 Jun 2015)

I provide the childcare as my partner works a fair distance from home and is not home till late.So any job I would be likely to get would only pay the childcare,and leave me no better off.


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## so-crates (2 Jun 2015)

moneybox...
DSA: Debt Settlement Arrangement
DRN: Debt Relief Notice
More info here: [broken link removed]

zelda38, don't assume. It sounds like DSA (Debt Settlement Arrangement) is the logical option in your case as the debt is unsecured. 

[broken link removed]

I think perhaps start here with the Insolvency Service... http://backontrack.ie/


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## vandriver (2 Jun 2015)

A DSA must go through a PIP,so the problem that I see is that there is no money either upfront,or through a levy on agreed payments,to pay the PIP.
(As on this income,there won't be a monthly payment).


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## so-crates (3 Jun 2015)

True. However, the OP needs to start somewhere. The logical solution is a DSA but it may not be an acceptable solution to the creditors (since as you rightly point out and leaving aside the consideration of the PIP, they'll get paid nothing). The worst thing to do though would be to do nothing. At least go to the website and review the literature and then ring the ISI and talk it through with them (076 106 4200)


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## demoivre (3 Jun 2015)

If the OP's  debts are in his own name, no likelihood of increased income and no assets he has little to worry about from the banks. If I was the OP I'd be pointing out my hopeless insolvency to the creditors and see what happens!


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## zelda38 (3 Jul 2015)

One of my debts (almost 12k CC debt) has moved from the High St bank to a debt collection agency.
In a phone call last night,they straight off the bat offered a 50% reduction in full and final settlement of the debt.
I unfortunately don't have almost 6k lying around,but it got me thinking ...obviously this is an opening offer,so what is it possible to achieve in a %age reduction.
Before anyone gets on their high horse,I would have to borrow the money from my mothers savings,that she needs to live on(as she has only a v small pension) with no certainty that I could ever pay back more than a token amount.


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## moneybox (3 Jul 2015)

zelda38 said:


> Before anyone gets on their high horse,I would have to borrow the money from my mothers savings,that she needs to live on(as she has only a v small pension) with no certainty that I could ever pay back more than a token amount.



I dont think you should touch your mother's savings.  She needs this money to supplement her meagre income.


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## vandriver (1 Oct 2015)

Hi Zelda
Good news,the limit for a drn has increased to €35,000 so that should be the way to go.
Edit...if yourdebts have crept past 35k since you posted,you need to get them back below the threshold


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## DebtCert (2 Oct 2015)

The limit is still €20,000. It is soon to increase to €30,000.


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## vandriver (2 Oct 2015)

DebtCert said:


> The limit is still €20,000. It is soon to increase to €30,000.



I might have slightly jumped the gun.The ISI website says the limit is now 35k,but in a downloadable PDF says that it will commence shortly.
But to correct the error above,I can confirm that the limit will be *€35,000*.


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## cremeegg (2 Oct 2015)

demoivre said:


> If the OP's  debts are in his own name, no likelihood of increased income and no assets he has little to worry about from the banks. If I was the OP I'd be pointing out my hopeless insolvency to the creditors and see what happens!



This is good advice.

If you want to have an idea of what will happen look through previous threads for a poster called Time See this key post http://www.askaboutmoney.com/threads/court-procedure-for-debt-cases.143928/


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## Pannini (2 Oct 2015)

Hi all, the threshold has definitely been increased to €35k since Wednesday for a DRN. There's a Press Release on the ISI website.  Also the process is totally different to the other insolvency solutions in that you apply through an Approved Intermediary who cannot charge you -   most of whom are based in MABS. The creditor does not get to vote so if case is genuine, the full debt amount is written off, and the person doesn't have to go to Court. There's a simple guide on the process over on the backontrack.ie website


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## zelda38 (2 Oct 2015)

It definitely looks like my solution.
To update,my smallest debt(500 overdraft) has had no correspondence.
My middle debt,has gone to a debt collection agency,who despite their rottweiler online reputation,have phoned me about 4 times and written to me twice.
I made an offer of 500 which was rejected out of hand.In a subsequent phone call,the lady insisted that they couldn't accept less than 40 a month,so when I told her mabs online calculator showed me with 3 euro a month spare(including spouses income),and that her share was 1.30,she hung up.
The largest debt,has gone to a different debt collection agency,who have written one letter asking me to contact the Cc company to pay off my arrears.(That's it)
So,with the new drn limits is there any chance that any of my 3 debtors would take a pragmatic view and accept a token payment (less than 4c in the euro) rather than zero?


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## Pannini (2 Oct 2015)

zelda38 said:


> It definitely looks like my solution.
> To update,my smallest debt(500 overdraft) has had no correspondence.
> My middle debt,has gone to a debt collection agency,who despite their rottweiler online reputation,have phoned me about 4 times and written to me twice.
> I made an offer of 500 which was rejected out of hand.In a subsequent phone call,the lady insisted that they couldn't accept less than 40 a month,so when I told her mabs online calculator showed me with 3 euro a month spare(including spouses income),and that her share was 1.30,she hung up.
> ...


If you are granted a DRN your creditors have no choice but to accept that.  They will be written to by the Insolvency Service and advised that they cannot contact you for outstanding debt.  The DRN is intended for people who are in genuinely in financial distress and have no other prospects of becoming solvent and so their debts are completely written off.  Maybe you should call the insolvency service to see how you start the process.


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## zelda38 (13 Oct 2015)

My largest Cc is to be charged off at the end of the month.What does this mean,and does it make any difference to pursuing a DRN?


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## Bronte (14 Oct 2015)

Pannini said:


> Hi all, the threshold has definitely been increased to €35k since Wednesday for a DRN. There's a Press Release on the ISI website.  Also the process is totally different to the other insolvency solutions in that you apply through an Approved Intermediary who cannot charge you -   most of whom are based in MABS. The creditor does not get to vote so if case is genuine, the full debt amount is written off, and the person doesn't have to go to Court. There's a simple guide on the process over on the backontrack.ie website




I'd heard about the increase and think it's a great idea.  And the final realisation that people in debt cannot afford to pay PIPS. 

2015 and we still haven't sorted out so many messes.  Hope the ISI can finally show some major actions in people getting sorted.


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## Bronte (14 Oct 2015)

zelda38 said:


> It definitely looks like my solution.
> To update,my smallest debt(500 overdraft) has had no correspondence.
> My middle debt,has gone to a debt collection agency,who despite their rottweiler online reputation,have phoned me about 4 times and written to me twice.
> I made an offer of 500 which was rejected out of hand.In a subsequent phone call,the lady insisted that they couldn't accept less than 40 a month,so when I told her mabs online calculator showed me with 3 euro a month spare(including spouses income),and that her share was 1.30,she hung up.
> ...



I love the way you handled the Rottweiler.  But you really ought to go down the formal route of a DRN so that none of these debts ever come back to haunt you when good times come back.  How about phoning Mabs and contacting the ISI?

And don't make any offers to anybody, looks to me like you need pay nobody anything unlessthere is something you have omitted to tell us.  And the absolute worst thing to do is take money from your mother.

I've had a very cursory look at the ISI new (Sept) booklet on the procedure and you need to get your skates on, *no fee for the AI and ISI is waiving it's fee until the end of this year* (Warning to all people looking at this. ).  In particular it looks exactly the right thing for the debts you have (credit card and overdraft)


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## Bronte (14 Oct 2015)

[broken link removed]

*What is a DRN?*
The Act makes provision for the issue of a Debt Relief Notice (DRN) in certain circumstances. Its purpose is to give relief from debt to people who are in debt and have little or no disposable income or assets which they could use to repay what they owe.

The qualifying debts they owe cannot exceed €35,000.

The DRN process enables eligible insolvent debtors to write off their debts where they can prove they are not in a position to repay them and it is unlikely their financial situation will improve in the next 3 years.


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