Can You Get Debt Written off Due to Mental Illnesses?
When someone is suffering from mental illness, simple day-to-day activities may seem tedious, including managing their finances. Fortunately, people with or at least frozen, depending on the evidence they provide and whether or not they qualify for the government's Breathing Space scheme.
There are a number of agencies that you can go to when you are mentally ill and need respite from your debt. And there are a number of steps you can take, such as asking to pay in smaller instalments, asking for Breathing Space or asking to have your debt written off altogether.
However, it is necessary for you to fill out the forms correctly and present evidence in order to qualify for any of these things.
Meanwhile, if the creditors are after you to pay your debt, you might feel very stressed out, which can contribute to the state of your mental health. This is why it's a good idea to use DoNotPay. All you need to do is answer a few questions and we will figure out the best course of action to get your creditors to change their behaviour.
How Does Mental Health Lead You Into Debt?
Different kinds of can affect your finances in different ways.
|Depression:||If you are depressed, you may not be motivated to get your finances in order.|
|Anxiety:||Having anxiety means feeling as if walls are closing in on you and dealing with persistent debt collectors could aggravate your mental state.
When a person is dealing with high levels of anxiety, the fear is almost immobilising. Causing difficulty in getting your thoughts straight, much less deciding the right course of action.
|Bipolar Disorder:||If you have bipolar disorder, you may end up overspending during your manic episodes.|
|Hospital Stays:||If you need to go to a hospital or a clinic due to your mental illness, you may have to spend a lot of money. Plus, you may need to take time off for work, both of which can lead to debt.|
|Dementia:||This mental illness damages one’s capability to remember things and perform tasks that may come as normal to other people. This makes handling finances nearly impossible and pushes you to spiral down into debt.|
These are just some of the ways in which mental illness can lead you into debt, but there are many others, depending on your current mental status.
Breathing Space Scheme to Help People With Mental Illness and Debt
If you have a mental illness, you can apply for the Breathing Space scheme which was launched in 2021.
Here's what you need to know:
- Time Period: Under this scheme, you get 60 days of breathing space to resolve your financial difficulties.
- Interest/Penalties: During those 60 days, the creditor can't charge you interest or penalties.
- Enforcement: During those 60 days, the debtor can't force you to make any payments.
- Counselling: You can get treatment for your mental illness and advice about dealing with your debts during this time.
- Crisis: If you are in mental health crisis treatment, your breathing space can be extended by 30 days.
Although the Breathing Space scheme doesn't result in your debt being written off, it's a good option for people who have a mental illness to get some time to figure out how to get their finances in order.
Other Options for People With Mental Illness and Debt
There are several steps that you can take if you have a mental illness and are struggling with debt.
- Extension: You can tell your debtors about your mental illness and request them to give you more time to pay off your debt or put debt collection on hold for some time.
- Contact: You can also request them to contact you at set times or by letter rather than phone if this will help in lowering your stress levels.
- DMHEF: You can fill out the DMHEF (Debt and Mental Health Evidence Form) which is a standard form, to provide evidence of your mental illness.
- Writing Off: If your mental illness is longstanding and there is very little chance of your finances improving, you can ask for your debt to be written off. Your creditor may not agree to this, but you can suggest it to them. The National Debtline has a sample letter that you can refer to if you decide to go with this option.
Why Use DoNotPay if You Have Debt and Mental Illness
It's always difficult when you have debt and creditors/collection agencies are sending you letters and calling you throughout the day. Sometimes, the behaviours of collection agencies can even spill over into harassment, such as when they call you early morning/late at night or threaten you with physical or mental harm unless you pay up.
When you have a mental illness, these behaviours can be even more distressing. However, keep in mind that you are not out of options. There are agencies that can help you to deal with creditors who are harassing you. You can also get financial advice to help you apply for Breathing Space or get your debt written off altogether.
DoNotPay can help you to decide the next best step for you. All you have to do is enter some basic information about your debt and the behaviour of the collection agency. DoNotPay will help you figure out if they are violating any laws and will also advise you about what you should do next.
- Search “debt collection” on DoNotPay.
- Answer a series of questions about the debt collectors, including when you were contacted and how you were contacted, so we can determine if they have violated any debt collection laws.
- Decide which course of action you want to take based on our guidance, such as filing a debt verification request, demanding for the collectors to stop contacting you, or reporting them to a professional trade association.
Which Debt Collection Agencies Can DoNotPay Help You With?
If you have a mental illness and are also in debt, you may be contacted by a collection agency. And if the manner in which they are contacting you is distressing you, then you can use DoNotPay to decide what your next step should be with them.
Here are some collection agencies that we have dealt with in the past:
- Marston Group Holdings
- Moorcroft Debt Recovery
- Provident Loans
- DWP Debt Management
- Lowell Financial
- Advantis Debt Collection
- Amigo Loans
Enjoy Other Solutions From DoNotPay
If you are being harassed by any of your debt collection agencies, DoNotPay can help you figure out the best way of dealing with the situation. Aside from this, the platform boasts of other services that you can take advantage of:
- Sue anyone in small claims court
- Pay bills online
- Get help with bills
- Enjoy free trials without being charged
- File a complaint against any corporation
- Find unclaimed money
- Increase your credit limit
- Cancel any service or subscription
By right now you’ll save yourself from dealing with difficult debt collection agencies and other stressful red tapes brought about by negotiating with corporations.