How to Write Off Debt Due to Illnesses
When a person assumes a loan, they intend to repay their debt; the tragedy occurs when mental or physical illness prevents people from meeting their financial obligations. The Financial Conduct Authority has developed specific provisions to help those with mental and physical illnesses when they wish to write off debt. Unfortunately, even the terminally ill can end up facing bank harassment according to their automated collections processes.
If you need to write off debt due to illness or mental health issues, the road will not be an easy one. Debt collectors, in general, are not keen on writing off debt regardless of what the reason may be. It could happen but this is a last resort for creditors unless there is obviously no way that you can pay off the debt any time soon.
DoNotPay can guide you into making the process quicker and easier to follow. We have successfully worked with other collection agencies in the past such as:
- Advantis Debt Collection
- Marston Group Holdings
- Moorcroft Debt Recovery
- Lowell Financial
- DWP Debt Management
If you’ve recently paid loans with the following companies, we can also check if you are entitled to a refund:
Most lenders will refuse to acknowledge mental or physical illness but do not fret. DoNotPay recognises the schemes of major financial entities and works hard to ensure that the vulnerable are given a better chance at fighting back.
How to Write Off Debt Due to Illness
Being ill while struggling to manage your finances can be extremely detrimental. It makes coping with the debt more difficult to deal with especially if your sickness is also affecting your livelihood.
You may reach out to your debt collector and let them know of your health issues. They may not completely write off your debt but could pave the way to better payment arrangements for you.
On the other hand, if you are experiencing a mental health condition, the Equality Act 2010 requires creditors to create a payment plan that works best for you. Some creditors will require that you send medical documents that will support your claim. Always make sure that you only send them a copy and keep the original. The creditor may not completely write off the debt but they could allow writing off a part of it.
What Happens if I Don't Pay My Debt and Must Write Off Debt Due to Illness?
Anyone who has been through the wringer of the UK Collections System can testify that the process can be unpleasant and stressful. Creditors know the collection policies in place but they will often push it to the boundaries for as long as they don’t cross the line.
In the UK debt recovery typically involves the following:
- The agency will send out an NOA (Notice of Assignment) informing the individual when their bills have been forwarded to other agencies.
- They will send an LBA (Letter Before Action). If the agency is reputable, then they are supposed to give the individual a short window to either pay the debt or issue a temporary stop on the debt and tell the creditor to cease contact.
UK creditors may seek County Court Judgments (CCJs) if particularly vindictive and will attempt to get bailiffs to the address of a debtor. However, it is possible to state insolvency, reach an Individual Voluntary Arrangement (IVA), and force creditors to acknowledge their inability to collect the debt from someone with severe mental or physical impairments.
Being as sick as a dog does not necessarily mean debt collectors will take it easy on you. Their main objective after all to gain profit is to collect on your debt. If you feel your debt collector is being unnecessarily difficult, you can file a complaint with the FCA.
Below are the contact details for the FCA:
|Phone||0800 111 6768 (freephone)
0300 500 8082 (from the UK)
+44 207 066 1000 (from abroad)
|Live Chat||FCA Contact|
|Postal Address||12 Endeavour Square, London E20 1JN|
Alternative Ways to Resolve Consumer Debt
Debt collectors may not completely write off your debt and if their proposed payment arrangement still doesn’t work with your current situation, there are other options available.
- IVA or Individual Voluntary Arrangement - This option works best if you have existing debts from more than one creditor or collection agency. An insolvency practitioner will be working out the details of the instalments that you will have to pay over a specified period of time. If the creditors agree to the IVA, you will then pay the insolvency practitioner and he will divide it among your creditors.
- Debt Relief Order - Also known as a DRO, this allows debtors to take a breather by putting a pause on the debt for a year.
- Inquire on Vulnerability Policy - If you owe Council Tax debt, you may ask the council for any existing Vulnerability Policy they may have. Certain councils give special consideration for people they consider vulnerable, such as people with disabilities, people with mental disabilities, the elderly, etc.
- File for Bankruptcy - This should be a last resort and only if all other options will not work for you. Bankruptcy will not cover all debts and may still require you to pay them off when your bankruptcy ends.
If this is all too much to digest, there’s no need to worry. DoNotPay will always be here to see you through.
Using DoNotPay to Successfully Write Off Debt Due to an Illness
The process of filing for bankruptcy or IVAs in the United Kingdom is quite complex and can have consequences displayed in public records. Historically, the UK is seen as one of the least forgiving countries when it comes to debt, but attorneys fight to keep bailiffs and collectors from enforcing debts each day.
If you cannot pay your debt due to an illness, even accessing the paperwork and doing this without any money could very well be impossible. It's time to get an intermediary like DoNotPay involved.
Just do the following steps to get your debt dealt with:
- 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.
And that’s it! As soon as we have your details, we’ll get to working on a game plan that works best for you. No one mentally or physically ill should be forced to engage in brutal fights with creditors that may worsen their condition(s). There's no reason to handle it alone, so let DoNotPay fight for you.
Other Issues That DoNotPay Can Help You With
Aside from providing assistance in dealing with debt, DoNotPay has other helpful features that you might be interested in. You can download and use the app to:
- Find missing money
- Deal with your bills
- Sue anyone in small claims court
- File a complaint against any company
- Increase your credit limit easily
- Process an online payment
Sign up with DoNotPay and find convenience in having a robot lawyer who will assist you as efficiently and cost-friendly as possible.