How you handle a credit and debt matter will obviously depend on the specific facts and the client’s circumstances, but these case studies will provide some guidance on how to approach credit and debt matters in practice.
This section sets out five case studies based on matters that Homeless Law has previously assisted clients with.
Elaine sought assistance from Homeless Law in relation to a $750 debt she owed to a telecommunications company for a home phone bill. The debt was incurred about two years ago when Elaine was living in a private rental property.
The debt had been sold to a debt collection company and was approximately three years old.
In 2009 Megan had a car crash while driving her uncle’s car. The car wasn’t insured, so the other party’s insurance company was pursuing Megan for the $18,000 that they’d had to pay their driver.
The insurance company had sold the debt to a debt collection agency.
A few months after the car crash Megan had a psychotic episode that left her hospitalised and with a suspected acquired brain injury. She was later diagnosed with schizophrenia.
John sought assistance from Homeless Law in relation to a $1200 debt he owed to a telecommunications company for a home phone bill. The debt had been incurred about a year ago when he was living in transitional housing outside Melbourne. A lot of the debt was for late payment fees. The telecommunications company was threatening to disconnect John’s home phone.
John instructed Homeless Law that the phone company had not explained to him that phone calls from her home to Melbourne were charged at a long distance rate when he signed the phone contract with them.