My brother is currently staying with us in a foreign (non-EU country). He has finally admitted a number of mental health challenges and we are effectively taking care and supporting him for at least the short to medium term.
One of the issues he is facing is a number of impossible debts. He has taken a very much head in the sand approach to his finances for years and ended up with an IVA in 2012. He defaulted on this in mid 2014 - along with a number of other smaller debts. In total he owes around £15000.
I am desperate to help him to resolve his mental health issues and I know that removing the debt stigma from him will be a huge help. Whilst I am not rich I do have a bit of money put by in savings and am willing to help him pay things down. He has not worked for the past few years and is likely to stay with me here for at least 6 months.
I have checked his credit file and can see that his debts have been passed to 3 debt collection companies. Only one CCJ has been issued to him for a relatively small mobile phone bill. Most of the debts were defaulted in June and July 2014.
I was wondering should I call the debt collection agencies and offer to make some sort of payment to them in exchange for writing off the debts? It seems that some of the debts may become time barred later this year - if I call now will it alert them to begin court proceedings against my brother. I have never been in debt in my life and have lived abroad for the last decade so I don't have any experience of this. I want to help my brother but I can't afford to write off his debts all at once.
I'd be hugely grateful for any advice. I did look at step change but as neither he or I Clare UK residents it doesn't look as if they can help. Really grateful for any advice before I balls this all up.