Urgent advice - bankruptcy/DRO

pinkmum3
pinkmum3 Posts: 14 Forumite
in Bankruptcy & living with it
Hi, I'm looking for some urgent advice. I was getting all set to apply for bankruptcy in the next week or so and have started my online application form. Yesterday I heard back for the first time in ages from one of my creditors who said that they were clearing the outstanding amount of £3552 that we were in a dispute over. Without this my debt drops to £22336.82. My question is this, should I attempt to get this under £20000 by asking for help from my mum and go for a DRO instead? Or is there no benefit in doing this besides the lower fee? I realise if I was to be gifted the money I would have to share it equally between the creditors. I am a single mum so need to do the right thing....I've made enough mistakes in my life already!!

Comments

  • TBagpuss
    TBagpuss Posts: 11,203 Forumite
    First Post First Anniversary Name Dropper
    I'm not sure of all the pros and cons - you might find it helpful to speak to Stepchange who can give you some free advice, before you make a decision. https://www.stepchange.org/
    All posts are my personal opinion, not formal advice Always get proper, professional advice (particularly about anything legal!)
  • haggis0073
    haggis0073 Posts: 160 Forumite
    would defo get advice first before anything, if you were going to get it to under 20,000 then distribute the payments equally and fairly, this way you will not get into trouble for preferential payments

    But that is just my thoughts, certainly get advice before you make any payments imo :)
  • National_Debtline
    National_Debtline Posts: 7,998 Organisation Representative
    First Post First Anniversary Combo Breaker
    Hi pinkmum


    One brief observation - the difference between the DRO and bankruptcy fees is £590 (£90 vs £680). Your mum would have to fork out roughly four times that just to get your total debt below £20,000 - I'm not sure I see any benefits in this. Ultimately both routes will lead to the same destination, even if the processes are not identical.


    Like the others above, I would encourage you to seek more detailed advice from one of the debt charities before committing yourself one way or another.


    Dennis
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
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