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  • FIRST POST
    • Colette2013
    • By Colette2013 16th May 17, 10:16 AM
    • 14Posts
    • 9Thanks
    Colette2013
    Should we go bankrupt or 24 year dmp
    • #1
    • 16th May 17, 10:16 AM
    Should we go bankrupt or 24 year dmp 16th May 17 at 10:16 AM
    Hi

    Gosh where do I start the stress is immense, anyway we are to choose between a 24 year dpp, dmp or bankrupcy in Scotland.

    We owe just over £10,000 step change has advised us, we only have £34 suplus for 5 creditors thats why it would take 24 year to clear the debt which maks me want to cry.

    I have an illness which unless i reduce my stress levels have zero chance of getting well from.We only rent our home with a housing and our car is only worth £500 if that, which hubby needs for work and to put my mobility scooter in, last time i checked i wasnt eligible for PIP

    How bad would bankrupcy be?
Page 1
    • Colette2013
    • By Colette2013 16th May 17, 1:00 PM
    • 14 Posts
    • 9 Thanks
    Colette2013
    • #2
    • 16th May 17, 1:00 PM
    • #2
    • 16th May 17, 1:00 PM
    its fine sequestration isnt a viable option for us at this time.
    • sourcrates
    • By sourcrates 16th May 17, 1:52 PM
    • 12,462 Posts
    • 11,858 Thanks
    sourcrates
    • #3
    • 16th May 17, 1:52 PM
    • #3
    • 16th May 17, 1:52 PM
    Would you not qualify for the minimal asset process ?

    Similar to a debt relief order in England and Wales.

    https://www.nationaldebtline.org/S/factsheets/Pages/ways-to-clear-your-debt-scotland/debt-advice.aspx#
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
  • National Debtline
    • #4
    • 16th May 17, 2:03 PM
    • #4
    • 16th May 17, 2:03 PM
    Hi Colette


    Is there any particular reason you know of that would make sequestration unviable?


    Nothing you have said above or in your other thread indicates anything to me that would prevent you from pursuing this option.


    Your health and wellbeing need to be your top priority, and a process like sequestration that legally clears the debts could go a long way to helping with this.


    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
    • Johnsmith2016
    • By Johnsmith2016 16th May 17, 11:28 PM
    • 433 Posts
    • 224 Thanks
    Johnsmith2016
    • #5
    • 16th May 17, 11:28 PM
    • #5
    • 16th May 17, 11:28 PM
    24yr DMP ... absolutely not.

    Go for DRO as debt under 20k

    If not yes bankcrupty, 6yrs. Job done.
    • fatbelly
    • By fatbelly 16th May 17, 11:32 PM
    • 11,528 Posts
    • 8,663 Thanks
    fatbelly
    • #6
    • 16th May 17, 11:32 PM
    • #6
    • 16th May 17, 11:32 PM
    24yr DMP ... absolutely not.

    Go for DRO as debt under 20k

    If not yes bankcrupty, 6yrs. Job done.
    Originally posted by Johnsmith2016
    They're in Scotland, John
    • Johnsmith2016
    • By Johnsmith2016 17th May 17, 7:29 AM
    • 433 Posts
    • 224 Thanks
    Johnsmith2016
    • #7
    • 17th May 17, 7:29 AM
    • #7
    • 17th May 17, 7:29 AM
    Ah ... apologises


    A LILA then perhaps
    • fatbelly
    • By fatbelly 17th May 17, 8:07 AM
    • 11,528 Posts
    • 8,663 Thanks
    fatbelly
    • #8
    • 17th May 17, 8:07 AM
    • #8
    • 17th May 17, 8:07 AM
    Ah ... apologises


    A LILA then perhaps
    Originally posted by Johnsmith2016
    I think that's what became MAP bankruptcy (post 3)
    • skintandfat
    • By skintandfat 19th May 17, 1:07 AM
    • 176 Posts
    • 112 Thanks
    skintandfat
    • #9
    • 19th May 17, 1:07 AM
    • #9
    • 19th May 17, 1:07 AM
    You could contact the creditirs and tell them you are not able to make payments.
    I have paid £1 a month to 2 cards for 7 years. Every 6 months they ask for a review.
    I have all my incomes and outgoings on a spread sheet and reel off the up to date figures.
    As we are on benefits it shows a negative amount (our son gets DLA as he is disabled and helps us scrape by, they cannot take his benefits into account as he is an adult)


    Every option will trash your credit file so at this stage it doesn't really matter which you choose- one thing people forget to point out:
    If you default the default drops off your file 6 years from then never and should not be added later.
    In other words the sooner you default the sooner it will disappear.


    Also in Scotland - if you were to stop paying all together they may chase you for debt but you could go BR then (the creditors could petition for your BR) at no cost to you.


    If you do not pay a debt in Scotland for 5 years it ceases to exist and is also unenforceable.


    If I was in your position I know what I would do


    One other bit of advice- get a phone that records your calls (many android ones do) and use that.
    Tell creditors you are recording the call and you will be amazed at how nice they are
    • fatbelly
    • By fatbelly 19th May 17, 5:54 AM
    • 11,528 Posts
    • 8,663 Thanks
    fatbelly

    If I was in your position I know what I would do
    Originally posted by skintandfat
    What would you do?

    Your post mentions
    • making long-term token payments
    • creditors petitioning for bankruptcy
    • not paying and allowing the debts to become statute barred
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