Baby steps toward bankruptcy

lxpeanut

I'm going to go bankrupt the only problem is I can't afford it . I'm not eligible for the fees to be waived as far as I can tell. Being single, healthy and childless I'm entitled to sweet FA when it comes to most things. I am due back payment for my payrise from June but since the unions voted against it we have no idea when it will actually arrive that should be a significant chunk towards it but not all. All I can think off is that I stop paying my DMP which seems sensible given I'm planning to go bankrupt but it means they are all going to start hassling me again and I'm not sure if I can face it.

I keep persuading myself that bankruptcy is the right way forward then persuading myself out of it. Stopping payments on the DMP would mean I am committed to doing it and that scares me as well.

Does anybody have any advice?

fiveyearplan

If you aren't yet committed you need to be before doing it. Have you spoken to one of the debt charities like CCCS or National Debtline. You will really feel better once you've spoken to them and know all your options.

Once you are sure then stop paying your DMP and any other consumer debts. Keep paying priority like utilities and council tax though.

If you are worried about being hassled, yes they will start ringing. I didn't answer my phone before 9pm daily and if they ring on your mobile you can always recocnise the number and just don't answer. It is a small price to pay to get rid of all the debt and worry.

Also, I think (others may correct me here!) if you stop paying your DMP they may be keen to make you bankrupt saving you the money!

dalip

Hi and welcome.
1. Who do you do your DMP with?
2. have you spoken to them about bc?
3. You have to have been advised by the correct legal advisors to go bc.
4. if the likes of CAB,CCC's or NDL reccomend you go bc,then stop paying your DMP and use that money for your bc fees.
5. Ring your local court as the amount of people going bc is such,that is sometimes a wait of up to 6-8 wks.
6. bc is not an easy option there is a lot more to it that most people realise.



All that said if bc is for you we will help you though whatever you need help on. Just shout.D

lxpeanut

I think I am committed or at least once I get over my nerves I will be. I've emailed CCCS about stopping my payments. Its the cowards way I know but I just can't face talking to someone right now.

shadowdragon

As mentioned first port of call is one of the debt charities, they give free impartial advice, and there advice is needed as the judge will ask you if you have taken such advice and by who.

Once decided that BC is the way forward for you, stop paying your dmp, and any other non essential creditors (keep paying CT, Rent, Elec and GAS ect) and use that money to save up for the fees and court costs.

Once you have decided to go BC ring your local County Court and find out what system they have, some are appointment based (and can be a long time before an appointment is available) some are drop in on certain days.

From what I have read its v unlikley that a creditor will make you BC because of the costs. Seems is only the tax office and the CT that seem to do that as it cost them approx three times as much to make you BC as it would for you to go BC yourself.

Chin up, and keep asking.

Shadowdragon

Edit - Dalip beat me to it

lxpeanut

dalip wrote: »

Hi and welcome.
1. Who do you do your DMP with? CCCS
2. have you spoken to them about bc? I haven't spoken to them but I have emailed them. I'm feeling a bit too fragile to speak to them today.
3. You have to have been advised by the correct legal advisors to go bc. There advice when I first went on the DMP was to go bankrupt it was me that chose to carry on my wages have risen a little since I started but not enough to make me solvent.
4. if the likes of CAB,CCC's or NDL reccomend you go bc,then stop paying your DMP and use that money for your bc fees.
5. Ring your local court as the amount of people going bc is such,that is sometimes a wait of up to 6-8 wks. It will take 4 months to raise the fees I think but thanks I'll check with them what the wait is so I can get going as soon as I've got the money.
6. bc is not an easy option there is a lot more to it that most people realise.

All that said if bc is for you we will help you though whatever you need help on. Just shout.D

Thanks for all your advice.

blueopal5577

I'm in a similar situation. I dont have the answers but be aware you're not alone. If you can, work with CCCS. If theyre pro your bankruptcy, maybe you could explain ur fear (justified) and then get them to renegotiate your DMP, say to £1 per creditor. Might keep creditors away and give you room to save?

fiveyearplan

To be honest, I wouldn't bother renegotiating. Just do it.

UptheCreek_3

Hi there! I can confirm the cccs put my mind at rest with confirming that I should go BC, but its so much more difficult to stop when they say stop paying creditors to raise the fee. I think a good dose of cbt would help. Visualising your goal, focusing solely on the advantages and freedom from the shackles of debt, then keeping focused and determined on following through with it...very scarey, but the people here are simply great on guidance and support...I wish you courage and peace of mind!

blueopal5577

5 year plan, it depends though how long it will take to save the money. If its a couple of months, great but if lxpeanut is only paying a small amount, it'll take longer and the stress of the letters, calls, visits can be awful depending on how well you cope with that. For me, not well!

Although if you can stop and get it done quickly, it'd be great.

peachyprice

Ixe,
I know how daunting it is being frightened to answer the phone, but in 4 months time that could all be over, FOREVER.

You can get your home phone number changed once for free, get a new sim & number for you mobile, and a big box by the door for all the letters!