Please Help - Bankruptcy, IVA or DMP?

worrygirl

Hi

on a DMP it is advised that you stay with the agreed payment as if you have more one month and pay your creditiors they think you will have that amount extra every month and might get a bit jumpy.

Best way is to be strong with yoursef and open up an ISA or saving account to pay this 'extra' monies you have into it. (just dont be tempted to grab into it if your short one month) Then when you have a nice amount in there i think they say about 30% of your debt as a guide, you can start trying to F & F settle.

Deep_In_Debt

As worrygirl says, it's best to stay with the agreed amount as it could antagonise creditors and they may think that you can afford more than you can. I saved some money whilst on my DMP and was able to make some F&F settlements instead. I found it easier to negotiate better deals when the debts were passed to Debt collection agencies as the original creditors wouldn't accept less than 70% but DCA's accepted 45% and 50%. Sometimes the debt will get passed on quickly and sometimes it may take a few months before that happens.

Good luck.

RAS

oksanauk wrote: »

Monthly Income Details
Monthly income after tax................ 1570
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1570

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 215
Management charge (leasehold property).. 0
Council tax............................. 80
Electricity............................. 130 - this is massive, go round and turn off everything apart from the fridge and freezer, and keep it turned off. Instal energy saving lamps in your frequently used rooms and invest in a hot water bottle.
Gas..................................... 0
Oil..................................... 0
Water rates............................. 15
Telephone (land line)................... 50 - this is huge again,
Mobile phone............................ 30 and this - cut your contract or go PAYG
TV Licence.............................. 4
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 200 - if this is for 1, you should be aiming for £120
Clothing................................ 50 - you simply cannot afford this - stop and sign up for freecycle.
Petrol/diesel........................... 150 - do you really, really need the car?
Road tax................................ 15
Car Insurance........................... 30
Car maintenance (including MOT)......... 25
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 65 -if you do a DMP, IVA or go Bk, you will not be allowed this
Medical (prescriptions, dentist etc).... 50 - this is costly, get a prescription deal
Pet insurance/vet bills................. 10
Buildings insurance..................... 0
Contents insurance...................... 10
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 15
Entertainment........................... 30 - cut this out
Holiday................................. 100 - you simply cannot afford this
Emergency fund.......................... 25 - or this
Total monthly expenses.................. 1309

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured Debt

Unsecured Debts
Description....................Debt......Monthly...APR
Amazon.........................3647......0.........0
Amex...........................2500......0.........0
Capital One....................4660......0.........0
Nationwide.....................1000......0.........0
Post Office cr card............2550......0.........0
Morgan Stanley.................2800......0.........0
Mint...........................8500......0.........0
Lloyds 2.......................5850......0.........0
Lloyds 1.......................4100......0.........0
Halifax Overdraft..............2500......0.........0
Halifax........................8600......0.........0
Egg............................9000......0.........0
Coop...........................6500......0.........0
Total unsecured debts..........62207.....0.........-

Monthly Budget Summary
Total monthly income.................... 1,570
Expenses (including secured debts)....... 1,309
Available for debt repayments........... 261
Monthly UNsecured debt repayments....... 0
Surplus(deficit if negative)............ 261

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total Secured debt...................... -0
Total Unsecured debt.................... -62,207
Net Assets.............................. -62,207

You have got over £500 of unnecessary expenses in there that could go towards your debt if you want to, plus possibly £100-150 if you ditch the car.

You also need to up your income in little ways (like clicks and surveys, or part-time employment.

worrygirl

just a gentle bump

tallyhoh

Are these expenses half? If not then you should be putting down the half that you pay or put your partners contribution in to balace things.

Regards the cheque to your landlord--you could pay by standing order or you partner could send a cheque. Believe me, the landlord doesnt care whose name is on the cheque as long as it clears.

ticklepenny_2

oksanauk wrote: »

Monthly Income Details
Monthly income after tax................ 1570
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1570

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 215
Management charge (leasehold property).. 0
Council tax............................. 80
Electricity............................. 130- Definitely check this out! as it seems very high.
Gas..................................... 0
Oil..................................... 0
Water rates............................. 15
Telephone (land line)................... 50
Mobile phone............................ 30 - Go PAYG!
TV Licence.............................. 4
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 200 - Single Person DMP Guideline £145 (Lidl/Aldi/Netto help)
Clothing................................ 50 -£20 spent in Charity shops/Primarni goes a long way
Petrol/diesel........................... 150 - Liftshares available? this would share the cost out
Road tax................................ 15
Car Insurance........................... 30
Car maintenance (including MOT)......... 25
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 65
Medical (prescriptions, dentist etc).... 50 - PrePayment Certificate is about £10pcm
Pet insurance/vet bills................. 10
Buildings insurance..................... 0
Contents insurance...................... 10
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 15
Entertainment........................... 30-Guideline of £10 per person on a DMP
Holiday................................. 100- Not allowed on a DMP although Bankruptcy is more leaniant and tends to allow more.
Emergency fund.......................... 25
Total monthly expenses.................. 1309

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured Debt

Unsecured Debts
Description....................Debt......Monthly...APR
Amazon.........................3647......0.........0
Amex...........................2500......0.........0
Capital One....................4660......0.........0
Nationwide.....................1000......0.........0
Post Office cr card............2550......0.........0
Morgan Stanley.................2800......0.........0
Mint...........................8500......0.........0
Lloyds 2.......................5850......0.........0
Lloyds 1.......................4100......0.........0
Halifax Overdraft..............2500......0.........0
Halifax........................8600......0.........0
Egg............................9000......0.........0
Coop...........................6500......0.........0
Total unsecured debts..........62207.....0.........-

Monthly Budget Summary
Total monthly income.................... 1,570
Expenses (including secured debts)....... 1,309
Available for debt repayments........... 261
Monthly UNsecured debt repayments....... 0
Surplus(deficit if negative)............ 261

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total Secured debt...................... -0
Total Unsecured debt.................... -62,207
Net Assets.............................. -62,207

Rental agreements should state if they are effected by Bankruptcy (most aren't)
Cheques can be issued from basic accounts by the bank itself on request. (If you ask in your local branch they should be able to print one out.) I do this as I dont have a cheque book!

Hope this helps and good luck