Bankruptcy an option?

snowball1_2

Hi guys already asked this question on another part of the forum but thought I would raise it in the correct part of the forum

Basically I am with cccs on a dmp and have been for around 18 months. I owe around 43k to around 11-12 creditors. I pay £75 a month shared out to all of the creditors.

I have recieved 3 defaults (somtime ago) and am just plodding along paying the £5-8 each month to the creditors without any real hassle or stress from these creditors, which I know I am quite fortunate (when reading some people experiences).

I have decided to get my act together just recently and I want to clear this debt asap. I have been working a second part-time job for around 13-14 months which means my income has been inexcess to what I have declared to the cccs and therefore the creditors.

I am thinking due to such a hugh debt I would be suitable for bankruptcy but dont want to land my self in the cack for not being honest, as by looking at my bank statements you can clearly see that I have been earning alot more than declared.

Can anyone advise?

Thanks...

dalip

How long have they predicted it would take to clear the debt at £75 a mth?.Have your creditors frozen the interest?.Dx

snowball1_2

dalip wrote: »

How long have they predicted it would take to clear the debt at £75 a mth?.Have your creditors frozen the interest?.Dx

To be honest I cant remember but it was a very very long time

I do believe my last review in feb, they said I would need to at least raise from £75 in my next review due in feb 09.

All creditors have frozen the interest apart from, Barclays and Cooperative Bank I believe....

peachyprice

When you say you've been 'earning more than you've delcared', who haven't you been declaring it to?

Scarlett.1974

peachyprice wrote: »

When you say you've been 'earning more than you've delcared', who haven't you been declaring it to?

I assume snowball means CCCS who have been administering the DMP.

I'm not sure if you would be in trouble with them to be honest - a DMP isn't a legally binding agreement, so I wouldn't have thought it would be too much of a problem It could maybe be said anyway that the extra you were earning was being swallowed up by inceases in gas/electricity, food, fuel etc etc..........

fiveyearplan

I can't see how it would make any difference to BR because I can't recall any question like that on the BR forms.

snowball1_2

Ok cheers guys, so bankruptcy is an option then?

What about when they look into my bank statements and they wonder why I wasnt paying or trying to make extra payments to my creditors, with the extra income?... or, could I say (like someone mentioned) that I maybe owed my father some money or the money was being swallowed up by bills?

fiveyearplan

I definitely wouldn't say you owed your father money because it will look like you have been favouring one creditor over another and you don't want to get him involved. To be honest I don't think the OR will know what income you disclosed to the DMP people and if he did the best thing is to just be honest. Of course if you were BR and had an increase in income you would definitely need to let the OR know.

snowball1_2

fiveyearplan wrote: »

I definitely wouldn't say you owed your father money because it will look like you have been favouring one creditor over another and you don't want to get him involved. To be honest I don't think the OR will know what income you disclosed to the DMP people and if he did the best thing is to just be honest. Of course if you were BR and had an increase in income you would definitely need to let the OR know.

If I went bankrupt with cccs helping me do this wouldnt they then know that I was not being truthful?

My mate mentioned to me in work that it could be deemed fraudulent that I was not informing the cccs and my creditors that I had extra income, is that correct? hope not otherwise bk would def not be an option

peachyprice

You don't need CCCS to help you go BR, once they've advised you that that it the best option you can go it alone. There's always someone here to help if you get stuck with anything.

Did you have loads of money left over every month? Or were you just about getting by?

To not have told CCCS about extra income is not fraudulent because a DMP is not legally binding. Your creditors were able to demand more money at any time and take legal action against you, just the same as you were free to stop paying at any time.

december

I had a token payments agreement with some of my creditors but to be honest the official receiver wasn't interested in that. They tend to be interested in why you took the debt out in the first place, what was it spent on, when was it taken out and what do you earn now against your outgoings. To be honest I wouldn't worry about it, although that's easy for me to say.

December