Is It Really Worth It??

Parlesse

I'm a regular lurker around here but don't post very often - been on a DMP since December 2005 and have approximately another two to three years to go when I'll be debt free:T However, one of my creditors has been in touch asking for a review of my circumstances and despite the fact I've never missed one payment since I started, has said that they're seriously contemplating taking me to Court to recover the remainder of the debt which is around a thousand pounds.

I found out tonight that one of my friends, who has substantial debts of around twenty grand, has made enquiries about bankruptcy and has been told that this is a definitely possibility for her and probably her best option as she would be released after one year with all her debts written off and would be free to obtain further credit at that point.

I am sitting here wondering to myself why I bother, really. I've tried so hard but am rapidly losing heart especially when I hear stuff like that While I'm glad my friend is getting her finances sorted out I find it hard to see what she's learning from the experience. I'm also wondering what the point is of me continuing to try so hard to become debt free when all I seem to get is grief about relatively small amounts while somebody who has significant debts is given a lot of support and what appears to be a free ticket out of her mess.

I give up - can somebody tell me what the point really is cos I don't seem to have a clue any more :cool:

fatbelly

Parlesse - the important thing is to get debt-free.

If you had a debt-free date twenty years in the future, I'd be gently suggesting that you check out solutions other than a dmp. But with a two-three year timetable, you're probably doing the right thing.

Bankruptcy is a sledgehammer approach and if you get an income payments order that will last three years. If you get a bankruptcy restriction order, your bankruptcy can be extended.

The court threat is probably an empty threat. You say that creditor is owed about a thousand. What's your total debt at present?

RAS

Hi

Bankruptcy is the right solution for some people but it has consequences. You have to declare it (and IVAs) for ever and it can affect your ability to access the best deals for mortgages, insurance, private rentals, and other accounts for a long time.

I hope your friend has been in touch with a debt charity? And that she realises that although she can get "credit" after 12 months, legally, in practice her chance of even getting a mobile phone account are poor? A mortgage, possibly and probaly at a higher rate, but unsecured debt, no chance.

Spend a bit of time reading the BR forum if you are considering this option. I have huge amount of respect of just about everyone there but would not choose this option if others were sensible.

Lensman_2

I am not (yet) Bankrupt. But I do spend most of my time on the BR board - that's mostly a reflection of the seriousness of my circumstances.

During my time there, I have formed the opinion that bankruptcy is
1. Life changing
2. To be avoided if at all possible.

Scarlett's diary is long, but a good story of going BR. I reccomend anyone who is contemplating it to read it. I agree with RAS, have a read on the board too.

Scarlett's Diary clicky.
BR board clicky.

elsie52

Hi Parlesse,

I know exactly how you feel, and I am sure nearly everyone on this site has felt the same at some time or another. Our creditors, on the whole, are okay, but after saying that we are paying them quite a decent amount, but its quite annoying when you realise that some of them are still continuing adding interest charges, and they won't budge on that. I understand that we spent the money and we need/want to pay it back, but by god, they don't help when they are still charging £100 + in interest.

That's when I stop and think, if we had gone bankrupt, they wouldn't have got a penny. We could have done, we owed £74k and have no assets. We were already renting from local authority, so housing was secure, but for us we waned to repay everything that we owed. We didn't live a life of luxury, we don't have that latest TV, gadgets, car. What we did have was three children going to University, me taking a less paid job due to ill health, and that's basically what got us into this situation.

We didn't want to go down the bankruptcy route. We have grown up children now with families of their own, we have elderly parents, and we didn't want to tell anyone of our troubles, and believe me, they would have found out. So we went on a DMP and still have 3 years left, but we will get there, and to this day, NO-ONE knows our situation. We have kept everything to ourselves, so this board is a serious help to me, its the only place I can ask questions, get support and know that I am not alone dealing with this.

Do I wish that we had taken the Bankrupt route, some days yes. It would all be over now, but it wasn't a option for us personally, so I grit my teeth, and its onwards and upwards.

You will get to the end of your debt free journey, as will I, with the help of our cyber friends on this site.:T

Good luck

boo80

Parlesse, I know it's hard going, especially when you're friend seems to have an 'easy way out', but you are doing the right thing by doing the DMP. When NDL talked me through the option of BR all I kept thinking was 'I really don't want to have to tick that box that says have you ever been bankrupt' Thats FOREVER! Also, you get your name in the paper saying that you have been declared bankrupt, how embarressing is that? I'm not saying for those who have no choice BR is bad, I just think if there is another way it must be a better way. Chin up. Boo.x

bank_of_slate

Parlesse in a couple of years time when you're debt free and you're friend is still having difficulties because of the benkruptcy you'll be glad you stuck to paying it.
Who is your DMP with? Talk to them and tell them you're being hassled by one of the companies
...Linda xx

Parlesse

Hi everyone - thanks so much, you've all cheered me up tremendously. I have approximately four and a half thousand left to pay so it's head down, onwards and upwards. It has been hard but there are people a whole lot worse off than me who have coped and who have come out at the other end debt free. Like Elsie, nobody knows my situation and I have no intention of telling them so this board is such a help and a great support when you get down and fed up with it all. The laws in Scotland governing bankruptcy were changed last year and you can be discharged after a year now rather than three years as was previously the case. I did think about it but like all of you, didn't want to have to choose that option, preferring to go with a DMP and pay everything back. It just all got a bit much last night and I was so glad to come here and get it off my chest - feel a lot better today and ready to get on with things. I'm getting in touch with PayPlan to tell them about my creditor and see what they say so fingers crossed I can get things sorted. Thanks again everybody, and best of luck with your debt free journey.

RAS

Thanks for the post. Scotland is different but BR is one year here as well, just you have to declare it if you are ever asked and a lot of forms ask. it is considered a material fact in insurance for instance.

Do spend some time looking at the Boost your income, freebies, Money Saving Old style and comps forums as well.