DMP or Bankruptcy? No house.

laura2481

PAULneedsHELP wrote: »

Hi, we,ve been paying into a dmp plan for 18mnths but have stopped paying 3months ago as seems endless, and £25 of £90 monthly fee going on company fees. We would like to consider bankruptcy but are scared of losing our people carrier worth approx £2000. Any ideas? hanks Paul.

Hi! Does this mean you are using one of the companies which charge you for their services? If so you could do a DMP with payplan who do not charge you and then all the money you paid woud be going to the companies you owe...
There are other companies besides payplan but I can't remember their names- here is a link to more info: http://www.payplan.com/

Toffee_Penny

Hi Paul

try the debt remedy on here http://www.cccs.co.uk/

CCCS are a charity and will not charge you a fee if you decide to set up a DMP with them.

hope this helps?

PAULneedsHELP_2

I can,t remember who,s who,s debt anymore they seem to change names every few months. Think its about 50/50. We were paying a fee charging company but stopped 3 months ago and asking advice as where or what not do next. We havent put down haircuts as wife is a hairdresser but i suppose i cud and remove sky. Wink Wink.

Fire_Fox

You can cheat the system as much as you like, but you are only cheating yourself. Many of the regulars will tell you that if you carry on prioritising luxuries over essentials you will end up back in debt. Too many DFWs have been in this position more than once, it's only when we live within our means that the cycle stops. If you wanted, you could do a DMP the MSE way and save enough to make full and final offers early.

Bankruptcy can be the most incredible relief for those whose mental health is suffering with the debt, but you will never be free of the decision. You are coming across as looking for an easy way out without having to adjust your lifestyle - why is your people carrier and Sky your chief priorities? I bet you are a brilliant dad, something that money can't buy.

PAULneedsHELP_2

Certainly don,t see BR as the easy way out but how long can a couple argue without breaking up and kids having a weekend dad. Its a hard decision. Yes we messed up and have been trying a dmp for 18months and there still no light at the end of the tunnel. Sometimes i could just run away and not come back or worse but i don,t. You see these MP,s fiddling expeneses while we struggle on and for what. So we can keep getting punished. How many people on this site do you think smoke but nobody ever tells them they can,t afford it. Really wish it would all just go away.

Tixy

I think the water is a little muddied as to what you are after.
There are 2 different types of SOA's (well actually there are many). Firstly you need to do an upfront & honest SOA of what actually comes in and goes out. From this people will advise you if they think you are overspending or think we know how you can get things cheaper.

From this SOA you can make a decision as to what is the right route for you, be that a free (non fee charging DMP), an IVA or bankruptcy. To help you make this decision contact one of the free debt advisors, I'd recommend CCCS. They will help you impartially and honestly appraise your situation and chose the right option for you. You need to show them you 'real' SOA. They will be on your side so no need to hide things from them.

If you decide on a DMP CCCS will advise you on where to tweak your SOA as to what is and isn't likely to be accepted by creditors.

If you decide that bankruptcy or an IVA are the way forward, then the SOA you submit with your bankruptcy probably will have various 'adjustments' for what is and isn't allowed. Over on the bankuptcy board they will advise as to what is allowed and what is not. You are likely to have to cut back on some of these expenses if you choose bankruptcy, such as SKY for example. You may also be able to increase some pots to cover some extra items you need in other areas.

You also need to look carefully at what debts belong to each of you. If you choose bankruptcy for one or the other of you then this is vital information. It may be that it makes sense for just one of you to go bankrupt.

Tixy

PAULneedsHELP wrote: »

How many people on this site do you think smoke but nobody ever tells them they can,t afford it. Really wish it would all just go away.

I can recall 3 SOAs on this board in the last week or so where people were told they can't afford to smoke, advised to cut down the amount the spend or switch to cheaper rollups or given the details for free quit support services.

But concentrate on your situation and what you need to do for your family. I know it can be tough but I feel sure you'll feel better if you speak to CCCS or one of the other free advisors.

Paulgonnabedebtfree

I'm pretty sure that I read on the forum that you must have £100 a month spare for creditors to qualify for a DMP so not sure how you have already got one.
I do wonder if bankruptcy is the better option.
Perversely, it does appear that your credit file might be tidied up sooner with a BR as it seems to be 6 years from the last payment of whatever repayment plan you go for. BR discharge would occur much sooner than the end of a DMP.
Don't take my word for all this. I'm only interpreting stuff I've read around the forum so may be totally wrong.

Tixy

I think the £100 available for debt repayments for DMP is the minimum amount that the free debt advisors set.

The fee charging companies, like the one the OP was obviously using will accept less than this. There is easily enough space in the SOA above to free up enough to have £100 left to be eligible for a free DMP.

PAULneedsHELP_2

Hi, sorry lost my head a bit then. What do you mean by only 1 of us go BR? The 1 with the highest debt in there name and pay other by DMP? I tried to give an honest SOA first time and others have advised me where to tweak it. Thanks for the advice its much appreciated. Paul