Dilema, BR or DMP

seh567

I can't decide what to do! After a meeting with CCCS re £15k debts their advice is either to start a low cost DMP deviding a monthly payment of £25 to each of my 5 creditors, they reckon this is all I have left over after living expenses and that this is a short term solution until my financial situation improves. They says that my creditors will not accept this low payment indefinately though so they have also suggested that I consider also bankruptcy. I have been unemployed for a short period but have just been lucky enough to secure employment but my basic wage is low hence the reason for the low excess of money after living expenses. However I do expect to be earning commission on installation so I should be able to earn a decent living soon. I have seen the company accounts and the business is thriving so I have no doubts about my earnings potential. In view of this I would like some advice as to whether I should take on the DMP for now and increase the payments after a couple of months if everything goes according to plan and if not then I should consider BR or would I be better to just declare myself BR now and get it over with. It just seems morally wrong if I will be earning a decent wage in a couple of months.

tigerfeet2006

Only you can make the decision whether or not you should take the BR option. The one thing I will say is if you decide on BR then you will have a legal obligation to tell the OR of any increase in income with in 21 days of the increase and the OR will take a percentage of it, this is called an IPA.

Some reading from the Bankruptcy Help sticky
Income Payment Agreements/Orders.

• IPO / IPA (Income Payment Orders and Income Payment Agreements) (IS)
• FAQ - Income Payment Orders / Agreements ( IPO / IPA ) (IS)
• OR's Case Help Manual - Income Payments Agreements (IS)
• OR's Case Help Manual - Income Payments Orders (IS)
• OR's Technical Manual - IPAs Assessment of real disposable income (IS)
• Nil tax (NT) coding/IPAs (MSE)
• Income Payments Calculator (Excel spreadsheet) (IS)

It is worth reading the first post of the Bankruptcy Help sticky.

ste69_2

Maybe try for IVA......i would strongly advise against DMP.....i did it... payed off 6000 over a year then got made redundant again...couldnt find work..within 3 month of missing payments another 2000 had been added onto my debt!!!! i went to citizens advice...then went bankrupt.....and feel alot better for it.....

tigerfeet2006

Step if an IVA was appropriate then CCCS would have recommened one. As they did not it is not ideal for this poster. An IVA is only suitable for about 5% of people.

ste69_2

OK....thanks for clearing that up for me....i still wouldnt do an DMP...but thats only my opinion...

fiveyearplan

What about a DRO?