What to do now???

1_in_10_Luke

Hi! i.m a 33years old and married with 5 kids. Having been struggling with debt for the last 4 years, i think it has finally caught up with me as in March this year i was made redundant.

Brief history:
Between 2004-2007 mortgage payments went from £500 pm to £1300 pm.
Secured loan on mortgage (First Plus) who would not let us remotgage when we had the chance ,by telling us we would have to re-apply for our secured loan (which they declined).
House was re-possesed in january 2007.
March 2009 i was made redundant.
May 2009 First Plus have been in contact chasing a shortfall of £18000 from the secured loan.

My current SOA is as follows.

£18000 - First Plus
£4350 - Barclay Card
£4200 - HSBC Gold Card
£3500 - Egg Card
£3000 - CO-OP Card
£2500 - MBNA

£35550 - Total Debt (all this debt was prior to re-possesion)

I did have an agreed payment plan with all my creditors which i am no longer to fulfil as i just have no money to spare.
Having spoken to PayPlan at the weekend we went through our SOA and although they cannot advise us what choice to make ther suggestion were to do a DMP of £112 a month for the next 29 years (minimum) or Bankruptcy.
How does Bankruptcy really affect me?
Can i be forced to pay more than the DMP £112?
What to do now??

Any advise would be good as my head is continually spinning

Thanks

1 in 10 Luke

tealady

Hi. The first thing to do is put up a full SOA (there is a link somewhere). Then the peeps on here can advise you.
Whatever you do DO NOT go to a fee paying debt management company, there are free ones who will help.

fermi

1_in_10_Luke wrote: »

How does Bankruptcy really affect me?

Mainly that your credit rating is trashed for 6 years. Also can have implications on employment if you are in the financial or legal professions.

Can i be forced to pay more than the DMP £112?

You can't be forced to pay what you don't have. One problem with paying such a small amount is that if some creditors do not agree to freeze interest/charges, then some debts may actually increase. But that is hard to predict.

What to do now??

I would suggest getting a second opinion from a least one of the organisations in my signature. I don't always trust PayPlan's advice.

What are the job prospects like in the near future for you?

Is the shortfall on the mortgage/secured loan joint?

If you want to ask questions on bankruptcy then post on the Bankruptcy & Living With It board. Loads of people there going through it.

On here, post your SOA if you feel like it. People can try and help you make the most of what you have.

http://www.makesenseofcards.com/soacalc.html