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Choices
Desperate71
Posts: 9 Forumite
Hi we have unsecured debt of around £29k and according to CCCS we have £150 a month spare to pay.
Options are
IVA
Low start DMP
or Self admin
Don't want to lose our home and there is only about £10k if that equity, can't remortgage because I am not earning what I was originally so wouldn't be able to borrow enough.
Thoughts please about each option
Thank you
Options are
IVA
Low start DMP
or Self admin
Don't want to lose our home and there is only about £10k if that equity, can't remortgage because I am not earning what I was originally so wouldn't be able to borrow enough.
Thoughts please about each option
Thank you
0
Comments
-
With no interest or charges on debts, and no changes in circumstances, £29,000 at £150 will take 16 years to pay off! DMP would take along time regardless whether it is self admined or run by national debt line/CCCS. They run it for free. If DMP payments are below the mininum contractual amount you will get late payments / defaults on your credit file, so ruining your credit for atleast 6 years from defaults, then more from the late payment markers.
DMP can be speeded up by making full and final offers sometimes as low as 20%, obviously this requires a chunk of money.
For an IVA- at least £15,000 of debt;
- at least three debts across at least two different creditors;
- to be able to afford to pay approximately £200 towards the IVA every month (you can also put in a lump sum or any assets you have).
- be able to pay back at least 20p for every £1 of the debt that you owe to them.
IVA is used to protect assets, and with only £10k of equity, its not such a huge asset to protect.
Bankruptcy is an option for those where it will not affect their job like financial work (accountants, bank employees) or legal work (lawyers).
BR will wipe most debts clean (fines/student loans/gambling excluded), it will stay on your file for 6 years, you will pay £50-70 of your surplus income for 3 years, and be classed as bankrupt for 1 year.Although no trees were harmed during the creation of this post, a large number of electrons were greatly inconvenienced.
There are two ways of constructing a software design: One way is to make it so simple that there are obviously no deficiencies, and the other way is to make it so complicated that there are no obvious deficiencies0 -
Bump for others to read.Although no trees were harmed during the creation of this post, a large number of electrons were greatly inconvenienced.
There are two ways of constructing a software design: One way is to make it so simple that there are obviously no deficiencies, and the other way is to make it so complicated that there are no obvious deficiencies0 -
Thank you for your reply although not sure what you think is best, was hoping a few more would reply and give me a better idea of pros and cons but maybe later once people get in from work.
DMP will take longer, is your credit affected for the whole time?0
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