Debt Management Plan or DRO?

antsea

Oh ok. Well I don't have anything like £600 so will have to think about that one.

Thanks a lot for your help!

Ineedaname

There are lifelong implications for going bankrupt. People take out loans/HP with repayment plans over 5 years, so 3 1/2 years isn't very long at all to pay debts off. Personally I would seriously consider a DMP first and foremost. At least then you could be debt free in a few short years without the restrictions BR would place on you for a minimum of 6 years.

antsea

The problem is, my situation is quite precarious. I am close to the limit on all accounts with hardly any credit.

I'm an agency worker and don't get paid when there is no work, and also may have unforseen expenses if ill.

Also, my rent is extremely cheap for the area so if that changed for some reason I'd be right up !!!! creek.

I hear what you're saying about the implications, but it does make sense in a way to get a clean slate now and get it under control. If I miss a payment to a creditor, charges start snowballing and the whole plan's out.

I don't know how the time figure is worked out, but CCCS said it would take about 15 years as things stand on a plan, so not sure if 3 1/2 years would work?

IF

Hi antsea, first of all we can’t recommend what you should do this is to safeguard us and yourself.

Your first port of call has to be a Debt charity, I know you have tried CCCS but do try another they will go through your options with you and if they suggest bankruptcy then come back to this board and we will help you all we can.

Please click on the blue links below:-

Main recommended sources of help:

• National Debtline - Website: National Debtline Telephone: 0808 808 4000
• Citizens Advice Bureau - Website: Citizens Advice or visit your local CAB centre (find nearest)
• Consumer Credit Counselling Service - Website: CCCS Telephone: 0800 138 1111
  

Others:

• Business Debtline - Website: Business Debtline Telephone: 0800 197 6026
• Christians Against Poverty
• PayPlan
• TaxAid - Help with tax debts.

Best wishes
If...x

Ineedaname

Antsea - I understand, hadn't realised the full situation and I agree, very precarious. Of course the decision is ultimately yours, I was just putting my thoughts across. Totally agree with Ifwishes... that you need some more professional advice, just to make sure you make the right decision at this time.

Hope you get it all sorted soon.

tigerfeet2006

antsea wrote: »

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 0

Monthly Income Details
Monthly income after tax................ 951.46
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 951.46

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 245.52
Management charge (leasehold property).. 0
Council tax............................. 101 does this include the single person discount?
Electricity............................. 20 this is very low, is it your actual bill amount
Gas..................................... 12 ditto
Oil..................................... 0
Water rates............................. 7 ditto
Telephone (land line)................... 9.79 ditto
Mobile phone............................ 7 ditto
TV Licence.............................. 0 £13
Satellite/Cable TV...................... 0
Internet Services....................... 14 only allowed in BR if essential for work
Groceries etc. ......................... 180
Clothing................................ 22 £40
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 74.96
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 26.31
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0 you need to get some, especially with accidental damage. £20 max
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0 £10
Entertainment........................... 17 not allowed in BR
Holiday................................. 0 £30
Emergency fund.......................... 0
Sundries and Emergencies................ 12 £10
Total monthly expenses.................. 748.58


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
A&L Overdraft..................920.......46........22.2
Barclays Overdraft.............3016......165.......19.35
Barclaycard....................1714.83...38.58.....27.9
Capital One CC.................151.67....5.........30.34

The above is how an OR in BR may look at your SoA.

Your utilities are very low, are you in a shared house?

Are you getting all the benefits you are entitled to? http://www.turn2us.org.uk/benefits_search.aspx

As yuo are on a low wage you will more than likely get a remission on the court fees of £150 and only have to pay the OR's fees of £450. With the way your SoA looks now you have £200 spare so you can save it in 2 months-ish.

From the Bankruptcy Help sticky
Court fee remission and forms.

• HMCS - Court fees do you have to pay them? (And guidance on completing the fee remission form). (pdf)
• HMCS - Form EX160 - Application for a fee remission (pdf)
• Example application for a fee remission based on gross annual income - EX160 (Thanks to NE Derbyshire CAB)
• Example application for a fee remission based on permitted benefits - EX160 (Thanks to NE Derbyshire CAB)
• Possible assistance with Bankruptcy costs / fees (Thanks to NE Derbyshire CAB)

I would suggest you take time to read the full sticky when you get a chance.

I also agree with the guys and recommend you get some more advice.

Ineedaname

Tigerfeet, can you confirm something for me please? I've seen you amend clothing to £40 for a single person a couple of times now. I thought it was £20 pcm per person, has it been changed? I'm about to fill in my Court paperwork in the next few days and will post up my SOA then, just wanted to check before I do though.

tigerfeet2006

The actual figure is £39 but £40 seems to be accepted. Obviously don't put to many trigger figures down.

Look at post #68 on the Bankruptcy Help sticky
https://forums.moneysavingexpert.com/discussion/1056083

Ineedaname

That's brilliant, cheers. I'll bear that in mind when I do mine in a few days.

mel12

Oh ok. Well I don't have anything like £600 so will have to think about that one.

Thanks a lot for your help!

If u decide (after taking advice) to go bankrupt, u can stop paying the debt and save the money for fees.


Do bear in mind u would be asked to pay any surplus over £20 to the OR for 3 years. (although the amount u pay can be adjusted if your income changes up or down).