Has anybodygot the answers?

Hello all, i am £30,000, in debt, i have been paying a debt management company £100 a mth for the last to years, i have just been told it will take 30 yrs to pay off !, i am married with 3 children, we live in a rented property, my wifes credit file is ok, mines crap, we have a car on finance ( in my wifes name ), we have a joint bank account a "visa electron", we have no other finance. i get £800 a mth wages paid into our account, my wife has here wages and we both have tax credit and working tax paid into it...how would bankruptcy affect our money what gets paid into our account??..also how would it affect my wife?.would it affect here credit rating etc..?....everything in the house is paid for but could the baliffs come and take our tv etc..??...any anwers to the above questions would be a great help,..thanks for listening.

Comments

  • System
    System Posts: 178,071
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    Community Admin
    Hey up

    Hats off for posting. I presume that you have the seen the SOA thread by SouthernScouser that is a 'Sticky' at the top of this board? If not, here is the link: http://forums.moneysavingexpert.com/showthread.html?t=107280. Basically post your incomings and outgoings so people on here can help you to refine where you spend your money and how much you can cut back. You need to ditch the fee charging company and speak to Payplan or CCCS. Links can be found here: http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1103204730,72152,#help. 30 years sounds a bit extreme and the £100 per month you are paying would explain why - more money in their pocket. Give CCCS and Payplan a ring and watch your new world unfold.

    Lenny
  • wifeforlife
    wifeforlife Posts: 2,734
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    Forumite
    Well done for posting! Especially today, start 2007 as you mean to go on. I myself initially when dealing with debts used to pay a company to pay my debts, but I've sinced changed to payplan and would suggest you do the same. My creditors actually agreed with me and prefer dealing with payplan or cccs.

    Put your SOA up and we'll all try to help you, whatever you do dont panic

    Cath
  • Biffa
    Biffa Posts: 321 Forumite
    I agree with the others - you need to post a complete SOA so we can have a look. We may find things to cut back on that you haven't thought of.

    Also, contact either Payplan or CCCS. Paying a debt management company is a rip-off, - the first months payment goes to them entirely and after that a portion of each monthly payment, so very little actually goes towards your debts.

    Well done for posting though - you'll get loads of help on here, and take a look at the old style board for tips on cutting back on grocers etc.

    Good luck, and Happy New Year.
    BCSC # 9 and proud! :beer:
  • debt23
    debt23 Posts: 153 Forumite
    Hi,

    I think the anwser to this one all depends on your future plans etc.

    I mean, whilst the objective on this board is usually to be debt free, if you can manage the 100 a month ok, then the time period to repay it can (and I only say can) be irrlevant.

    Im on a DIY DMP, and even paying back over double the amount you pay,Ill still take 30 years to clear it all - which is a bit of a downer - but if I could reduce my outgoings for my debts to 100 a month - I think id feel debt free anyway!

    But I realise this may not be your case - as it still amounts to an eighth of your income.

    Also maybe your planning to get a mortgage at some time?

    DMP run by these other companies are a bit of a rip off, but now that you are on it, perhaps quitting it and going the DIY or charity DMP is not the best route.

    Does the company shield you from all creditor calls and is all interest now frozen?

    If yes to the above, then although they are taking a cut, at least things are being sorted.

    Does the 100 a month pose problems?

    Above all - I wouldnt be too quick to go down the bankrupt route.

    Give us a more detailed update on your situation and we can (all) try to help out more.

    By the way, Ive kinda focused on the 'money' side of things in this post, but id be the first to agree, there is a pride that comes from being debt free that you really only appreciate when you've been 'in the hole'.

    All the best

    Debt23
    Total debt: £69,887 DFD: 2028

    "Is there anybody in the World that I don't owe money to?"
  • dancingfairy
    dancingfairy Posts: 9,069 Forumite
    Just wanted to say hi and welcome :hello: Perhaps going through Payplan or CCCS would help - after all they don't take any of your monthly repayments it all goes to the creditors. Pop up your SOA if you can and we'll help where we can. I'm sure we can shave your Debt Freee Date quite a bit.
    Making my money go further with MSE :j
    How much can I save in 2012 challenge
    75/1200 :eek:
  • Hello all, i am £30,000, in debt, i have been paying a debt management company £100 a mth for the last to years, i have just been told it will take 30 yrs to pay off !, i am married with 3 children, we live in a rented property, my wifes credit file is ok, mines crap, we have a car on finance ( in my wifes name ), we have a joint bank account a "visa electron", we have no other finance. i get £800 a mth wages paid into our account, my wife has here wages and we both have tax credit and working tax paid into it...how would bankruptcy affect our money what gets paid into our account??..also how would it affect my wife?.would it affect here credit rating etc..?....everything in the house is paid for but could the baliffs come and take our tv etc..??...any anwers to the above questions would be a great help,..thanks for listening.

    To answer your bankruptcy questions for you -

    Bankruptcy would not affect your wife's credit rating at all.

    Your tax credits will be unaffected.

    No the bailiffs would not come and take anything from your home.

    Yes, you would have to declare if you had a £1000 state-of-the-art tv, or a £3000 computer, or some Van Gogh paintings hidden in your attic. In general terms, most people keep everything that they own.
    A car which is needed for work/family reasons will be allowed but you may have to swap a £5000 car for something cheaper.

    Have you contemplated an IVA in order to get out of debt in 60 months? Just a thought, another option for you.
  • debt23 wrote:
    Hi,



    DMP run by these other companies are a bit of a rip off, but now that you are on it, perhaps quitting it and going the DIY or charity DMP is not the best route.




    Debt23
    Sorry to disagree here, but you've potentially got to pay this DMC for another 30 years & these fees could be put towards your debt. If you wish someone to manage your DMP for you, then go down the CCCS, Payplan, or CAB route. But, in the period that it's being set up, send payments directly to your creditors & inform your new DMC of your actions. Alternatively, you could set up your own DMP & divide the fee that you're paying now evenly between your creditors. They're usually quite happy to do this because you'll be increasing your payments to them. Make sure all future payments are done by S/O so there's no chance of you missing a payment.
    Donedoingdebt Lightbulb moment January 2000. Debt at highest approx £102,000. Debt now (October 2009 - absolutely fork all!!!):beer:
    CSA case closed on 02/09/10 :beer::beer:
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