At a crossroad - DMP or bankruptcy

tellytots

Hi - I posted this another board and they suggested putting it on here.

I am a newbie here although I have lurked on the site for quite some time. I am in a dreadful mess financially and just don't know what to do for the best.

My DH has been made redundant 3 times in the past 5 years which has seen us plunge into dire straits. The worst time being that whilst I was on maternity leave last year he was out of work for most of the time. In order to try to provide him some security my in-laws helpde him to fund his own business so he is now self employed although earning very little regular income as yet. I returned to work quickly after having the baby and am the main earner however I am not earning enough to keep us afloat.

Here is the main problem - I stupidly :eek::eek::eek: resorted to payday loan companies to help bridge the gap each moth. At first the amounts were low and appeared to be easy to manage (I kept hoping that his business would start to bring in more) but at the end of last year I worked out that to Payday loans & my credit cards I now owe just over £12000 (I am throughly ashamed to admit that there is 13 different payday lenders in there)


I did a lot of research and went to CCS/Stepchange for advice and I think that we had decided to go for a DMP, I started gathering up everything to send to CCCS and had a bit of a rethink. I am wondering whether it would be best to go down a bankruptcy route instead? The reason I am wondering this (please don't think it is because I do not want to pay money back) is that I am being constantly called & threatend by the payday lenders and I am so worried that they will continue this even when the DMP is set up and that they will still continue to add interest so I am wondering if I will ever be free from the debt? I ahve tried sending emails/recorded letters etc. to the payday companies but it doens't seem to be having much affect.

If someone could please give me some advice I would be grateful. As it stands I have one folder full of info for the DMP & everything ready to send off to CCCS & I have another folder with the bankruptcy forms filled in (no spare money for the fees yet though).

I just want to act quickly one way or the other as I feel so stressed with the situation.

Hopelessly_Hopeful

tellytots wrote: »

Hi - I posted this another board and they suggested putting it on here.

I am a newbie here although I have lurked on the site for quite some time. I am in a dreadful mess financially and just don't know what to do for the best.

My DH has been made redundant 3 times in the past 5 years which has seen us plunge into dire straits. The worst time being that whilst I was on maternity leave last year he was out of work for most of the time. In order to try to provide him some security my in-laws helpde him to fund his own business so he is now self employed although earning very little regular income as yet. I returned to work quickly after having the baby and am the main earner however I am not earning enough to keep us afloat.

Here is the main problem - I stupidly :eek::eek::eek: resorted to payday loan companies to help bridge the gap each moth. At first the amounts were low and appeared to be easy to manage (I kept hoping that his business would start to bring in more) but at the end of last year I worked out that to Payday loans & my credit cards I now owe just over £12000 (I am throughly ashamed to admit that there is 13 different payday lenders in there)


I did a lot of research and went to CCS/Stepchange for advice and I think that we had decided to go for a DMP, I started gathering up everything to send to CCCS and had a bit of a rethink. I am wondering whether it would be best to go down a bankruptcy route instead? The reason I am wondering this (please don't think it is because I do not want to pay money back) is that I am being constantly called & threatend by the payday lenders and I am so worried that they will continue this even when the DMP is set up and that they will still continue to add interest so I am wondering if I will ever be free from the debt? I ahve tried sending emails/recorded letters etc. to the payday companies but it doens't seem to be having much affect.

If someone could please give me some advice I would be grateful. As it stands I have one folder full of info for the DMP & everything ready to send off to CCCS & I have another folder with the bankruptcy forms filled in (no spare money for the fees yet though).

I just want to act quickly one way or the other as I feel so stressed with the situation.

Hi

Please write to the companies registered or recorded delivery using the holding letter, stating you are in financial difficulties and are seeking advice. Send a £1 token payment. State that you ONLY want to be dealt with in writting and will be in touch within a month to advice them of your position. This is all inline with the OFT guidelines on debt management. This should give you some space whilst you make your decisions. There are protections with Bancrupcy but you need time to consider the implications and see if they are acceptable for you too. The months grace should give you some head space. If they still hassle you you can call the FOS to report them.

Hope that helps

HHx

tigerfeet2006

Do you own a property or do you rent?

tellytots

Hi Tigerfeet

I am in rented acc and no assets whatsoever, my car is worth around £700 but other than that nothing. One of the things that is worrying me about going bankrupt is that I don't want to affect DH's credit rating - I know this probably sounds silly and it isn't because I want to borrow any money but I am thinking that it may be useful for him to have a good rating for our future if mine is shot to pieces because of the bankruptcy.