DMP into BR

Bella_Smythe

hi, does anyone know how it works if your in a DMP and then want to go BR? do you have to 'fail' the DMP like you do an IVA and if yes how do you go about that?
also would the OR look at your statement of accounts and say 'well you can afford to live' because the DMP payment is quite low, or would they take into account that your 54 and the DMP will take about a hundred years to pay off! and look at the total debt £40,000+ plus negative equity in property and realise your never going to pay it off and allow the BR because of that?
any help much appreciated x

National_Debtline

Hello there,

A DMP is an informal arrangement, as such you wouldn't have to wait for it to 'fail'. If the DMP is going to take a hundred years then bankruptcy, on the face of it, could be a much better option for you. It is expected for you to seek impartial advice from one of the debt charities or the CAB prior to petitioning. We've a useful fact sheet outlining the key aspects which you can find here:

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=01_bankruptcy

If you do have some spare money each month it is likely you'll be asked to pay that into the bankruptcy for three years, this is known as an Income Payment Agreement.

Best wishes,

David @ NDL.

Bella_Smythe

thank you for that