Facing Bankruptcy

sovilla

There is a bankruptcy clause in my tenancy agreement too but I've just not told them about it. I spoke to the OR and they said they would have no reason to contact them so I'm just leaving at that. We have just signed for another 2 years so I don't think they would want to lose that guaranteed income.

I am interested to know also why a DRO wasn't mentioned, as your debts are not that large I would think that would be a better option for you.

failingfast

My understanding is that a DRO wasn't possible because they calculated my monthly DI as £83. For a DRO it has to be £50 or less. Although my debts are just over £9k (all unsecured), I owe 18 creditors so the £83 may not repay them all in 'a reasonable amount of time'. I was paying £214 monthly on a DMP while I worked full-time but now I'm part-time and tax credits have stopped due to an overpayment which I am appealing against.

failingfast

bumping up the board

failingfast

OK, have tried to see CAB but they were closed so will have to go Monday.

Went over my SOA and found Id made a mistake! My total debt is £8896 and DI was £53 per month. I added £5 to my monthly grocery spend to try to take it under the £50 threshold for a DRO and guess what? They still recommend BR!!

I understand that if I paid the £48 DI into a DMP it would take me 15.5 years to pay it off which is something im not keen on, but surely a DRO is a better option for me??

They keep going on about ' within a reasonable amount of time' but as I understand it lasts as long as BR and stays on your credit file for the same amount of time so why BR instead of DRO????

Can anyone help/advise please? Have you been in a similar situation?

alastairq

has it anything to do with the number of creditors?

The disadvantage of a DRO probably stems from the fact that 'only those creditors named in the DRO are included.'

SO, if another creditor subsequently emerges from the woodwork afterwards, they can still pursue the debtor for what is owed.

BR catches all, regardless of whether they were identified at the time, or not.

Of course....it is also possible SC..having already had an enquiry from the OP....with a SOA....are advising BR simply because, if the figures have been massaged a little, the DRO application might be refused.

This is to benefit the OP since...a fee [£90?]....is payable, on application.

If the application is declined, the fee is lost.

failingfast

Its possible the number of creditors could be a factor, there are 16 of them, all accounted for on list of creditors.

What you've said makes sense. I can see why DRO could be refused if I've added a bit to expenses to try and meet the threshold.

Looks like BR may be the way to go!

Thanks for the advice.

alastairq

hey, why not wait to get a second opinion?

After all, you have plenty of time?

fermi

failingfast wrote: »

Went over my SOA and found Id made a mistake! My total debt is £8896 and DI was £53 per month. I added £5 to my monthly grocery spend to try to take it under the £50 threshold for a DRO and guess what? They still recommend BR!!

Possibly because your figures are marginal?

Hard to guess at exact reasoning though. Are you speaking to a particular advisor each time?

failingfast

alastair: I'm going to CAB on Monday to get that second opinion, so hopefully they'll be able to enlighten me further.

Not sure what you mean by having plenty of time though? Think it's a good idea to get this sorted quickly!

Fermi: Not sure what is meant by figures being marginal. Sorry if I'm being thick..