First time here - help please

Pickle29

Hi
I am in big time debt, looking at the advice given on here and dont know what to do but....

Can anyone tell me what are the implications on your career if. You have a DMP or IVA or bankruptcy? I work in finance - will I lose my job?

Could I contact my creditors etc by myself to look at reducing payments etc. without going down the formal routes?

What effect will this have on my credit rating?


Please help I am worried sick, any help gratefully received
Thanks:(. .

Angry_Bear

Pickle29 wrote: »

Hi
I am in big time debt, looking at the advice given on here and dont know what to do but....

Can anyone tell me what are the implications on your career if. You have a DMP or IVA or bankruptcy? I work in finance - will I lose my job?

A DMP will not have an impact as it is an "informal" arrangement (i.e. not backed up by a legal agreement). An IVA or bankruptcy may have an impact, you should check with your employer or regulatory body. I believe (although by no means certain) that it is rare for either Bankruptcy or IVA these to actually result in losing your job.

As I understand it, your financial situation is probably much more relevant in deciding what route is best for you. Have you had a look at the DebtRemedy tool on the Stepchange website to see what it recommends (just a guideline mind you).

Could I contact my creditors etc by myself to look at reducing payments etc. without going down the formal routes?

Yes, this it technically a self-managed DMP, and strongly depends on the type of person you are. Some people would prefer to have someone like StepChange or Payplan manage a DMP and deal with creditors on their behalf (NEVER use a fee-paying DMP provider). Some people would prefer to make their own arrangements.

What effect will this have on my credit rating?

Generally speaking, your creditors will normally default you a few months after you stop meeting your contractual minimums. The defaults will ruin your credit rating but will drop off 6 years after the date of default (so the sooner the companies default you the better!)

With a DMP, after 6 years your credit file is clean, even if you're still paying*.

I'm not sure what about the details for IVAs or bankruptcy except that you will be legally obliged to declare them forever if asked "have you ever had ...".

Please help I am worried sick, any help gratefully received
Thanks:(. .

That's pretty normal. Have a look at the debt free diaries, you can see people starting diaries while in a terrible state and the relief they feel once they're back in control again. Hopefully that will give you some motivation & confidence .

*I've seen some people say that this is different if creditors use an "Arrangment to Pay" marker rather than a default, then it would be 6 years after the END of the DMP. However, I'm not sure if you can challenge this and force the company to place a default.

debtmummy10

Pickle29 wrote: »

Hi
I am in big time debt, looking at the advice given on here and dont know what to do but....

Can anyone tell me what are the implications on your career if. You have a DMP or IVA or bankruptcy? I work in finance - will I lose my job?

Could I contact my creditors etc by myself to look at reducing payments etc. without going down the formal routes?

What effect will this have on my credit rating?


Please help I am worried sick, any help gratefully received
Thanks:(. .

if i were in your position i would make an anonymous call to HR to see if you are allowed to go bankrupt or enter and iva in your company??
If you put up an SOA we can look over it and see where you can cut costs etc, then you will have a better idea of what you have left each month to throw at debts. then you will see weather an IVA or DMP is better for your situation.
hope this helps:cool: