Bankruptcy, IVA, DMP the way to go?

Bogster

Hi there, complete newbie here, I have approximately £20,000 of debt that has been in default with various creditors for 18mths, I have largely ignored them. I was unemployed for this time and unable to make any repayments. I have a shared ownership house 60/40 split, my first home. I am married (just... as in the stress has been an awful burden for my wife) The circumstances of my unemployment meant that it was near impossible to secure another job in my field. I have now secured a job but for reasons I cannot divulge here it is not secure by any means. Now I want to sort this out properly.

I have looked into various options to sort out my debts but am still confused. I did once set-up a DMP but was unable to continue it (and they charged more than some of the minimum payments to my creditors) and anyway that would have taken maybe 8 years to sort along with which my credit rating (already dead in the water) would not recover for a long long time ( i don't want to be fifty before I can get credit for anything), so that seems like it's not an option.

I looked at an IVA however I approached an insolvency practitioner off of this site where they told me that I would have to pay a minimum of £250p/month, this would be seriously difficult for me to deal with and they hurriedly assured me that "this would be the minimum" anybody (any insolvency practitioner) would accept in a month. (A note here : this company that I got off this site keep pestering me, I am wondering how much of that £250p/month goes to them, given that they can afford to send people round the house to see you and call me at least 4 times a day)

I looked into bankruptcy which seems on the face of it an ideal solution except for the fact that I would lose my home. So I am stuck like an Ostrich with my head in the sand, confused and not knowing what to do, frightened to make a decision, can anyone help with this and if they can where to turn to?

Thanks for your time in reading this

yellowmonkey

Well done for posting. :T

Could you post your SOA. If you look on the first page there are 'stickys'. If you look for posting SOA the info you need will be there.

Have you contacted Payplan/CCCS. These are FREE and are very good and could give you advice.

Post your SOA and then the wise and wonderfull will be along to give you some idea of which route to take.

Good luck

ym

hypno06

Hi there, I would definately suggest calling one of the free companies - CCCS or Payplan, or make an appointment with the CAB to go through your options. These people will offer you good advice, and if a DMP is they way forward for you they will not charge you, meaning that every penny you pay goes straight off your debts, not to the company arranging things for you.

Also, a read of Southernscouser's sticky at the top of these boards is a really good idea for newbies and if you feel able to post your statement of affairs having read it then the great and the good of the DFW community will be happy to see if there are any areas we can suggest changes in.

Welcome to MSE!