Whats better a DMP or a Bankruptcy

Quassi75

Hi,


I've now been on my DMP for the past 4 years and about to hit half way.. I always have this niggle that if I had filled for bankruptcy, my debt would have been done and sorted by now.


What's everyone's thoughts on this?

Cheers

-taff

Don't know really. Why did you choose not to go bankrupt? And why are you thinking about it now? It's not true that it would have been sorted by now either, because your credit would have been impacted by it....
Are you having an 'it'll never end' moment?

HappyMJ

Quassi75 wrote: »

Hi,


I've now been on my DMP for the past 4 years and about to hit half way.. I always have this niggle that if I had filled for bankruptcy, my debt would have been done and sorted by now.


What's everyone's thoughts on this?

Cheers

A bankruptcy is much worse in the short term (first year) as you're left with very little money but in long term it can be better than a long running DMP.

If you own a house a bankruptcy may cause the house to be sold to release equity to repay your creditors. A DMP will never require the house to be sold even if you have a lot of equity.

There's pro's and con's of each.

sourcrates

I don't understand why people who would qualify for Bankrupcy don't do it, if you have no assets, and large debts, then it's a no brainer.
To me, spending years and years on a DMP is a pretty soul destroying prospect.
To my mind, the quicker it can be resolved, the better, I spent 6 years on an IVA, when I should of declared Bankrupcy, but then you live and learn, don't you !!!

fatbelly

Good article here on the possible disadvantages of bankruptcy

http://debtcamel.co.uk/debt-options/bankruptcy/

Most of these problems are exaggerated by those wanting to sell an IVA or DMP.

I have also heard of firms offering to help with bankruptcy form filling at a cost of £500. This is not needed - the forms are lengthy but straightforward.

The Official Receiver fee of £525 can often be met with charitable help and an EX160 will get part or full remission of the £180 court fee

Quassi75

Well, I don't own a house, I have no assets except for a TV and computer and my car is worth just under £1k (Renault from 2007..) So Ive sent my DMP a quick email asking what the best solution would be..

sourcrates

Quassi75 wrote: »

Well, I don't own a house, I have no assets except for a TV and computer and my car is worth just under £1k (Renault from 2007..) So Ive sent my DMP a quick email asking what the best solution would be..

You would be better off giving National Debtline a call tomorrow.
Who is your DMP provider ?
Are you paying a 3rd party for this service ?

Quassi75

I use Stepchange and have been using them since the start.. I know they are super busy, so still waiting for a reply from them on this, as can't get through by phone ;(

fatbelly

Giving National Debtline a call was a good suggestion.

Stepchange are unlikely to say 'you should have gone bankrupt 4 years ago', even if that is the case. ND can be completely impartial.

dancingfairy

To a certain extent what you should have done 4 years ago is irrelevant. Perhaps you were 'missold' or didn't understand but proving it and getting any time of redress may be difficult.
You are where you are and need to look at the options available to you now. You may find your creditors may accept some sort of settlement offer, or you may find a dro or bankruptcy is your best option. It might be worth taking a bit of time to assess where you are, what your balances are, who has frozen interest (and who hasn't ) and where you go from here. I'm not suggesting you stop paying your DMP while you do this though.
Df

[Deleted User]

bankruptcy is a far better option for you, given you have no realisable assets.