What to do for the best

Daisy2015

Although I realised a couple of weeks back that I now have to do something about my debts I keep going backwards and forwards about whether to do a DMP or go bankrupt.

I filled out the advice form with stepchange and the first option given was bankruptcy and the second a DMP which would last a long time (over 10 years)

I've been separated since around this time last year and live solely on benefits. If I were to do this long DMP it would mean using my disability benefit which I'm not really sure I can totally do without.

I seem to spend my days reading this forum and going back and for every day changing my mind on what I should do. Any advice would be welcome.

National_Debtline

Hi Daisy

As long as there will not be any serious implications to your life such as affecting a tenancy agreement, assets or possibly career prospects it sounds like bankruptcy is more viable. If the DMP would involve using your essential disability benefits for over 10 years it sounds like you might be stretched too far for it to be sustainable for that amount of time.

If you owe under £20,000 a debt relief order might be a possibility instead of bankruptcy and it only costs £90 to apply for.

If you’ve only completed an online debt tool so far I think you should speak to an adviser with a free debt advice charity to make sure you get full advice on your specific situation.

James
@natdebtline

Daisy2015

Thanks for the reply. I owe over £20,000 so cannot do a DRO.
I made £1 token payments to my creditors this month... First time I have not paid the minimums and keep feeling quite sick about it. I've had a couple of letters arrive saying my payments are late even though I have advised I have been in touch with stepchange.
Do I still keep making these token payments if I decide on bankruptcy? It will take me probably untill beginning of February to save up the fee.

National_Debtline

The letters you’ve received are pretty much standard practice so don’t worry. I know it’s a big step and a stressful time I’m sure, but there are plenty of people on here who have been through the same thing and can offer support.

In terms of whether to make the £1 payments until February you don’t really need to as you’re paying towards a debt which will be written off, but on the other hand you might find it keeps your creditors at bay if you’re at least showing good will. It’s up to you but it might make your life easier to keep the payments going if you can afford them.

You can check whether you can get help with the fee from a charity trust fund or grant by searching on the Turn2us website:

www.turn2us.org.uk/Find-Benefits-Grants

James
@natdebtline

fatbelly

Bankruptcy may well be the way forward but you should still run your situation past a specialist debt adviser to make sure it fits your specific situation.

Daisy2015

fatbelly wrote: »

Bankruptcy may well be the way forward but you should still run your situation past a specialist debt adviser to make sure it fits your specific situation.

Would that mean just calling stepchange and speaking to them for example? Rather than just having filled out all the online stuff and being told bankruptcy was the main option?

National_Debtline

Yes, call Stepchange, National Debtline or Citizen’s Advice Bureau.

James
@natdebtline

Daisy2015

Thank you... I will get up the nerve to do so