I've failed - DMP

jimmy*c

To cut a long story short, I'm jobless now, I have around £15k of debt to various creditors and no way of servicing it effectively. I'm going to enter a DMP through stepchange on monday, and I really don't know what to expect. Sorry if this has been posted before but Im at a loss.

HappyMJ

If you're not earning any money a DMP is pointless.

If you don't have savings to make minimum payments you should just be making token payments until you get a job again. That's not a DMP.

crazy_cat_lady

Most of us have been there - and Stepchange certainly helped me out of a horrible situation a few years ago. Speak to them on Monday and see what they recommend for you.
Good luck.

jimmy*c

Again to cut the story short, I've made arrangements with others to at least service a DMP payment until I get another job. I don't know how long that will be. I never thought this would happen.

I tried their Debt Remedy tool, but it seems to be for home owners - there are no options for "living with parents" etc. I will speak monday and see what happens.

sourcrates

jimmy*c wrote: »

Again to cut the story short, I've made arrangements with others to at least service a DMP payment until I get another job. I don't know how long that will be. I never thought this would happen.

I tried their Debt Remedy tool, but it seems to be for home owners - there are no options for "living with parents" etc. I will speak monday and see what happens.

Yes there are options for you.

If you don't own a home, have no assets, and less than £50 a month left after all bills paid,

ENQUIRE ABOUT A DEBT RELIEF ORDER !! (DRO)

The limit of debt is 20k, there are other criteria, you make no payments for a year, after which, if your situation has not improved, the debts are written off, see here :

http://www.stepchange.org/Howwecanhelpyou/DRODebtrelieforder.aspx?WT.srch=1&WT.mc_id=200109&WT.seg_1=dro&gclid=CLjY8dL9rsoCFRW3GwodbzIK0g

jimmy*c

I'm not sure DRO would be the best way - I had more than £50 left over, as much as I satisfy all the other requirements to apply for DRO. DMP looks to be the way it's going and I don't know what to expect.

sourcrates

jimmy*c wrote: »

I'm not sure DRO would be the best way - I had more than £50 left over, as much as I satisfy all the other requirements to apply for DRO. DMP looks to be the way it's going and I don't know what to expect.

Have you budgeted correctly ? Many do not.

Simply adjust your budget to suit !!!!

You can't pay into a DMP when you are unemployed, surely if your on JSA you can't have a Hugh income ?

HappyMJ

jimmy*c wrote: »

I'm not sure DRO would be the best way - I had more than £50 left over, as much as I satisfy all the other requirements to apply for DRO. DMP looks to be the way it's going and I don't know what to expect.

But you don't earn any money so how can you have anything left over at all? You can use higher figures for most categories than what you actually spend.

jimmy*c

I don't earn at the moment - I will be getting my final pay + time to date soon and that'll have to see me for a bit. I said above there are arrangements to sustain a DMP for me until I get a new job, but I don't want to rely on that - It's a big ask for others.

Down the DRO route - Can't be chased for 12 months, after which the debt is written off... How does this compare to DMP? Don't get me wrong, I want to pay the money back - I borrowed willingly afterall - But if DRO is best for me I can look into that.

sourcrates

jimmy*c wrote: »

I don't earn at the moment - I will be getting my final pay + time to date soon and that'll have to see me for a bit. I said above there are arrangements to sustain a DMP for me until I get a new job, but I don't want to rely on that - It's a big ask for others.

Down the DRO route - Can't be chased for 12 months, after which the debt is written off... How does this compare to DMP? Don't get me wrong, I want to pay the money back - I borrowed willingly afterall - But if DRO is best for me I can look into that.

Defenatly look at a DRO, if you have no income, you cannot do a DMP.

With DRO you make no payments, ideal for your situation, you need to pay a £90 fee to the insolvency service.

Get in touch with stepchange, they will go through it with you and make the application, it can be done in a matter of days/weeks and will give you piece of mind you will not be chased.

jimmy*c

Thanks sourcrates - i'll make sure this is discussed on the phone tomorrow.