My first post and I've been so stupid on DMP.

boofinkle

Hi folks, I have been 'lurking' for awhile on here but it's my first time posting.

Just wanted some advice and to confess that I have been daft on my DMP.

Myself and hubby have had a DMP running for awhile. Things ran smoothly at first but then we were stupid. Aside from the debts managed in our DMP we have 'run up' two more debts alongside this. I know this against the rules, so to speak and I don't know how we are going to sort it out apart from possibly going bankrupt.

From what I can gather from other info on the site it seems that if your surplus expenditure runs under or around the £100 pound mark then you are better off going bankrupt. Is this the case? I know we have to inform the people that run our DMP and this will lead to them not being able to help us anymore. I really don't know what to do next, I can't believe I have been so stupid.

Also(sorry nearly forgot). If it came to bankruptcy, would the OR look unfavourably at us because we have run up further debt?

Appreciate any advice, just feel like **** at the mo.

Thanks.

madoldbat

Hi boofinkle,welcome to the site,you will find a lot of people who will help you with support and advice sure they will pop in later.
For now regret I know nothing about DMP as never had one .But if you are thinking about going bankrupt you MUST get advice.
CAB helped us.They will be able to help you and possibly nigotiate on your behalf.Debt Doctor posts on here and works for CAB so will confirm/deny last bit.
Well done on taking a first step to regaining controle of your life admitting and dealing with the problem is a big leap forward.

debt_doctor

Hi boofinkle, bankruptcy is a big step and has pro's and con's that vary widely from person to person. It is also a 'god send' to some people, and free's them from overwhelming debt and stress.

The fact that you have run up another couple of debts, is unlikely to affect your BR that much, possible restriction order but doubtfull unless they are large debts.

Chuck a few questions in and we ll see what we can do

Best wishes.

wherediditallgo

As well as the CAB, you can also contact any of the following organisations for help -

National Debtline
Consumer Credit Counselling Service . Two of the CCCS staff come on this board.

When you go to court, you'll be asked if you've taken professional advice & if you haven't, that's one of the few reasons that can be given for not allowing your bankruptcy to go ahead on that day. It's vital to get proper advice - going BR has good & bad effects on your life, so make sure you ask them any questions you have no matter how stupid the questions may seem to you.

boofinkle

Thank you for your advice.

I guess I feel stuck between a rock and a hard place at the moment.

Debt Doctor mentioned a restriction order, what exactly is that? Our debt is around the 25k mark and the two additional debts are £1200. Will this make a difference?

Sorry if they seem like daft questions!

fermi

debt doctor is referring to a Bankruptcy Restriction Undertaking/Order (BRU or BRO).

While you would still be legally discharged from bankruptcy after 12 months, a BRU/O extends the legal restrictions that apply to you in bankruptcy beyond this.

For most people you shouldn't worry too much about getting one since they are normally reserved for those who have been wilfully reckless, rather than most of us who have made some bad decisions in good faith.

For taking out an additional £1200 I don't think a BRU would even cross the OR's mind.

If you want to read about them there is a factsheet here:

http://www.insolvency.gov.uk/guidanceleaflets/bro/bro.htm

Lots of the guides here are also worth reading:

http://www.insolvency.gov.uk/guidanceleaflets/Guides.htm

wherediditallgo

You can find out about BROs here . All BRs are subject to certain restrictions, & BROs extend those by anything from 2-15 years. They are very rarely imposed, but they can be so they're not something to take lightly. The OR won't be amused by you taking on extra debt when you already had a significant amount, but I very much doubt that it will be enough to give you a BRO since the later amount is much smaller by comparison. The amounts involved that I've seen BROs given for have been much higher than that.

Also, don't worry about asking daft questions - in my book, there's no such thing. I'd go so far as to say that it's not asking questions for fear of being thought of as daft that has got some people in trouble further down the line - it's much better to ask for an answer than assume one, so just keep asking.

EDIT: fermi beat me to it (not for the first time either )

Broken_hearted

You are not alone in running up debt while on a DMP. I keep shutting accounts down only to open them up and spend again. Running a DMP gets you down sometimes and when you're down you spend (well I do). I don't think your stupid just going through the motions of the debt roller coaster.

debt_doctor

Yeah, the guys above are right ( as usual ! ) You wont get a BRO for that !

Bankruptcy might be good for you but we need far more info like income, outgoings, home owner ? joint / sole, equity or not ?, what job ( s) you do ? and what you want to do in the next 6 years.

Then we can advise you

Best wishes

boofinkle

Here is a brief rundown of things:

Our total income is £1700 per month. After the usual expenses have been paid we have a surplus of £250. This £250 is what we pay on our DMP. The other additional two debts work out to around £100 per month which stupidly we have been paying off with some of the housekeeping money. Now it's coming to the point where we are can't afford the two extra debts(surprisingly enough).

The problem is, is that we will have to inform the DMP people and ofcourse we have broken our agreement and they can't help us anymore(I assume). So that leaves us with having to negotiate somehow with all the people we owe money to and I'm not really sure if I can start all over again. We know we cocked it up big time but we're not sure what to do for the best.

There is myself, my hubby and one child. We don't own any property or a car or have any savings stashed away.

Any advice greatly appreciated.
Thanks.

oh by the way(sorry). Debt Doctor, you mentioned plans for the next six years. Well, we are aware that our credit rating is shot to bits because of the DMP and we have no plans to purchase a house(property prices are far above anything we could imagine to afford).
Oh and also jobwise:my hubby works full time for a private healthcare service and I work part time for the local council.
Thanks again.

debt_doctor

Ive assumed your rent at £ 400 pm, and feel that your 'IPA expenditure' could be £ 1400. This would result in you having to pay the receiver about £ 150 per month for 3 years.

I assume you have not put child ben or child tax credit in to your income as they dont count for income in an IPA.

How long does your DMP run for ?