who to go with, stepchange, payplan or citizens advice?

candycream35

Hi all, me and my partner sought advice last September about how to get rid of our debts with stepchange. They suggested am IVA, but we do not have any money as it is so we were more for bankruptcy, they agreed with this and sent the various forms needed and all we had to do was save. Unfortunately my partners hours were cut and we ended up being in more debt as he took out some payday loans which we definitely cannot to repay (total this month is £350 out of a £1100 wage with £750 on normal bills)
We have decided to go bankrupt once and for all as we cannot live this way anymore, who would we best seeking advice from? we are planning on splitting the spare money left over each month to pay for this as the government finally do installments. which I worked out should be paid for in 5 months times if all goes to plan.
I am currently paying off my CCJ at £20 a month (total debt was £420, now stands at £230) and a previous council tax bill at £20 a month which ends June 2017. Do I continue to pay the debts I agreed to or just stop paying anything non-priority and put all spare monies into going bankrupt? If we stopped all this we could go bankrupt within 3 months instead,

sorry for all the questions, I am currently sorting all paperwork out and awaiting our credit reports so we can find out once and for all who to go with about our debts.

Concerned75

Citizens Advice is probably first stop. Get an overview of whats best for you in the long run, because whatever you choose, you'll be locked into it for 6+ years. So my advice is choose wisely and carefully.
Best of luck.��

tigerfeet2006

My advice is National Debtline and then Stepchange. Get two opinions, see who you gel with and let them assist you through it with back up from here.

The advantages are you have someone at the end of a phone for 12 hours a day and if you have a query they will be there to answer it. If they are not and/or you want some advice from people who have been there,done that then you have us and all you need to do is post. There are people here who can talk to you about SoAs, IPAs, BRUs or whatever.

Stop paying your debts and only pay priority and get that money together.

TheGardener

I concur with tigerfeet - although CAB are amazing - my experience of their debt management stuff was not great. It depends entirely on the experience/qualifications of the local volunteers as to whether there are any debt experts in your local CAB. (My local CAB are amazing with housing related stuff though)

If you have made the decision to do BR - pay only your essential overheads (rent?) In theory you could stop paying everything else as any arrears would be included in your BR.
Have you tried applying to the utility companies - some have funds to pay BR fees for customers who are struggling.

Gingerprincess

I went with CAB who were helpful with firms etc but I did feel pushed into BR and other avenues weren't looked into.

debt_doctor

Well...........
Knowing all those organisations and seeing the varied level of the standard of advice in them - and having to put right the mistakes of all of them.....
I would get advice from Citizens Advice AND National Debtline.


My honest opinion of if I had to choose just one for consistency in advice it would be National Debtline.
However, if you need things actually doing on your behalf - someone ringing the council, your creditors, the court etc then I think the CAB offer far more of a service in that area.
Any organisations I've not named wouldn't be on my list.
DD

candycream35

Many Thanks for all your replies. We have decided to do a sit down with the CAB first, then see how it goes from there. last time i spoke to the CAB they only had a walk in clinic on a Friday for debts, so as soon as i have all our paperwork together we will be off to see them.

I'm finding this all so confusing, when putting down outgoings it shows we have £200 left a month, but how will they take it into account when we are both going to be bankrupt as we are on a low income as it is and worried they are going to try and take £200 off each of us for the IPA, we mainly rely on benefits to get us through the month. But as my partner works we are automatically expected to pay towards our debts, so part of me wonders if we should first see what an Iva would expect us to pay.

Sorry if that sounds selfish and naive, we have had circumstances which have made our debts spiral. we would pay them back if we could, but unless we win the lottery (which we dont even play) chances of that are slim.
We also have 4 children (16, 11, 10 and 3) who are quickly growing up and needing more and more so would like to be able to give them a fiver when they ask instead of saying i am broke! its breaking my heart that they dont get to do anything unless its free due to our problems we made.

debt_doctor

Why don't you pop up your income and expenses on here for us to look at? You will be better armed and informed for your CAB appointment if you do.
DD

debt_doctor

Even if you do have spare income (remains to be seen) - you are far better paying that spare income to a bankruptcy IPA for 3 years rather than an IVA for 5/6 years.
DD

fatbelly

candycream35 wrote: »

Many Thanks for all your replies. We have decided to do a sit down with the CAB first, then see how it goes from there. last time i spoke to the CAB they only had a walk in clinic on a Friday for debts, so as soon as i have all our paperwork together we will be off to see them.

The fact that they have a dedicated debt drop-in probably means they have a specialist in the building that day. Fingers crossed.

Did you use the drop-in yesterday?