DMP - possible BR

kezza90

Hi, I'm not sure if this is the correct thread so please just bear with me. My partner has a DMP and has been paying £50 per month for the last 18 months into this through PayPlan, spurred on by me he rang for an update to see how much he owes, it is as follows: 657.98 (paying £1.13 per month), £10k (paying £18 per month), £4k (paying £7.14 per month) and £14k (paying 24.17 per month). He wont be debt free until approximately 2064! I am astounded that a DMP exists to repay £1.13 per month to one of the creditors, is this normal? He actually thought he had an IVA but in fact has a DMP. He is wondering about going bankrupt instead as he doesn't want to be paying this off for the next 48 years (he also has 2 children to support). Would he be better off going bankrupt? I ask as I went bankrupt in 2008 and it helped me not only financially but also mentally/emotionally (which is another story). Any advice would be appreciated. Thanks

Karonher

Would he be able to increase the amount he pays? If he could cut back on expenses or take on a bit of extra work it would be a big help.

sourcrates

If your debt situation is going to take any more than 5 years to repay, he should be looking at another solution.

No amount of fettling with the budget is going to make much difference here.

It worries me slightly that he mistook a DMP for an IVA, there two very different things, obviously he dosent have much money to put towards these debts, so that rules out an IVA, his debt is to large for a DRO, so the choice is between carrying on as you are, or go bankrupt.

No point umming and areing about it, I think you know the answer to this, since you went bankrupt, the system has changed, there is no longer a requirement to appear in court, you pay the fee, the OR will say yea or nay, and that's it.

If it dosent affect him jobwise, then I can see no reason to pay a DMP for 40 plus years, that's just ridiculous.

fatbelly

657.98 (paying £1.13 per month)
£10k (paying £18 per month)
£4k (paying £7.14 per month)
£14k (paying 24.17 per month).

total debt 28658

payments 50.44

time to clear if interest frozen = 47 years 5 months

What were Payplan thinking? That's a genuine question, as the FCA no longer approves of companies setting up plans like that. Is this a holding plan while he saves for bankruptcy?

Sazzie23

Surprised as Stepchange minimum is £5 per month per creditor, although my DMP is more recent (2013) so perhaps the rules changed.

Well done for looking at this, seems DH not quite as informed about his options as yourself.

Financially I'd say he'd be better off going BK, but make sure it doesn't affect job, I am a healthcare professional, and even the DMP has some effect on what I can and can't do, if I went BK I'd have to declare it to my registration authority.

If there's no chance of upping the payments significantly, BK would seem to be the way to go. Make sure you have checked his debts for ppi, cca and any interest he's been charged whilst in DMP.

Saz

kezza90

Hi all,


Thank you for all your responses. I rang the National Debt Helpline over the weekend, the discussion with them and advice from you has just cemented the fact that I think the best course of action is for him to go bankrupt. He works for the local authority so I don't think it will affect his job.


Fatbelly - I agree with your comments, I'm astounded that an organisation would allow for such a small amount to be paid each month and that an organisation would suggest this in the first place. His experience of PayPlan has not been too good, they say they will send information through then don't, then it turns out the person is off sick and no one has picked it up. It all doesn't fill you with confidence.


thank you for all your advice.