best course of action

moto007

Hi,
Currently I am living off of government benefit because of my disability to work due to my medical condition. Currently I am recovering, and benefits is helping me to meet my day to day need.
Before my surgery I had some loan (under 20,000) and based on bank suggestion I got enrolled in to token plan with step change. Now I got letter from step change saying they cannot support the token plan as it’s more than 2 years, so now either I have to declare bankruptcy or debt management plan. Based on step change calculation (confusing) my surplus is more than 49 pound, so step change ask me to enroll in to debt management plan. How can I go paying off the debt with bare minimum money that I get from benefit? What would be the right move in this case? Any suggestion is appreciated.

National_Debtline

Hi moto007,


Bankruptcy can be hard to assess without knowing all of a persons details (particularly whether or not you have any assets), however, if you have a limited means to repay the debt, and that is unlikely to change then an insolvency option may be suitable.

It sounds as though Step Change may have looked into a Debt Relief Order for you, instead of the bankruptcy. A DRO can help people get their debts written off but one of the criteria is that you need to have less than £50 per month available for debts. If you have more surplus than this then this could explain why this option seems unsuitable. It may be worth posting a SOA to discuss this further.


Laura
@natdebtline