DMP - DPP - TRUST DEED or SEQUESTRATION - Options ?????

vandanfc

Hi all

I posted this on the BR board at lunchtime, but have had no response so far, so thought I would try the DFW for advice, as some of you have been there done that or got close and chosen another. I got on board with these friends 18 months ago. When I had sussed out the situation, I realised it was too big for me to handle alone, so got them onto the local Council's free advice service. Since then things have got no better and some really bad decisions have been made. I am not entirely sure whether these decisions have been taken without the debt councillor's knowledge ot they have simply ignored the advice they have been given. They have definitely ignored my advice when remortgaging and converted non secured debt into secured on their mortgage.


Please can i ask for some pointers for some friends who have got themselves in a pickle.

Current situation is:

Couple in their 40's with 2 primary school age children. Unsecured debt of approx. £100,000. It looks like it will take about 12/13 years to pay this back via a DMP assuming everyone freezes interest/no extra charges are added.

Up until 6 weeks or so they owned a house, but sold to try and help their situation. Unfortunately selling the house has actually not improved things at all. They are now in rented accom. for the foreseeable future.

A trust deed was suggested, but the husband would not consider it. Now finally though he has agreed to go with a trust deed.

My opinion is that there is no point in doing this now, and that in reality they should either stick with a DMP or a DPP as has now been suggested or go down the bankruptcy/sequestration route.

Any thoughts/advice on this matter would be welcome.

CLAPTON

Your friends need to take control / responsibility for their situation and come on here and post a full SOA.
Nobody can reasonably give good quality advice with the information you have posted I'm afraid.

vandanfc

Their current soa has been produced by their debt adviser in line with govt. guidelines. They can just about manage to stick with it. Neither are very disciplined which is what has got them into this mess. They are currently on a dmp set up by the council money adviser, but they have been advised to look at the new (?) gov't initiative of a DPP. But hubby has now said he will consider trust deed, but now that they haven't got their house it seems to late to bother with this as a course of action. I just don't see any point in going down the trust deed (IVA) road now.