Debt Free Options

markoid

Thanks fatbelly. After a few phone calls the 2017 CCJ is indeed from one of the organisations (PRA) on my DMP.

sammyjammy

It seems like a no brainer to stop paying towards the DMP and save up the money for bankruptcy fees.

Could it be that your employment makes it tricky for bankruptcy to be an option? Do you work in the financial sector?

D_M_E

Given the new information you provided after my post, I would now say ignore what I wrote previously and stop paying into your DMP and save the payments to pay the bankruptcy fee and go down that route.

However, as you are now in a relationship, make sure that and property, if owned, is in the sole name of your partner so that it cannot be taken into account as part of BR - if you are renting then this is not a problem.

sammyjammy mentions the Financial Services industry - is your current occupation here?

I have a friend who went bankrupt 5 years ago - 2 years ago he applied for, and got, employment with a major bank and declared all his troubles at interview, the bank went through his circumstances bit by bit, so he tells me, he had 3 interviews, was totally honest in everything and was eventually given the job, shows there is still possibilities.

EDIT - If you are worried about your employment, discuss with your employer before making your decision and be totally honest with the reasons why you are in so much debt and why you feel bankruptcy is now your only option.

Also, do you have a company pension - I am not sure if this will be taken as part of bankruptcy to put towards your debts, someone else may be able to comment on this.

Just_Di

markoid wrote: »

the 2017 CCJ is indeed from one of the organisations (PRA) on my DMP.

Why did PRA issue a claim while you were on a DMP - albeit a DMP is voluntary? Were PayPlan paying the correct business the amount agreed?

That's not exactly Treating Customers Fairly.

Did you never receive the claim form nor the subsequent CCJ (Order) last year? Have you moved house since last year?

Di

markoid

In rented accommodation and nothing owned in joint names. My occupation is not on the list of those I’d be barred from working with or where I’d need to declare my situation.

It’s sobering coming onto this site and proactively dealing with something that’s actually had a massive impact on my life. It’s also good to see so many people helping others with advice and information. Thanks all.

markoid

Hi Di, I’ve never seen anything in relation to a CCJ from PRA. I did wonder why they called me when I’m a day late with my DMP. I did tell them to only communicate with me by email, which they now do. It does seem a bit odd as I’ve been paying for 6 years...

Gg83_2

Hi you need to get some advice before jumping in to bankruptcy. Bankruptcy is a serious consideration, so speak with step plan, but also look at what bankruptcy might mean for you. Eg if you work in financial services or other areas, going bankrupt might put your job at risk, so you can’t look at this as a option purely in relation to how much debt you’ve got. Am IVA may be a better option. I expect pay plan have you on nominal payments in line with your affordability, but do think long and hard before simply going bankrupt. Everyone’s circumstances are unique, and you might be able to change your circumstances and get out of debt in other ways eg, securing extra work, selling off a load of stuff, etc so that you can chuck extra money at this debt to bring it down sooner. Also check that interest is frozen (I expect it is). Also think if you have ccjs about paying them first before any enforcement action happens. In short, you need to seek advice and I’d go to debt plan, or somewhere like citizens advice bureau. Take advice on an Internet forum with a pinch of salt, as people will not know the ins and outs of your circumstances.

Gg83_2

Sorry I made reference to step plan and debt plan... I meant pay plan. Pay plan are a reputable organisation. So you’re started in the right place. Good luck.

fatbelly

Gg83 wrote: »

Hi you need to get some advice before jumping in to bankruptcy. Bankruptcy is a serious consideration, so speak with step plan, but also look at what bankruptcy might mean for you. Eg if you work in financial services or other areas, going bankrupt might put your job at risk, so you can’t look at this as a option purely in relation to how much debt you’ve got. Am IVA may be a better option. I expect pay plan have you on nominal payments in line with your affordability, but do think long and hard before simply going bankrupt. Everyone’s circumstances are unique, and you might be able to change your circumstances and get out of debt in other ways eg, securing extra work, selling off a load of stuff, etc so that you can chuck extra money at this debt to bring it down sooner. Also check that interest is frozen (I expect it is). Also think if you have ccjs about paying them first before any enforcement action happens. In short, you need to seek advice and I’d go to debt plan, or somewhere like citizens advice bureau. Take advice on an Internet forum with a pinch of salt, as people will not know the ins and outs of your circumstances.

You mean stepchange, payplan and Citizens Advice.

All 3 are sources of free advice, though the first two do have products to sell. The other source of free advice is (and they have no product to sell) National Debtline.

Advice to treat creditors preferentially is questionable if the OP is going for bankruptcy. Better to concentrate on getting the £680 fees.

You mention the OP's 'nominal payments' and then say an IVA may be better. How is the OP going to fund that and what asset is he protecting? An IVA is insolvency as much as bankruptcy but he does not appear to have enough surplus income (or reason) for one.

Suseka97

Gg83 wrote: »

Take advice on an Internet forum with a pinch of salt, as people will not know the ins and outs of your circumstances.

Sorry, but you're wrong here. There are many, many people on this forum who have first hand experience of these matters and who are industry experts. This forum serves to help people in these situations and it does a damn fine job - otherwise it wouldn't have the endorsement of Martin Lewis and his associates.

OP - listen to the advice from Sourcrates, Fatbelly and Just Di- all very experienced and specialists in this field of knowledge. I cannot understand why PP would suggest a DMP for such an extended period of time. I've heard from many people that if their situation would mean a DMP would run for more than around 5-years, the debt charities tend to push you down the Bankruptcy or IVA route.

This is definitely the route for you - from what you've said about your personal circumstances, you have no joint association with your partner, no assets to speak of and it won't affect your employment. So in short, you really have nothing to lose and much to gain.