DMP vs Bankruptcy

Cornflakes111

Hi,

I am just looking for some last minute advice.

I have the money to pay for my bankruptcy but before I do, I want to ask for some advice on whether I should bite the bullet or try and work out a DMP.

I know that with bankruptcy it'll be done in 6 years on the credit record but if I go with a DMP and make the payments I can it could take up to 10+ years and my credit rating would be trashed anyway.

I don't own any assets it's just the stigma that comes with bankruptcy that has me worried.

fatbelly

If a dmp works correctly it shouldn't affect your credit file worse than bankruptcy so don't use that as a way of differentiating between the two strategies. But 10+ years is a long time for a dmp if you have an insolvency option open to you.

As for the stigma of bankruptcy it's not what it was. You do appear on a public register but if you're not a celebrity it's unlikely anyone will pick up on it. There is a thread on famous bankrupts if you want to see some of the celebs that have gone down that route.

Without more detail it's hard to give further comment. Feel free to ask further questions.

Cornflakes111

Yeah, the DMP would be on minimal payments too so it would arguably take even longer.

Is it possible to have your name removed from the public register if you work in an industry where you are public facing?

Here is my SOA:

Household Information
Number of adults in household........... 1
Number of children in household......... 1
Number of cars owned....................

Monthly Income Details
Monthly income after tax................ 1698
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1698

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 620
Management charge (leasehold property).. 0
Council tax............................. 137
Electricity............................. 30
Gas..................................... 30
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 0
Mobile phone............................ 20
TV Licence.............................. 13
Satellite/Cable TV...................... 0
Internet Services....................... 22.5
Groceries etc. ......................... 220
Clothing................................ 30
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 160
Childcare/nursery....................... 300
Other child related expenses............ 40
Medical (prescriptions, dentist etc).... 30
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 15
Entertainment........................... 30
Holiday................................. 0
Emergency fund.......................... 20
Total monthly expenses.................. 1757.5


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly.. .APR
Sains..........................6000......150...... .0
Sains..........................9000......242...... .0
TSB............................2500......50....... .0
Creation.......................250.......25....... .0
Monzo..........................500.......15....... .0
Barclay........................8200......180...... .0
TSB............................2500......50....... .0
Total unsecured debts..........28950.....712.......-


Monthly Budget Summary
Total monthly income.................... 1,698
Expenses (including HP & secured debts). 1,757.5
Available for debt repayments........... -59.5
Monthly UNsecured debt repayments....... 712
Amount short for making debt repayments. -771.5

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -28,950
Net Assets.............................. -28,950

People have said that based on that I won't need to pay an IPA.

Minkym00

The only way you can prevent your name appearing on the Insolvency register is to apply for a PARV (person at risk of violence) order. This is a court order, so you would need to apply to the court for a judge to grant it. It wouldn’t be granted for the reason you have proposed I’m afraid.

mwarby

Based on above I don't see how you could make meaningful DMP payments. By my reckoning if you could find 100 a month (so 150 on current budget as your 50 a month short), you'd be looking at 24 years

Cornflakes111

Yeah, I'd basically need to reduce my food/general housing items spending considerably to be able to do it.

Does anyone see anything excessive on my SOA that could be questioned by OR?

MovingForwards

The child related items eg nursery and other.

It was asked in your other thread about whether the child lives with you 50% of the time.

I'm guessing there is an informal agreement between yourself and the mother (?) about what you will pay, from reading other threads about bankruptcy informal agreements don't get followed by ORs, only court ordered ones. May be best to prepare yourself for that.

Minkym00

Plenty of people don’t have a child maintenance agreement via court order. The OR won’t challenge these payments as long as they’re not excessive.