Bankruptcy or DMP ?

BigMac68

I realised I was in over my head this time last year and had been struggling with a lot of debt that was just never going down due to minimum payments and interest etc - meeting all the payments but then using credit to live on - I am sure you know where I am coming from.  Had a breakdown last Feb - and then we moved into the hell of 2020 - I was off work a couple of months initially due to mental health issues then back working at home all through lockdown. During that time I contacted Stepchange and my creditors to say I was having difficulties paying and stopped paying them all. I haven't made any payments since - my marriage suffered through all of this and we parted through the summer - my job was made redundant and I had to apply for a new role - which I got and is ironically more money. My question now is initially i was looking to go bankrupt and have completed the online form and nearly paid all the fee - but now my husband and I are trying again (although he also has debt problems) and Stepchange are now suggesting a DMP as an option. My income is quite high - new salary and car allowance - plus he gives me board money each month - so my excess income is over £1000 a month (that would not be enough though to furnish my original debts).  Do I take the plunge and go Bankrupt and pay the IPA for 3 years (my only asset is my car worth about £1800) and we have a housing association house - or attempt the DMP for 4 and a half years and hope that they all accept it and freeze interest and chasing for payments. My mental health says go with the bankruptcy and get it over with but from a moral point of view I am struggling ... any advise appreciated

JCS1

How old are your debts?  Have you done requests on them all to see if the paperwork is valid?
Also, your car might be an issue - the general guideline is a car up to the value of £1k

BigMac68

Thanks - debts are all current and I was paying all in full until end Feb2020 - yes thought that about my car - my sister did wonder if she would be able to maybe buy it from the receiver as I need a car for work and living in a village 

JCS1

Have you done CCA requests on your debts?  Just wondering if any are unenforceable and therefore you may be able to negotiate lower settlement figures.
Just wondering if that would mean you paid back less than via an IPA?

fatbelly

I think you need a good reason not to go bankrupt and a £1800 car is probably not a good reason.

Have you got that value from Parkers Guide? What is the lowest figure that website gives? It's a free valuation.

BigMac68

Hi - the value actually came from We Buy Any Car - where I put in the condition of the car - there is some superficial damage inside and out