Is Bankruptcy as Daunting and Scary as it seem

Mart7379

@fatbelly could you take a look?

Billy_B_North

Minkym00 said:

Billy_B_North said:

Bankruptcy is a very major, life-changing event, so is not to be entered into lightly. I don’t agree with how minor some posters make it out to be.
On the other hand, it can absolutely be the right choice for some people. The important points are that you have to make sure that it’s right for you, and that you go into it fully aware of what you are doing.
You will be shutting off access to many financial services for several years, and from some careers for a lifetime.
Do you have any equity in your home?

Bankruptcy “can be” a life-changing event, not “is”. EVERYONE’S circumstances are different and sweeping statements such as this are not helpful. There is also a vast difference between voluntary and compulsory bankruptcy. The vast majority of people that have gone through it voluntarily will say it was a positive experience. 

If it’s not going to be life-changing, then why would someone do it?

sourcrates

Mart7379 said:

@fatbelly could you take a look?

You have to remember the stepchange debt remedy tool is a bit of a blunt instrument, it will cover the various options available, using only the most basic of information.

When you put your case in detail to an actual advisor, and not a computer, the result may be very different.

Mart7379

thanks, I am going to give them a ring shortly. And get some advice. My mind is still set on bankruptcy but after you guys suggesting the DRO I want to look at it as the better option. 

Mart7379

If @fatbelly could take a look at the SoA above I would appreciate it, or anyone else that is clued up on the DRO option

sourcrates

DRO criteria is as follows -

Debt of no more than 20k (currently)
Disposable income of £50 or less (currently)
No assets worth over £1000    
You can have a car valued at up to £1000
You cannot be a homeowner
You must have lived in or run a business in England, Wales or Northern Ireland for the last three years.
There is a £90 fee.

Usually if you can meet all of the above, you will be accepted for a DRO, despite stepchange computer saying no.

Mart7379

👍👍 and my creditors have to abide by the ruling of a DRO, and can not apply to a court to be allowed to continue chasing the debt I owe. 

sourcrates

Mart7379 said:

👍👍 and my creditors have to abide by the ruling of a DRO, and can not apply to a court to be allowed to continue chasing the debt I owe. 

Yes its a legally binding agreement, you make no payments at all during the 12 month moratorium period, then after the 12 months are up, as long as you have reported no changes in circumstance, all your debts are written off.

Mart7379

Ok I think after taking all of your advice I will be abandoning the application for Bankruptcy. And going towards the DRO, and setting the ball rolling. 

Mart7379

1 issue I have however, and some of you may already know from a previous thread I started. The car I drive and pay running costs towards I also pay the finance, on behalf of the car actual owner. I know the OR will see the payment as none essential expenditure and did disguise this payment in my groceries spend. However there is evidence of the payments on my bank account of the weekly payment to the car owner. Should I therefore Deduct this payment from my grocery spend and show it as a loan from a family member. On the basis an OR or someone doing my DRO will see this and question the payments?