Self Employed and thinking of going bankrupt but not 100% sure

sourcrates

happy2017 said:

RAS said:

Absolutely needs to get proper advice from a debt charity, not paid for advice. Bankruptcy is hard and costly to reverse. 

She might want to consider a DMP?

What's the difference between the cost of the school fees and Child Support?

She is considering a Self Managed DMP.  
Is this just a case of completing an income and expenditure form and sending these off to all her creditors?

No, not really, its just a case of setting up payments with whoever writes to her saying we now hold your debt.

happy2017

sourcrates said:

happy2017 said:

RAS said:

Absolutely needs to get proper advice from a debt charity, not paid for advice. Bankruptcy is hard and costly to reverse. 

She might want to consider a DMP?

What's the difference between the cost of the school fees and Child Support?

She is considering a Self Managed DMP.  
Is this just a case of completing an income and expenditure form and sending these off to all her creditors?

No, not really, it’s just a case of setting up payments with whoever writes to her saying we now hold your debt.

But she needs to let them default yes? Which can take up to six months so she will not pay them until then is that correct? Thanks

RAS

It can take anything from 3-18 months for debt to default. Meantime save up an emergency fund.

sourcrates

happy2017 said:

But she needs to let them default yes? Which can take up to six months so she will not pay them until then is that correct? Thanks

That is what we recommend, yes, some companies default quickly, some don`t, as RAS says, an emergency fund is essential, as there will be no access to credit.