Debt advice needed

sourcrates

fatbelly said:

In the lead-up to bankruptcy, the best policy is to pay all creditors nothing. Just concentrate on getting the £680 fee together

OP said in January

My overall debt is £32k. I’ve spoken to step change and they advised I would be best to enter into a DMP and have worked out I can afford £330 per month which would take me approx 8 and several months to complete.

I just want to rebuild my financial life and be able to have savings, buy a property and start a family but this is holding me back. I’m constantly worried and don’t know what to do. When I move forward with things such as starting a new job the debt is always hanging over me.

I have no assets (my most expensive item is my Apple Watch) and I have no savings so I’m genuinely wondering if going down the route of bankruptcy and starting afresh would be my best option.

Indecision can be a real burden, you have no assets and no savings, and it’s becoming quite obvious you don’t have £330 burning a hole in your pocket every month with which to pay a (very long running) DMP, your debt is too high for a DRO, and an IVA is out of the question as well.

Only one option left, and that’s the B word, you have already said a debt management plan will take too long, I recon your budget can be tweaked in a few areas, so the chances of an IPA are reduced, get saving the £680 and it’ll likely be the best move you have ever made.

kevker23

Having just gone bankrupt, I can tell you it's not as scary as you think. Like everyone else says, get advice before doing anything, and explore all options.

As for your question of saving £20 a month for emergencies, I have just gone through my IPA interview. I put the same, 20 for an emergency fund. Was not questioned. I put 50 for a holiday fund, was questioned, but approved (possibly as part of my recovering from depression, my GP advised to take several breaks a year, not an overseas break, but days out etc, and the PIA interviewer said that was fine).

cymruchris

sourcrates said:

fatbelly said:

In the lead-up to bankruptcy, the best policy is to pay all creditors nothing. Just concentrate on getting the £680 fee together

OP said in January

My overall debt is £32k. I’ve spoken to step change and they advised I would be best to enter into a DMP and have worked out I can afford £330 per month which would take me approx 8 and several months to complete.

I just want to rebuild my financial life and be able to have savings, buy a property and start a family but this is holding me back. I’m constantly worried and don’t know what to do. When I move forward with things such as starting a new job the debt is always hanging over me.

I have no assets (my most expensive item is my Apple Watch) and I have no savings so I’m genuinely wondering if going down the route of bankruptcy and starting afresh would be my best option.

Indecision can be a real burden, you have no assets and no savings, and it’s becoming quite obvious you don’t have £330 burning a hole in your pocket every month with which to pay a (very long running) DMP, your debt is too high for a DRO, and an IVA is out of the question as well.

Only one option left, and that’s the B word, you have already said a debt management plan will take too long, I recon your budget can be tweaked in a few areas, so the chances of an IPA are reduced, get saving the £680 and it’ll likely be the best move you have ever made.

From the information shared - I'd agree with the above. If you decide to go ahead - have a good read up on things to do before, during and after bankruptcy. There are a few things that'll make the process smoother for you. There are plenty of people here with experience that can listen to your story along the way and provide encouragement. Many of us have been in a mess at sometime in our lives - even if we choose not to acknowledge it. There's always a way through for those that are committed to resolving the cause of the issue and starting again from scratch to build up a better financial future.