Bankruptcy while in debt management plan

Darthmark

I have a debt management plan (DMP) but its getting increasingly more difficult to keep up with payments. I haven't worked since Dec 2022 because of illness so am in receipt of PIP. The DMP company have reduced payments but of the £90 I pay monthly they take 50% for commision. Is this normal or can I go bankrupt still as its getting problematic and at this rate, I am due to finish paying off the 22k debt when I am 85 (54 now) if i'm still alive. Also, will the bankruptcy affect my girlfriend who owns her own park home. Coincidentally, I care for her and get carers allowance. My main worry is that my debt which I had before I met my girlfriend will affect her and her home.

Grumpelstiltskin

Right Cancel your payments to the leeching debt management company NOW

You should NEVER pay these leeches when a charity can run a plan without charging you.

Don't think of going bankrupt for a relatively small  amount go over to the Debt Free Wannabe board for their advice.

Link to DFW board.

Debt-free wannabe — MoneySavingExpert Forum

Darthmark

How can I just stop!!! I have been paying for around 2 and a half years now. Won't the 7 companies I owe get bailiffs etc. its extremely worrying 

Darthmark

Cant I just declare bankruptcy and be done with all the stress. Or will this just affect my girlfriend who is registered disabled

Grumpelstiltskin

You just cancel the payment, you won't get bailiffs at your door, don't believe all you see on TV.

Bankruptcy is not the answer you probably qualify for a DRO, none of this will affect your girlfriend as long as you don't have any joint accounts.

Go over to DFW section.

Darthmark

ok will do. I will look at other options.
Thanks

RAS

You really do need to head over to the DFW forum where you can get some general advice. You've obviously been fleeced this last 2.5 years by a debt company. That money is probably gone but the sooner you stop paying the better.

It's possible you qualify for Debt Relief Order (DRO), but it may also be that you could ask for debt write offs. And if you want to do a DMP, then do a free one, or self manage.

Get you credit records (free via the MSE advice pages) to check that they are defaulted. It's possible that they aren't which means the creditors can't even take legal action.

fatbelly

You can declare bankruptcy. Costs £680

You can go for a DRO if you qualify. From next week they are free.