Just looking for some clarity on DMPs

sourcrates

A lot of people enter insolvency thinking they can get by on a bare bones budget, and time and time again they get proved wrong, its just not doable, an IVA is 60 months long minimum, that`s a very long time on a very tight budget,

They also fail to take into account the fee`s charged in every IVA, fee`s alone will amount to between 5k & 8k, so there will be nothing left for the creditors, you`ll just be able to pay the fee`s and other sundry amounts, the creditors will get nothing, which is why they won`t agree to it.

"Thank you but what’s the right write off route"? 

It involves writing to them and asking them to write off the debt due to your inability to service them, you ask them to take a commercial decision to write them off, as you will never be able to repay what you owe, so your only other option is bankruptcy, see what results you get from that.

sonnet72

thank you Socrates, has this WRITE off solution worked for people? I’m assuming so because you won’t be suggesting it. Just thinking out loud, why would creditors just write off  my entire debt without forcing me to go bankrupt and at least see if they can recover something? 

sourcrates

sonnet72 said:

thank you Socrates, has this WRITE off solution worked for people? I’m assuming so because you won’t be suggesting it. Just thinking out loud, why would creditors just write off  my entire debt without forcing me to go bankrupt and at least see if they can recover something? 

Yes, obviously depends on your circumstances, but affordability is paramount to lenders these days, if repayment is not possible within a reasonable timeframe, due to insufficient income, health issues etc, then write offs are a genuine thing.

You must look at thee things logically, no one will ever force bankruptcy upon you, as there is nothing in it for them, only HMRC do that just because they can, they can waste public money doing so, where private companies are concerned, they usually have to answer to shareholders, so wasting money is a big no no.

Grumpelstiltskin

Why would they force you to go bankrupt if they know you couldn't repay anything?

Please slow down and start to think straight.

sonnet72

Grumpelstiltskin said:

Why would they force you to go bankrupt if they know you couldn't repay anything?

Please slow down and start to think straight 

I really am not thinking straight. I’m on tablets for anxiety and pls don’t think I’m playing the victim card , but this is really taking a toll on my mental health. 

 Do you think a charity like SC and PP will be able to write to them on my behalf? Only because my ‘not thinking straight’ is impacting on my ability to communicate in the best way 

sourcrates

sonnet72 said:

Grumpelstiltskin said:

Why would they force you to go bankrupt if they know you couldn't repay anything?

Please slow down and start to think straight 

I really am not thinking straight. I’m on tablets for anxiety and pls don’t think I’m playing the victim card , but this is really taking a toll on my mental health. 

 Do you think a charity like SC and PP will be able to write to them on my behalf? Only because my ‘not thinking straight’ is impacting on my ability to communicate in the best way 

That`s not really what they do, they are "bulk debt advice organisations" obtaining write offs and informing creditors of mental health issues is something worked out between you and either your Doctor, or a one to one advisor at CAB for example.

sonnet72

Ok I’ll speak to both

RAS

sonnet72 said:

Thank you everyone for your responses. 

 Ok so I spoke with a PayPlan advisor yesterday and she is advising either bankruptcy or Iva but she’s suggesting bankruptcy if the better option. She believes that creditors cannot prove a beneficial interest in my home as its solely owned by my husband, I never paid towards the deposit, never contributed to the mortgage, yes I’ve paid council tax on and off but  she said that’s not enough to claim beneficial interest. My husband has never said verbally or in writing that I have a beneficial interest. 

I’m taking scared about backstory, I’m visiting my local CAB today. 

The PayPlan officer noted my income, she included carers allowance , child benefit for 1 child which will expire this December, plus council tax reduction, then she deducted expenses came out with a figure of £116 left after essential expenses to go towards debt .  She never included my husband’s income but she accepted that my expenses were taken care of  by him so didn’t add things like utility bills as expenses  that I have to pay. 

I’ve realised now that I didn’t include my eBay account where we buy and sell items regularly. I know it’s not a proper job but we do make circa £500 a month ( my husband mainly sells in that account but the payment goes into one of my bank accounts which is solely for eBay - we set it to so that we can do a tax return if they ask for it) 
ok so I’ll add that to my income but I must admit I was very frugal in my expenses because I was worried I’ll have nothing left for debt repayment. 

Realistically I think I’ll have £ 350 left then that will reduce to £250 after December. 

Does that make Iva a better option to bankruptcy 

This worries me. Apart from your carer's allowance, you have no income. Child Benefit is for your child, not to fund your debts, whatever Payplan seem to think.

And you don't earn £500 per month buying and selling things. How much does it cost to buy the stuff you sell? 

You need to move the ebay income from your husband's sales into his name, as that's not there to pay your debts either. And if you are on carer's you need to be very careful how much income you really earn each week.

Please slow down, stop and think of the implications of every little thing. If you are struggling, please come here to talk it over. 

Get your income and hubbie's fully separated.

And if you are trading, your income is your profit after paying for the goods and delivery, less any tax you have to pay, not your turn-over.

sonnet72

Honestly I’m so thankful to have you guys to listen to me. So my new plan: 
I have 3 loans 
3 overdrafts 
i can pay one overdraft off with help from my brother,  and the other 2 are with NatWest- I have 2 bank accounts with them plus one of the loans. 

Now if I gather evidence from my doctor it will probably not say that he thinks I can’t make financial decisions but he will (I’m sure) say that I’ve suffered from anxiety for several years and currently - for the past 2 years I’ve been under considerable stress- one of my autistic children is refusing to eat and it takes HOURS to hand feed him each of his meals, on top of that he has a tendency to abscond and we’re always on edge. He requires all of his personal care to be done by me unless he’s at his daycare centre. The daycare has been operating on reduced hours since Covid- previous to that it enabled me to work, now I just can’t go out to work. My other son has mental health issues on top of his autism and requires lots of emotional support just to stop him thinking of killing himself- so the anxiety of my debt is just that one thing too much for me handle now, I can’t focus and the not focusing led to the bad decision making with the getting loans and trading mistakes. 

The above plus I don’t have much income is what I’m going to write in my debt write off plea letters to the 3 loan creditors only. The NatWest overdraft will also be covered when I write to NatWest. 

I plan to include a list of my prescriptions and the expense assessment by pp

Do you think I’m getting on the right path of hopefully doing something that might actually help? Should I get my dr involved, or just include the above information myself or leave it out? 

Should I approach 1 lender at a time? Finally I’ve never missed a payment, should I miss a payment or get this done ASAP? 

Thank you in advance 

Grumpelstiltskin

Please stop trying to think you an afford to pay something towards your debts, you cant.

Do not involve any other family members in your schemes, please stop paying everything and write ASAP to all your creditors, all of this after you have told your husband.