What are my options?

What2do2025

Hi, I'm considering my options - Have been online with Stepchange and the three options were 1) DMP, 2) IVA and 3) Bankruptcy, I'm thinking bankruptcy might be my preference given I have no assets and would like to be debt free and fresh start by 46. 

Whole host of reasons for my situation (£93+k) in debt, I'll not list them and I know I ultimately have to take responsibility it, I'm embarrassed to be in this position. I'm fortunate enough to have a good salary with a take home of around £3500. 

I have included my SOA below, my questions are:

1) Is bankruptcy my best choice?
2) I have an NHS lease car that pre tax comes out of my salary at £790 per month although in reality only reduces my take home by apx £500 - will the OR allow me to keep this, needed for my job, high penalty for return and rental includes everything / no credit agreements. Lease have said I am able to keep it for the duration. 
3) Does my SOA look ok, My partner who is autistic with severe and enduring MH issues stays with me 5 days a week and doesn't make any contribution. I share a rented house with one other and everything house bills / rent wise is split 50/50. Medical is high as on weight loss at the moment.
4) I could self manage a DMP?

I'm not currently defaulting on any of my accounts, have been moving around zero interest and not facing up to the situation but this is about to come to an end. I'm thinking of stopping all payments next month and building a bit of a buffer before applying for bankruptcy in the new year.

SOA:

font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 0[b]

Monthly Income Details[/b]
Monthly income after tax................ 3500
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0[b]
Total monthly income.................... 3500[/b][b]

Monthly Expense Details[/b]
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 825
Management charge (leasehold property).. 0
Council tax............................. 90
Electricity............................. 50
Gas..................................... 50
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 0
Mobile phone............................ 10
TV Licence.............................. 15
Satellite/Cable TV...................... 25
Internet Services....................... 35
Groceries etc. ......................... 400
Clothing................................ 30
Petrol/diesel........................... 40
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 80
Other travel............................ 20
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 200
Pet insurance/vet bills................. 50
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 30
Entertainment........................... 30
Holiday................................. 30
Emergency fund.......................... 25
Gym..................................... 30
HCPC (Prof fees) ....................... 11
Union .................................. 32
Logs (heating).......................... 25[b]
Total monthly expenses.................. 2198[/b]
[b]

Assets[/b]
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0[b]
Total Assets............................ 0[/b]
[b]
No Secured nor Hire Purchase Debts[/b]

[b]Unsecured Debts[/b]
Description....................Debt......Monthly...APR
MBNA CC........................11198.....505.......29.6
Virgin CC......................9180......300.......24.9
Virgin CC......................4200......150.......24.9
Very ..........................2699......134.......0
Fluid CC.......................1600......50........0
Tesco CC.......................6383......200.......0
Updraft Loan...................11130.....252.......0
Zopa Loan......................14054.....250.......0
MBNA Loan......................5573......172.......0
Monzo Loan.....................21041.....460.......0
John Lewis CC..................6758......300.......24.9[b]
Total unsecured debts..........93816.....2773......-  [/b]

[b]
Monthly Budget Summary[/b]
Total monthly income.................... 3,500
Expenses (including HP & secured debts). 2,198
Available for debt repayments........... 1,302
Monthly UNsecured debt repayments....... 2,773[b]
Amount short for making debt repayments. -1,471[/b]

[b]Personal Balance Sheet Summary[/b]
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -93,816[b]
Net Assets.............................. -93,816[/b]

[i]Created using the SOA calculator 

fatbelly

You definitely need to stop paying these - you can't afford them and bankruptcy has a £680 upfront fee

My other comments are here

https://forums.moneysavingexpert.com/discussion/6635136/what-are-my-options#latest

ManyWays

When does the lease car end? Would you be able to get another one through work if you were bankrupt? 

If you go for a DMP you may be able to win quite a few affordability complaints, but realistically will still have a lot of debt left. 

What2do2025

fatbelly said:

You definitely need to stop paying these - you can't afford them and bankruptcy has a £680 upfront fee

My other comments are here

https://forums.moneysavingexpert.com/discussion/6635136/what-are-my-options#latest

Thanks fatbelly - appreciate your comments / ideas, only after discovering DFW I'm now wondering if a self managed DMP might be the way forward. My current plan is to stop making all payments from next month, do some saving and take back control while I consider my options.

What2do2025

ManyWays said:

When does the lease car end? Would you be able to get another one through work if you were bankrupt? 

If you go for a DMP you may be able to win quite a few affordability complaints, but realistically will still have a lot of debt left. 

Hi ManyWays - Lease is due to end in August 2026, yes I'll be able to get a replacement, no credit checks and straight from source so no issue +all the tax benefits of coming out pre tax. While I plan a smaller more affordable vehicle there is sense in having the lease are at a certain value to offset higher tax.

Tell me about affordability complaints... assume these will be with CCA's? I'd like to know more about managing a DMP myself, building an emergency fund and being able to clear some of these debts with better one off payments perhaps?

What2do2025

What2do2025 said:

Hi, I'm considering my options - Have been online with Stepchange and the three options were 1) DMP, 2) IVA and 3) Bankruptcy, I'm thinking bankruptcy might be my preference given I have no assets and would like to be debt free and fresh start by 46. 

Whole host of reasons for my situation (£93+k) in debt, I'll not list them and I know I ultimately have to take responsibility it, I'm embarrassed to be in this position. I'm fortunate enough to have a good salary with a take home of around £3500. 

I have included my SOA below, my questions are:

1) Is bankruptcy my best choice?
2) I have an NHS lease car that pre tax comes out of my salary at £790 per month although in reality only reduces my take home by apx £500 - will the OR allow me to keep this, needed for my job, high penalty for return and rental includes everything / no credit agreements. Lease have said I am able to keep it for the duration. 
3) Does my SOA look ok, My partner who is autistic with severe and enduring MH issues stays with me 5 days a week and doesn't make any contribution. I share a rented house with one other and everything house bills / rent wise is split 50/50. Medical is high as on weight loss at the moment.
4) I could self manage a DMP?

I'm not currently defaulting on any of my accounts, have been moving around zero interest and not facing up to the situation but this is about to come to an end. I'm thinking of stopping all payments next month and building a bit of a buffer before applying for bankruptcy in the new year.

SOA:

font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 0[b]

Monthly Income Details[/b]
Monthly income after tax................ 3500
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0[b]
Total monthly income.................... 3500[/b][b]

Monthly Expense Details[/b]
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 825
Management charge (leasehold property).. 0
Council tax............................. 90
Electricity............................. 50
Gas..................................... 50
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 0
Mobile phone............................ 10
TV Licence.............................. 15
Satellite/Cable TV...................... 25
Internet Services....................... 35
Groceries etc. ......................... 400
Clothing................................ 30
Petrol/diesel........................... 40
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 80
Other travel............................ 20
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 200
Pet insurance/vet bills................. 50
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 30
Entertainment........................... 30
Holiday................................. 30
Emergency fund.......................... 25
Gym..................................... 30
HCPC (Prof fees) ....................... 11
Union .................................. 32
Logs (heating).......................... 25[b]
Total monthly expenses.................. 2198[/b]
[b]

Assets[/b]
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0[b]
Total Assets............................ 0[/b]
[b]
No Secured nor Hire Purchase Debts[/b]

[b]Unsecured Debts[/b]
Description....................Debt......Monthly...APR
MBNA CC........................11198.....505.......29.6
Virgin CC......................9180......300.......24.9
Virgin CC......................4200......150.......24.9
Very ..........................2699......134.......0
Fluid CC.......................1600......50........0
Tesco CC.......................6383......200.......0
Updraft Loan...................11130.....252.......0
Zopa Loan......................14054.....250.......0
MBNA Loan......................5573......172.......0
Monzo Loan.....................21041.....460.......0
John Lewis CC..................6758......300.......24.9[b]
Total unsecured debts..........93816.....2773......-  [/b]

[b]
Monthly Budget Summary[/b]
Total monthly income.................... 3,500
Expenses (including HP & secured debts). 2,198
Available for debt repayments........... 1,302
Monthly UNsecured debt repayments....... 2,773[b]
Amount short for making debt repayments. -1,471[/b]

[b]Personal Balance Sheet Summary[/b]
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -93,816[b]
Net Assets.............................. -93,816[/b]

[i]Created using the SOA calculator 

I have also omitted / thought about my wider situation, I have been paying for my bothers rent for the past 5 years, long story but we lost a sibling, he now lives abroad with his three kids but doesn't have stable work, it's V low compared to mine / here. It's £350 a month, I'd like to see it as essential so if I added to my SOA would take my rent up to £1,175 I don't expect any formal solution (IVA or BR) to accept this but if self managing would creditors even question that total rent? 

MEM62

What2do2025 said:

ManyWays said:

When does the lease car end? Would you be able to get another one through work if you were bankrupt? 

If you go for a DMP you may be able to win quite a few affordability complaints, but realistically will still have a lot of debt left. 

While I plan a smaller more affordable vehicle there is sense in having the lease are at a certain value to offset higher tax.

No, there isn't.  Are you really claiming that spending £60 to save £40 is a financially prudent decision?  (Assuming is is the 40% tax band we are talking about)  With your level of debt you should not even be considering spending £500 a month on a car.  This is a good example of the kind of decision making that needs to change if you want to improve your situation.