The Big Decision – Bankruptcy or DMP (Long post)

KITTY_2-2

Having hung around the site for a long time picking up tips, I finally decided to do something about my debts.

Last weekend I went through the house collecting all my financial paperwork (including the unopened bills) and wrote everything down. Then I calculated how much I pay, how much I owe and my general living expenses. It made for scary reading. I couldn’t believe how much money I’ve borrowed over the last 21 years. I still remember the thrill of getting my 1st credit card. I was 19 and a student nurse. I wish I’d known then where 40 would find me!

I am now a civil servant on a career break, as my youngest son currently needs a full time carer (he’s 13 and has cerebral palsy) I also have a 15 year old daughter and I’m a single parent. I receive no maintenance from my soon to be ex as our eldest child (17) lives with him and the CSA thought that a payment of NIL was acceptable………:mad:
As such I lived on my credit cards for quite some time and now I just can’t do that anymore.

I have cut our expenses as much as possible. I cancelled our magazine subscriptions and gym membership; use less petrol, gas, electric and water; I used the Old Style boards to get tips on cleaning and cheaper meals, and I have cut our shopping from over £100 each week to about £70. I’m working on it going down to £50 which would give me more to put towards my debts.

Anyway when I’d recovered from the shock of seeing my debts on paper I used the debt advice form on the CCCS website to try to work out my options. After speaking to a really nice man who went through my figures with me I received my debt remedy.

The options basically are in the title, I’m just unsure what to do next. I’ve been on the courts website and got the bankruptcy information, which looks pretty tempting I must admit. I’ve also looked at the DMP suggestion, which at £166 per month will take 17 years and 5 months to clear! :eek:

So what I’m asking is what people’s thoughts on the 2 options are? Should I bite the bullet and commit to paying the debts for the rest of my working life? Or swallow what’s left of my pride and go down the bankruptcy route? I know there are many people here who have been faced with the same decision and I’m interested to know how you made your choices.

Thanks for reading :A

mrsclecoco_2

Hi Kitty i'm pretty new here too but the experts will be along in a bit. Well done for posting and having your light bulb momnet. It's very scary but you wil recieve loads of help and advice here.

I'm currently on a DMP £266 a month for 12 years curently. a very scary prospect but I havn't even considered bankrupcy it's just not for us. I love my home too much and i my pride.
That is just my opinion and everybodys circumstances are different you have to work out what would be best for you. I'm sure all the lovely people on here will help
mrs c xx

Sassamac

can I ask your total debt?
There is a middle ground which is an IVA, something thats only worth doing if you have a hefty debt and 17 years worth does seem a lot of debt.
Do you have anything to lose by going bankrupt? - home (mortgage), car (HP) etc.

welshpaula

for me bankruptcy was the best option as i didnt have any assets ,it wasnt an easy step and i am not proud of it but nearly all my debt was like you being on my own bringing up 2 kids with no financial help ! its the best thing i did my nerves are now getting back to normal !! good luck any questions feel free to pm me paula x

SortingIt_2

Hi Kitty,

Welcome and well done for posting. It's so scary looking at it all down on paper and realises the extent of things.

I currently have just under £60K of debt and pay £787 a month via payplan on a DMP. I have am now on my 4th payment and all of my creditors have agreed to my DMP and interest stopped so I can now look at my debt going down over the coming years...hopefully!

It scary deciding what to do but you have definately come to the right place and there are so many people who will help you.

How about posting a full SOA - you'll be surprised where how helpful people are and you'll get loads of suggestions!

Good luck xx

stapeley

I would go for BANKRUPTCY in your situation .If you go for DMP theres always going to be people on your back asking for money . Go for a new start . Good luck

KITTY_2-2

"can I ask your total debt?"

My current debts are 17k of my own and 16k with my ex. As we are jointly and severally (sp?) liable, I have been advised that these should get just a token amount with the bulk of my payment going to my individual creditors.

CCCS have helped me with the amounts on my budget - even advising me to add in some bits I hadn't considered such as christmas savings, birthdays, repairs etc.

I should say that I live in a council provided adapted bungalow, so my tenancy is secure if I decide on bankruptcy. My car is an adapted van through Motability so I only have petrol and minor repairs to pay for and this also could not be taken as an asset.

My main worry with bankruptcy is if it would affect my job when I go back - which I have to :rolleyes: I intend to contact my union to find out the rules as I seem to remember that Civil Servants couldn't continue to be employed if they were bankrupt. Does anyone know??

fermi

KITTY wrote: »

My main worry with bankruptcy is if it would affect my job when I go back - which I have to :rolleyes: I intend to contact my union to find out the rules as I seem to remember that Civil Servants couldn't continue to be employed if they were bankrupt. Does anyone know??

Most positions should be OK as long as you disclose the bankruptcy, but check with the union/HR dept.

I've even heard off the odd person or two ok'ed for posts that require a 'certain' level of clearance.;)

movingforward2010

KITTY wrote: »

My main worry with bankruptcy is if it would affect my job when I go back - which I have to :rolleyes: I intend to contact my union to find out the rules as I seem to remember that Civil Servants couldn't continue to be employed if they were bankrupt. Does anyone know??

well im sort of considering bankrupcy:o but hopefully i'll be able to a DMP.

Im also a civil servant of AO grade for JCP, ive phoned HR and they said 'its up to your manager if you are able to do the job, but its best to be honest and upfront' (guidance on the Intranet also reflects this), so out of curiosity i spoke to my line manager on monday and explained the situation, she just said 'she could see a problem but would have to check' she didnt seem remotely bothered

hope this helps

xx

KITTY_2-2

wxmlad - "Im also a civil servant of AO grade for JCP, ive phoned HR and they said 'its up to your manager if you are able to do the job, but its best to be honest and upfront' "

Thanks for the advice wxmlad. I do not want to speak to my manager about this if at all possible. She's great at her job but not with people Also she won't be my manager when I do get back to work. I am currently an EA on a career break from DCSF and when I go back will be a priority mover (no permanent post when I left due to reshuffle) so will have to find a new post. Depending on where that will be will depend on whether I inform the new section if I go for the Bankruptcy option.

I'm really confused at the moment

susieh_2

Hi

I'm another civil servant for JCP, who joined post b/r & had to declare it on the acceptance forms. A lady then rang from Sheffield and said she thought it would be a problem, I had to send discharge papers and wait an agonishing 2 weeks for the all clear. Like the others have said, if you decide to go down this route, it would probably be better to check beforehand, I know it's hard to admit your debts but at least you know where you stand.

Best of luck


Susieh

Sorry forgot to say that new business rules are being announced tomorrow & we've got an hours closure to go over & read them I'll see if theres anything in them that might help.