Long-Term DMP?

lisa-r_4

Hi everyone,

I'd really appreciate your opinions. I really need some peace of mind that i'm doing the right thing. I've been advised to go down the bankruptcy/sequestration route, would much prefer to do a DMP, but am I being naive? I owe a HUGE amount, and from looking through previous threads can't seem to find anyone on here that has sustained a long-term DMP for such a large amount that I could take inspiration from. My post regarding my current, shameful situation is here:

http://forums.moneysavingexpert.com/showthread.html?t=982905

(I can copy and paste it if that would be easier.)

I'm due to go on holiday in a couple of days, and would love to be able to leave knowing for sure what i'm going to do, so I don't spend my entire holiday pondering over it and beating myself up about the fact that i'm even HAVING to ponder in the first place! I'm literally making myself ill with worry.

rayday2

If you don't feel happy with bankrupcy then don't do it. People advise this because on paper and common sense wise it makes sense to get rid of things as quick as possible.

But you are a human with feelings, why don't you do a DMP for a while and keep the idea on a back burner. I am on a DMP and I think its about 19 years at current ways of paying. But I know it will be paid quicker than that and my earnings will change.

RAS

Lisa

Why do you have to decide on it now?

If you want to go BR, do it.

If you are not sure, then you could set up a long term DMP with one of the debt charities. If it works for you and your income increases, then fine.

If it does not work out, you still have the option of going BR later, iuf it feel right at that time. Which is also fine.

lisa-r_4

Thanks Rayday.

That's what I keep thinking - what if my earnings increase/my business survives the Ebay axing etc. But when I said this to CCCS/CAB they just kept saying i'd be silly not to go bankrupt, that my creditors might do the job for me anyway, and that my DMP is "unrealistic". I mean I know it is at the moment, but it mightn't be a couple of months down the line!

I think the other thing is that i've had an awful couple of months, and as a result my confidence and self-esteem has taken a real blow, not to mention my motivation. I'm just not my "usual self" at the moment.

lisa-r_4

Thanks RAS. You're right - I just got myself in such a state after CCCS told me my creditors were likely to bankrupt me anyway, that I immediately went into panic mode. Before they scared me I didn't care whether a DMP took 10 years or 100 years, so long as I had a better quality of life than I do currently.

rayday2

If your creditors don't accept a DMP they will take you to court to get a CCJ then the judge normally awards what your payments are anyway to them. This is usually the worst to happen. It is very rare for companies to make you bankrupt as I believe it costs them.

At the moment it may be unrealistic but in the future could be different. What do you mean about Ebay axing? Sorry if I sound nosey.

I can truely see the honour in what you want to do and if you feel more comfortable doing a DMP then that is your course of action at least doing that then you can change your mind. Very hard to change your mind from bankrupcy!

If you can't get a company to help you, you can also go it alone which I did long before I joined this site. Its not that hard at all and you sound business minded.

Deep_In_Debt

I'm on a DMP with CCCS and February when I started it, it was estimated that it would take 9 years to clear my debts. I've since had a pay rise, upped my payments, changed my lifestyle and can afford more and it's now reduced to 7 years. However, I will be mortgage free in 5 years and intend to be debt free by then. I was told that my dmp was unrealistic but I've managed to reduce the term in just a few months with the help of this forum and you can do too.

Things will get better for you. I know how you feel about the self-esteem thing. I've been through similar and sometimes I fall off the DFW wagon, but get back onto it again before it leaves my station. Good luck and keep posting.

lisa-r_4

That's EXACTLY true about the changing my mind thing. Yet another aspect of bankruptcy that terrifies me!
Basically at the moment Ebay are axeing small sellers like crazy since their recent management takeover and feedback rule changes. To summarise, they introduced a star rating which effects feedback counts, and if your 'Buyer Dissatisfaction' rating in any 30 day period falls below 5% (based on how much feedback/star ratings you've received, as well as other factors they keep at their "discretion") you're suspended indefinately. They tell you at the time that if you're able to "increase buyer satisfaction" they'll consider keeping you, but if not you're "sacked". Unfortunately as they immediately remove your listings and there's no way of removing feedback/changing star ratings, that's the end of it. It took 1 negative from a non paying bidder and 1 neutral from a happy buyer to end my 10 year Ebay career, along with thousands of others recently. Rumour has it they want to rid the site of small sellers and make it more corporate, like Amazon etc.
CCCS have started me on a low-start DMP, but are reviewing my sitation in a couple of months. But i've to seriously consider "the alternatives" in the meantime. I just didn't get any kind of encouragement from them at all, which is what I really needed.

ANY_CHANCE

just thought i would put my story in for you

we were in 50,000 unsecured debt we can only afford 221.00 per month 19 years to repay (if the flaming halifax didnt keep adding 300 pm in interest).

To increase our long term income i am now a student nurse hoping for a job with higher earnings at the end of 3 years.

We are managing (just about) no frills no going out just working looking after the children and not alot else. It does make me wonder if we should have halved our debt with IVA or gone bankrupt, it would have been over with quicker. With an IVA we certainly would have had less debt and completed sooner.

However i do not know the finer details of being on one of these options or how it affects your circumstances during or afterwards.

Good luck with whatever you decide to do - its not easy but youll get through it x

lisa-r_4

Thanks DID, your wagon analogy made me laugh! Which incidentally I haven't done since CCCS terrified the life out of me! Everything just seems so bleak and miserable right now, but your encouragement makes me feel much more optimistic for the future. Because i'm self-employed i'm pretty isolated too, which probably doesn't help as it makes me think and worry too much! I'll definately keep posting - finding this message board has been a turning point for me. Perhaps if I follow all you DMP'ers money saving/making advice and cost-cutting tips as well as concentrate on my business/take on another job etc i'll be fine.

lisa-r_4

Thanks AC. I'm sure your DMP would have been looked on as "unrealistic" by CCCS etc too, but you've done well for yourself and are coping, as i'm sure I will too if I put my mind to it. Best of luck with your studies - your story has definately inspired me.