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red pony
Starting Member
1 Posts |
 Posted - 22 April 2010 : 19:05:31
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I have a huge amount of debt and having been on a DMP for 3 years, I can see that the only way to end this, is to now go bankrupt. The problem i have according to a financial institute is My Car. I have £1250 coming in each month and i spend out £1250 each month.
I am a single mum with 3 kids. I am on income support as my business failed last year. Which has left me owing VAT to HMRC, which i hope will be sorted out soon.
So at the end of last yr hmrc took my tax credits away, so i had to come off my DMP. They have now written to me to say it was a mistake and have re-instated my tax credits, they havnt refunded the months i did not receive any payments for though !!.
So i phoned the DMP people to go back on my plan, but as i have very little disposable income they would not offer me a new DMP.
They said that i should declare bankruptcy (especially as one of my creditors is saying they are going for a charging order for £27,770). I have about 14 creditors and owe around £90k
The problem with bankruptcy is firstly I cant afford the £450 the court said i would need to pay, and secondly the DMP people said that the judge would not agree the bankruptcy as my car costs £254 per month, which leaves me on the bread line and they say likely to get back into debt again.
So my car is on HP, i have paid £9500 and i owe £5350. So i know i could hand it back, but i have been advised to cancel the payments to the car company and save the monthly payments to buy a banger !!!. until they recover the car. Which sounds ok, but i perish the thought of whats going to happen, and i do travel about 40 ish miles each day to visit my ill mother and run my kids around, so i would hate to buy a cheaper unreliable car that will break down.
My house is in my name, i owe £176000 + redemption of £8000 so £184,000 in total and the market value is about £190,000. So after selling costs very little if no equity in the property.
So what do i do........ any advice would be grateful.
1) Keep going as i am, and offer £5 to each creditor every month ?
2) Let them put charging orders on the house - because there's no money in the house ?
3) Hand the car back ?
4) Stop the car payments and hope to save a couple of months money before they take it & buy a cheap car, - THEN file for bankruptcy. |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 22 April 2010 : 19:22:08
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Hi red Pony
welcome to the forum
I would try to get them to hold off your charging order, this could mess you around for later time.
you need urgently to speak to one of the experts to plan your way into bankruptcy ie sort out car, action plan for creditors and action plan for non payment of bills to get car and BR fees.
Time is against you if one of the companies are already at the stage of a charging order, on eof the experts should be able to read the charging order paperwork to see if they are threatening or actually ready top move .
i used paul and his team at reviva they helped put everything in a correct and neat order ready for BR
regards Richard |
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Housing
Senior Member
United Kingdom
1399 Posts |
Posted - 22 April 2010 : 20:51:48
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Hi
I agree with Richard P, you need to seek some sound financial advice NOW.
Reviva UK are amongst the best and they post here regularly nd are respected by this site. Give them a call - ask for Ken or if next week you can also speak to Paul who is away this week. Their details are listed with the experts on the left hand side.
Your situation is complex and do not risk getting the best out of BR without seeking assistance
I wish you well, Richard
"There are no problems - only solutions" |
Edited by - Housing on 22 April 2010 20:53:18 |
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I want to go Bankrupt, but advised i cant
