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soooo scared
Starting Member
United Kingdom
19 Posts |
 Posted - 05 January 2009 : 15:09:42
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| I'm having second thoughts. I know BR is the only way forward for me as i have a shortfall of £1300 a month but i'm not sure if it's worth the risk of opening up a can of worms that i think is probably best left where it is. I'm thinking of a debt management plan. How do these work? Does interest stop with this? I owe 41k and on benefits, i have no assets of any great value but the fear of BR is too great. |
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John
New Member
United Kingdom
73 Posts |
Posted - 05 January 2009 : 15:20:02
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Hi
if you are on benefits alone then it is unlikely that any reputable DMP company would take on your case, nor would any IP with a view to IVA.
Both of these solutions rely on disposable income being available. In DMP most companies will need to see a minimum £140 payment. In IVA against a £41K debt the repayments would need to be around a minimum £230 per month mark.
Can you afford either of these?
The DMP would last well over 20 years at the repayment rate quoted and the IVA figure is based on a 6 year repayment plan.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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John
New Member
United Kingdom
73 Posts |
Posted - 05 January 2009 : 15:29:51
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Hi
further to your question, interest can be frozen by a creditor in a DMP but the decision to do so or not is made on an individual creditor by creditor basis. They are far from compelled to do so and even if they do they can change their stance at any time as DMP is an informal arrangement.
Likewise a creditor can refuse to continue with a DMP at any stage and usually review the position every 6 months.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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soooo scared
Starting Member
United Kingdom
19 Posts |
Posted - 05 January 2009 : 15:30:57
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| My husband is dissabled and gets dla and i get carers allowance which gives us £105 a week more than the basic benefits. I'm not saying this is disposable income just that it is more than what the government say we need to live on. Also with BR the or could take this for 3 years anyway. Am i correct or am i missing something? |
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John
New Member
United Kingdom
73 Posts |
Posted - 05 January 2009 : 15:33:27
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Hi
your husband's DLA is not considered income.
Although he must disclose the receipt of this payment in his SoA the OR is not going to include that sum as income, thus it is very unlikely that either of you will get an IPA.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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soooo scared
Starting Member
United Kingdom
19 Posts |
Posted - 05 January 2009 : 15:39:45
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| Ok thanks John. Think BR is my only choice then. I'll just have to take the risk. |
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Cakietin
Junior Member
United Kingdom
278 Posts |
Posted - 05 January 2009 : 15:46:04
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Hi soooo scared
Your situation is exactly the same as mine...hubby disabled and I'm the carer, no assets. We went bankrupt in December and although it was scary it feels a whole lot better now. On your SoA include everything outgoing expense you can so that your disposable income is less than £100 a month. The guys on here were great and helped me out with some of the figures, so it is worth posting yours on here before you submit the SoA.
Hope that helps.
Kind regards,
Amanda |
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soooo scared
Starting Member
United Kingdom
19 Posts |
Posted - 05 January 2009 : 16:04:29
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| To be honest if i do have to pay an IPA that would be the least of my worries !! I just want a fresh start i have been stupid and foolish and it will never happen again but the OR will want to know how we got so much debt when we are on benefits, so many questions will be asked. Is it worth it? |
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Cakietin
Junior Member
United Kingdom
278 Posts |
Posted - 05 January 2009 : 18:53:50
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I haven't had my interview yet...this month though so I can give let you know what happens. I feel stupid and foolish and honestly don't know what I am going to say when asked a lot of the questions about our debts. I guess being honest is the best thing I can do.
Only you can decide what is best for you. Just know that you are not alone. That's what I have found by posting on this forum...there are so many other people out there who are going through or have gone through what you are.
Kindest regards,
Amanda |
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pix1
Average Member
689 Posts |
Posted - 05 January 2009 : 19:28:11
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soooo scared,
Grat advice has been given to you by John and Cakietin.
Assuming you do not have assets worth many thousands bankruptcy looks like the best option. You are right that it is a big step and has all those negative connotations. We all go through the stage of weighing these things up. There are no guarantees in BR but you will be treated fairly and the officials involved are usually well mannered and polite (some on this forum have had some bad experiences, though, e.g. in Maidstone!). I don't think you will get any kind of an IPA if you only get benefits but, as John says, these benefits must be declared on the form. The great thing is that all your debts (non fraud and student loans, that is) will be written off. You can also come on here for advice whenever. |
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soooo scared
Starting Member
United Kingdom
19 Posts |
Posted - 05 January 2009 : 20:06:41
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| We have a loan from social security is this included? They take the money from our benefits each week. |
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pix1
Average Member
689 Posts |
Posted - 05 January 2009 : 20:22:57
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| Would you want to include this loan as a debt in the possible bankruptcy? How much is it and how long still to run? I don't know if you would be allowed to keep up payments on a loan social security during bankruptcy. It might be worth finding out how bankruptcy would affect that loan by asking the social authority concerned. Of course, you wouldn't want to alert them you might be about to go bankrupt. This all points to the fact that you are on a low income and cannot afford all the creditors. |
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second thoughts
