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Michael hd
Starting Member
4 Posts |
 Posted - 16 July 2009 : 22:04:49
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Hi
I dont have the biggest debt problem, i only owe about 14000
The problem is with paying it back. Over the last 3 years i have tried a dmp but ended up getting payday loans ect when i had a bad month.
If i carry on the plan it could take over 14 years to clear.
With my second child on the way things are getting harder, i have phoned different places for advice and they all seem to say going bankrucpt is a good idea as i havn't got much to lose.
I have considered this as a option but rasing the money could take a while.
I'm very confused on the best way to approach my problem, i would be grateful for any help.
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 16 July 2009 : 22:37:06
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Hi Michael and welcome to the forum
The right solution will really depend upon your individual circumstances which includes assets and disposable income.
I suspect that if a dmp is already tight then an IVA is not possible, which leaves either Br or a Debt Relief order.
If you owe 15k or less, have no assets andeffectively no disposable income ( which may well be the case with the new arrival ) then the debt Releif Order may well suit.
These are administered by the CAB so really suggest making an appointment to have a chat with them.
The good thing is that they cost a lot less than Br
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
Real People ..... Real Debt Solutions |
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Michael hd
Starting Member
4 Posts |
Posted - 17 July 2009 : 06:00:36
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Hi
I have looked into a Debt Relief order.
The biggest problem i have with it is my income, always have been my income.
On a standard wage i have less then £50 left each month but due to my job i somtimes get extra money or overtime which is not gantered.
Trying to explain this to creditors ect is always been hard.
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Edited by - Michael hd on 17 July 2009 06:01:05 |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 17 July 2009 : 08:14:40
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Then if you have already reviewed this option you choices are either a debt management plan - but as you say this may take 14 years or so - or personal bankruptcy.
Bankruptcy will obviously have a serious effect on your credit history but will allow you to restart your life.
The consequenses of Bankruptcy are:-
Can't hold public office ( during the Br period)
Can't do certain jobs ( solicitor, banker etc)
Will effect your credit history ( I assume you are unable to borrow money today anyway so not a major change there)
There is also the emotional impact ob Br which effects people differently and is often not discussed.
Incidentally I have a client who was discharged 7 weeks ago and has now qualified for HP on car finance. It is at a high interest rate but nevertheless they can now start to rebuild their credit scores.
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
Real People ..... Real Debt Solutions |
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Daniel Griffiths
Junior Member
United Kingdom
268 Posts |
Posted - 18 July 2009 : 11:29:20
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| I would try and hold off a while, for a debt relief order. These orders will need to be very soon modified as to date they have failed to be of any use whatsover. The CAB is Stoke on Trent despite having hunders of requests for these since April have yet to conclude on ONE successful application due to its constraints. If you can hold off a while, (and if you have no property for a charging order then you can) bankruptcy costs five times more than a debt relief order. If you cannot hold on then the CAB or the CCCS can put you in a little debt management plan until a DRO becomes a solution, the only obstacle is your £14000 in debt with interest can topple £15000 in a short perod of time. |
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Angela Rosler
Starting Member
United Kingdom
20 Posts |
Posted - 19 July 2009 : 05:39:24
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Hi Michael hd
If you can reasonably manage around £200 a month and have 3 or more creditors, an IVA may be an option - usually concludes matters in 5 years, but you indicate that several places have recommended BR and if my quick calculations are that your DI is less than £100 - and your circumstances are unlikely to improve - BR is a viable alternative.
Hope you can resolve something to enjoy your anticipated arrival!
Angela Rosler
Debt Counsellor
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 19 July 2009 : 13:38:09
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CAB are not the only people to do debt relief orders. I believe Baines and Ernst are authorised to do so as well.
Have a look at this site:
http://debtrelieforder.org.uk/
The glimmer gets brighter all the time
Jan
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Angela Rosler
Starting Member
United Kingdom
20 Posts |
Posted - 20 July 2009 : 06:43:05
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There are currently 6 organsations authorised to deal with DRO applications
CAB
CCCS
Bainst & Ernst
Institute of Money Advisors
National Debtline
Payplan
All seem to be very busy so be prepared to wait to go through an application
Angela Rosler
Debt Counsellor
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confused on the best way to approach my problem
