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desmond.p
Starting Member
11 Posts |
 Posted - 03 January 2010 : 17:42:35
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| i have made a mistake it is a debt management scheme that i am entered into sorry but thought it was the same as an iva |
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 03 January 2010 : 17:50:45
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Is this in response to this (http://www.bankruptcyhelp.org.uk/forum/topic.asp?whichpage=1&TOPIC_ID=9888#42905) post Desmond?
If so, the information in that post is still relevant. You would need to speak to the DMP company to tell them that you are unable to carry on with the payments and see if they could arrange for a payment break. If not then BR may be your only option.
Still speak to the CCCS, National Debtline or CAB regarding your situation and see what they say as they will be able to advise you further. |
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desmond.p
Starting Member
11 Posts |
Posted - 04 January 2010 : 21:11:00
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anyone know about debt relief order pls
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 05 January 2010 : 21:22:26
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Hi desmond
basically under 15K worth of debt with very low income (or no income) and no assets
Debt relief orders are designed to give those who have debts of £15,000 or less, assets of less than £300 and surplus income of less than £50 per month the opportunity to apply for an order that will lead to the debts being discharged after one year.
During that period, people who have a debt relief order will be protected from enforcement action by their creditors and will be subject to similar restrictions to bankruptcy. Those whose financial circumstances improve during the order will be expected to make arrangements to repay their creditors, and there will be civil and criminal penalties for those who abuse the system.
regards Richard |
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desmond.p
Starting Member
11 Posts |
Posted - 05 January 2010 : 22:17:39
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thanks richard,have the details ready for cab except for tax liability but cab told me to get full details from inland revenue asap,was s employed for some work and just scared to file tax return as would never have been able to pay it no matter how small it was,work in transport has been so bad and now even worse have no job at all so hoping i can get this sorted and get a fresh start and be assured i will never be in this situation again as it is soul destroying
thank you des p
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 06 January 2010 : 16:53:54
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keep plugging away it all comes together in the end .. honest
will the tax bill take you over the DRO limit ?
if so its BR, then you can make afull start without anything hanging over you
regards Richard |
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desmond.p
Starting Member
11 Posts |
Posted - 06 January 2010 : 21:21:12
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no tax bill will still be under 13,000 but am no being told that the tax bill may not be available to lodge on time.if i get a job and am not too confident what are the possibilities for me trying to clear this debt?
thanks des
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 07 January 2010 : 12:27:20
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sorry Desmond
I cant answer your question, as the answer will depend on, when you get a job, your level of income, savings and your spending habits
HMRC are willing to talk to an individual and negotiate a monthly settlement figure but it has to be realistic to you and them.
Richard |
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desmond.p
Starting Member
11 Posts |
Posted - 11 January 2010 : 14:04:22
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hi richard well it goes from bad to worse the lady from the cab has spent a week to send me paperwork and the details i gave her are not what she has put on the paperwork so will take another week and i have just been offered a fairly low income job which i will be taking as am a worker.is there anyone i can call to get an answer as to wether bankruptcy is an option even for a limited ammount or is the dro no good to me as have probably more than the £50 disposable income,i realise its my fault in the first place but where to i turn to for real help
thanks des
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 11 January 2010 : 14:17:33
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You do not have to have a certain amount of debt in order to declare BR. It is just that a DRO 'may' be a better option if you have less than £15k debt and fit the other criteria. With a DRO the fee is a lot less and you do not need to go to court.
If you want to declare BR then there is nothing stopping you. You will need to contact your local court to find out whether you need to make an appointment or just turn up - http://www.hmcourts-service.gov.uk/HMCSCourtFinder/
You can complete the BR forms online - http://www.insolvency.gov.uk/doitonline/doitonlinemenu.htm
And then it is just a case of turning up at the court with 3 copies of the forms (6.27 and 6.28) with the £510 BR fee.
Petitioning BR is a big step so make sure that it is the right option for your situation. You shouldn't rush into BR just because it is going to take longer to get a DRO set up. If you are no longer eligible for a DRO as your income is going to change then that is fine but don't rush into BR as once you are BR you cannot change your mind.
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Edited by - gettingoutofdebt on 11 January 2010 14:19:35 |
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desmond.p
Starting Member
11 Posts |
Posted - 11 January 2010 : 15:49:05
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what are the other options i am unable to pay the debt management company and the letters will just start piling up again,i can carry on with the tax situation but urgently need advice on the other £7000 the lady from the cab (shelter )just explained she can not even talk to me as she was setting up the dro and now i will be unable to do that because i am starting a job
thanks des
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 11 January 2010 : 17:04:36
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If you cannot afford your debts the options are:
- Paying back a smaller amount each month. You can contact the creditors directly to see if they will accept a smaller payment. Chances are that the creditors will only accept this for a while and then want the full monthly repayment.
- A full and final offer. If you have a lump sum you can make an offer to each creditor for a final offer of repayment. This is normally 35% or more of the actual amount owed. Some creditors will accept this, some won't.
- A Debt Management Plan. You already know about this.
- An Involuntary Agreement (IVA). You liaise with an Insolvency Practitioner (IP) and they negotiate a payment percentage amount with your creditors. You normally need to have a DI of £200 however I think some IPs will accept a DI of £100 per month. This repayment period is normally 5 years.
- A Debt Relief Order (DRO). You know about this.
- Bankruptcy
That's pretty much it. I would say if you have been in a DMP and it hasn't worked out then the best option would be a DRO (if you meet the criteria) or BR. |
Edited by - gettingoutofdebt on 11 January 2010 17:05:03 |
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made a mistake it is a debt management scheme
