Hi - its good to understand all the options open to you, but you really need to speak to your IP and take their advice too.
DMPs do have benefits as some careers are sensitive to insolvency and bankruptcy and they do not register on your credit report in the same way IVA, BR and CCJs do. They are also very good if the financial problems are temporary.
If your other half has debts too, it may be worth discussing solutions for both of you.
Hi,
My career would not be sensitive to bankruptcy, so that's one problem solved.
When you say temporary, I take it you mean the amount of the original debt, mine was approx 30k so I wouldn't class it as that.
I am going to do my calculations again and approach my IP with the information
Thx again for the help
I'll keep you all posted with what happens.
Forgot to mention, my partner has a loan with 19 months remaining.
I don't really see the point in trying to include this as they are the only one with any sort of credit rating which we require for some services.
I think BOL means that if your not being able to make full payments is temporary.
If you are the only one thinking of BR then your partners loan would not be included in that and they can carry on paying as normal.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
It wouldn't be worth including this if your partner can afford the repayments.
By temporary, I mean DMPs can be useful where your circumstances are due to improve in the near future. Some people drop from an IVA to a DMP if they think their financial situation will improve and allow them to propose a second IVA, thus avoiding BR.
This does extend the time it takes to settle your debts, but is an option for people who have a particular reason for not going BR.
Back to you, let us know how you get on. It will be useful for all of us who haven't transitioned from one debt solution to another. And it will be nice to know you are all OK!
A DMP is definately not practical, my financial situation is not due to improve in the near future.
Just one more question regarding bankruptcy. If you choose an IP to do it for you, do you personally pay the banruptcy fee and theirs ???
What if you can't afford the fees ??
It's not usually an IP who does it for you. There are firms who specialise in bankruptcy assist. You do have to pay fees to them and your court fees.
If you cannot afford it then you will have to hope that one of your creditors will make you bankrupt. Otherwise you will have to save the fees up.
I know it's mad as you have no money but there's nothing you can do about it.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I believe in BR you pay the costs and if you choose a professional to act on your behalf you are also responsible for paying their fees. Basically, the return for creditors isn't enough in BR for them to consider covering fees and costs for you.
It will take three months for your IVA to fail once you stop paying. You can save these payments for the £600 court fees and fill out the forms yourself. If you hire a bankruptcy assist firm they could charge a couple of thousand, making it virtually impossible to afford.
It could take longer than three months - depends on how much you can afford to save.
Some bankruptcy assist firms charge a lot less than that. I believe Vincent Bond do bankruptcy assist and their fees are nowhere near that.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Ok,
In that three month period I will need some of the monies to pay for my new expenditure so will not accrue £600. What will happen If I can't afford the £600 for say 5 months ??
I guess that my creditors will be chasing me again
Your creditors will be chasing you again once the IVA fails. If you've not got your own property then the creditors can't really do a lot other than pester you.
I personally wouldn't pay a company but it might be an idea to give one a ring for some initial free advice.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Thnx Jan - I didn't know there were credible BR assist firms. I guess the only ones I hear about are the ambulance chaser variety.
Jenstown - the creditors will start chasing but will really be nothing more than an annoyance. If you tell them you are saving for BR, you are also using their own trump card against them. You could ask them to bankrupt you, but they are unlikely to do that because of th cost involved. Besides, it will take them longer to mobilise themselve to do anything than it will for you to petition for your BR if you are looking at a 5 month timeline.
