What do I do?

[MelanieGiles]

To Lauren f

The reason they tell you an IVA is not bankruptcy is because an IVA is not bankruptcy - in fact it is something completely different.

To worriedsick

I would compare the advice you have been given with a couple of other insolvency practitioners just to compare the advice given and to enable you to know the options you have available so that you can make the right choices.

[worriedsick]

Thanks Melanie. I really appreciate your help. You truly are a saint! It's just a bit of desperation that's adding fuel to my fire. A sense of urgency.

[angela18]

oh worried sick I hope you fnd a solution and piece of mind soon...

[lily]

Hi worried

I realise its all a bit much for you at the moment, I really do understand what its like to feel so alone and out of control, in can be a very dark place to be. Just remember you are loved and you are precious to those around you and they would never know how much you love them if you let these nasty dark thoughts get the better of you.

I really think it can do no harm to try another couple of companies just to get a better feel for whats ahead, in fact we always advise people not to go with the first company they speak to. I wouldnt consider Bankruptcy at this point, it sounds like you do have a way forward (I know its all still buzzing around right now). It will get better and you will get your head around it. You will be in a much better place soon, I am sure. You sound like youre justso mentally knackered and need to get some sort of idea to provide enough relief to progress to the next stage.

Still always here.

[worriedsick]

It has been too much for me. My partner isn't working so I was trying to help him out. I lost my job just after Xmas, but thankfully managed to find another one with 3 weeks. I agree Bankruptcy would not be a good solution and to be honest I don't need the mental scares that might (or in reality may not be) expected from bankruptcy.

I do get down a lot. It's just stress related. I find hard to cope with not only the guilt of debt but the fact that it's nothing but my stupid self that put me in this spot. A portion of it was left over from my late partner. He'd rather buy a bottle of vodka than pay the electricity bill. I tried my best to help and ended up paying the whole mortgage, bills and his debts. He died I inherited the debt and lost out on the insurance as well. But that's life.

Debt management would allow me to get on top of things. Concentrate on my new job and make plans to paying this off.

[worriedsick]

This is turning into a bit of an unofficial blog... I received my pack for the Debt Management Plan. Looked through it and felt like throwing it into the bin... not because of denying the facts... But it will require the following an upfront fee of about £300 plus each payment will have a 17% management fee included in the payment.

I might be distressed and depressed but I am not stupid! I think that this is a very high price to pay. I contacted the CCCS and then filled in an application online. They dont charge which is a something that is of relief to anyone in debt.

In my opinion it's kinda cruel to put someone into longer time periods of debt just to make some more money out of you?

Can I ask for my documentation back? I need it to complete the Debt Management Program with CCCS.

[MelanieGiles]

I would give serious consideration to whether a "free" provider is acting in your best interests. A "free" or "charity" company is funded by creditors, they will tell you what you are and are not allowed to spend, and operate under very frugal budgets. There will be a more flexible allowance for you if you engage the services of a fee-paying company, but of course you have to balance the length of time you anticipate it will take you to repay your debts. The up front fee of £300 you were quoted was presumably based upon your disposable income which at the moment is not being paid over to creditors.

[worriedsick]

Another dilemma. To stick to a budget and pay the debt off more quickly or to have more flexibility but pay off the debt more slowly. If it was a fixed fee and not a percentage of the total amount paid into a debt management program then that might be more acceptable. All I know is I need a resolution and soon!

[Adam Davies]

Hi
Why not go down the CCCS route and see what figure they come up with.If they want you to pay more than £300 per month would you be able to do this ?
A DMP will give you the breathing space that you seem to need but the service and affordability of the DMP is far more important than the costs.Make sure that you are happy with both before committing
Regards

[lily]

This is not the time to let feelings of guilt and shame to get the better of you either. We all make mistakes, get ourselves into tight spots, not realise the full implication of what we owe etc. However youre trying to address it, its not a crime. Forgive yourself as we all have had to. There is always an answer to any problem, you just need to find the right one for you.

One problem about paying a debt off more slowly is that its a bit open ended, you do not get the legal protection that you would in an IVA. Creditors may still call to try to get you to pay more, they dont have to agree to freeze interest either. With that said its a good temporary move to give you some relief and breathing space.

I would not be willing to pay £300 pounds up front free to set up a DMP, I see it as dead money. There are simply not definates for my liking. And I have been in one.

[Soulgrowth]

I think that plans of action are good things ... sometimes a DMP can be a step in the right direction to gaining control of things again, with a view to perhaps some better solution a bit further down the line?

Debbie

[Soulgrowth]

P.S

I would agree with Lily though that I would be loathe to pay anything upfront.

Debbie

[Reviva UK]

Hi

I drove to cardiff last week to meet Andrew from Brightoak. I too was a little dubious about a debt management plan with a fee paying service as you can go to the cccs / cab / etc etc .

BUT when Andrew had the opportunity to describe just a few of the scenarios that they work with it became blatently clear that there is infact an absolute place for his service.

The income & expenditure is so much more flexible that I sometimes wonder how people actually survive on the cccs breakdown.

Like all things in life you can choose a free service or pay to have some professional support. I have read about a man who "performed his own dentistry" last year because of NHS cutbacks. I have also seen people do their own conveyancing and selling of houses.

I have learned a long time ago that you really do get what you pay for so a professional caring approach with some real time spent understanding what you are trying to achive can really help the overall plan.

why don't you give Andrew a call and have a chat - it is worth the phone call

[worriedsick]

I need to give this a lot of further thought. I used CCCS online facility for working out how much I would have to pay and it's about £370 which wasn't that much different from the IVA. I can afford that ok. I am intending on changing jobs once a college lecturing post comes up, and with prior teaching/tutor experience I should land half way up the scale. So I will have much more disposable income.

As an IVA is no longer an option, DMP has to be considered. "Free" DMP with a budget I can manage and hopefully manage more in the future? Or a fee paying one.

The difference is down to timescales, as I can afford to pay both, the fee paying works out at over 2 years longer. So decisions decisions decisions.