what would be the best option for me?

[robin_]

Hi, I am 29 with approx £30,000 debt that I have been paying off £80 per month via CCCS but I just can't see the light at the end of the tunnel, I live with my partner who owns and pays for the house, bills, etc and all I really own is a car worth approx £4000.....I have dreams of setting up my own online business though and I want to find a way to clear my debts before I start anything like this, I don't work at the mo, just stay at home with my 2 year old....what would be the best option for me?

[MelanieGiles]

Hi Robin and welcome to the forum

With that level of debt compared to your disposable income, I feel that a DMP is a worthless exercise. It will take you 31 years to pay off your debts, even if the creditors agree not to charge any more interest.

I would suggest that you declare yourself bankrupt - don't forget this costs £485 in Court fees - and put the debts behind you. You will be discharged and debt free within one year most likely, giving you that fresh start you need to be with the little one. If you are not working you might get a discount on the Court fee as well.

At the time you entered into the DMP with CCCS did they also advise you of the merits of bankruptcy proceedings, and what was it that led you to enter into such an onerous repayment programme?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[rubysoda]

Thanks for your reply, I entered the DMP with CCS because I was too scared to make myself bankrupt, I am worried about what people (who may read it in the paper) may think, particularly my parents! But now, when it is apparent the debts will last forever, I need to take some action, but bankruptcy still seems so scary!

[MelanieGiles]

Not scary at all - some of our most popular forum members have been through the process in the last year - Skippy, Scaredkez, Zoe and Coco - and just recently Pippa and Brassiclinctus this week actually. None of them have reported anything scary, and if you read their posts I think you will be very suprised to see what has happened.

I am sure that your parents will be more than supportive when you tell them the whole story.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[rubysoda]

yes, the things I have read have given me more confidence, this forum has been very reassuring. Just one more question, how long would it be before I could follow my ambitions of setting up an online shop? Would a bankruptcy affect this, I hoped to do it by the time my daughter started school in a couple of years time? many thanks

[MelanieGiles]

You will be subject to bankruptcy proceedings for one year, and then most likely discharged at the end of this. There is nothing to stop you setting up a business during the bankruptcy, but you will need your Trustee's permission to do this - not usually withheld. After you are discharged, you are a free agent again and can set up whatever sort of business you like.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[rubysoda]

that makes me feel better, just one last thing before I go to bed to finally get a better nights sleep - am I best getting the forms and filling them out myself or should I seek help from the CAB or a solicitor - the thought of filling out complicated forms is very daunting! x

[scaredkez]

ruby you can do the forms on line at the insolvency site they are very straight forward and then get the CAB to check them after you have filled them in if it makes you feel better, but there is no need to pay anyone to help you fill them in. good luck
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[sonyse2t5]

CCC needs to have a review in its policy...it is becoming a bias advice service with 99.9% dmp recomendations

[BrassicLintus]

Hi Ruby, I declared myself bankrupt on Wednesday this week, and I know what you mean when you say bankrupty sounds scary! (I prefer the term "insolvent"!!!! sounds less harsh!) But everyone at the court was really nice and it was all done within 5 minutes. As far as people seeing it in the paper and judging you, well a) will they really see it? b) if anyone says anything nasty - they aint worth bothering with!, c) everyone's circumstances are different and there by the grace of god goes anyone! You've tried to sort out your finances so you have nothing to feel ashamed about. Regarding the BR forms online, they are quite straightforward, especially as you have no property or real expensive assests to list. If you are stuck on any questions or have any queries just post them on the forum and I'm sure someone on here will have the answer! My advice would be preparation is the key, gather all your facts and figures, devise a realistic expenditure list and fill in the form before you phone for an appointment at your local court(I hadnt completed mine when I phoned last Friday and I got an appointment for the following Wednesday so I rushed mine a bit and made a few mistakes!!!) Good luck and keep posting to let us know how you are getting on.

[rubysoda]

thanks everyone, had a better nights sleep last night, just about to look online for the forms....fingers crossed!