advice needed

[s_cs]

Hi

i am currently in a dmp paying £100 per month. I am working part time and also currently in receipt of DLA and working tax. I am possibly going to have to give up work due to health reasons and was wondering if bankruptcy /IVA is the right option for me. I currently have a car on finance which isnt included in my DMP as i need a car.

my dla / working tax credits are up for renewal / review in july so am unsure if i would still be receiving this money.

i currently live at home with my parents and have no other assets apart from possibly the car but would like to keep due to my heath.

any advice would be welcomed

[liamjames]

Hi there!

How much unsecured debt do you have? Unless your debts are small, you'd almost certainly be looking at more than £100 per month in an IVA to achieve a reasonable dividend. I'd discuss Bankruptcy and Debt Relief Orders with a professional advisor, and they will give you their opinion on how it would affect the car you have on finance.

Some finance agreements contain clauses which let them terminate the agreement in Bankruptcy, so read it through carefully before you make any decision.

And best of luck. x

[s_cs]

hi

thanks for your reply. i currently have about 15000 debt including my car finance. i would definately need to check the agreement of my vehicle but wasnt sure if anyone had experience of keeping their vehicle for health reasons?

[kallis3]

Have you thought about motability for your transport needs? New car every three years and all you have to worry about is fuel.

[s_cs]

hi kallis

yes i have thought about it. unfortunately i do not qualify for motability as you need to have been awarded DLA for 3 years or more so not an option for me

[kallis3]

My hubby had incapacity benefit for years, but not DLA. We applied for it, and it was approved straight away. We have a motabilty car and it costs us nothing other than fuel.