Foggy wrote:It is a difficult one to call as everything depends upon so many things: the amouint of debt, the amount of arrears, the proposed payment vs, the contractual payment as well as who the creditors actually are ( some are more sympathetic that others). On the plus side, Stepchange, being in part funded by creditors, will handle the DMP without deducting fees, so the creditors will see a little more of the money. They are well respected by creditors and, I gather from various sources, are pretty successful in negotiating DMPs with creditors.
The debt is significant (10 creditors), but the arrears at present on each debt is only 2 or 3 months - so it's not gone on indefinitely.
The proposed payment pro-rata to my creditors is obviously significantly lower than my contractual payments. However, there is a very good chance (almost 100% certain) that after six months, my salary will increase by approximately £200 a month, which I propose to put entirely into the DMP - thus doubling my proposed payment.
I will do all I can to avoid a CCJ, because in all honesty, if that happens, I will lose my job, and then I'd have no option but bankruptcy, but with no assets (except a very old and knackered car worth about £800), the creditors would then get nothing from me.
I really am desperate. I thought taking out a DMP would be a good option, because until I am in post and have got to grips with where I am going to be working, I don't know if an IVA would be acceptable. Once I am in, I believe it would probably be OK.
My plan would then be, if, in 6 months time it's clear that a DMP will go on for too long, I could look into an IVA at that point, if my employer permits such a thing.