Debt Questions

Hi all,

I've been on a DMP for around 2 years all going well. But i'm going to be made redundant next friday. I'm married with 3 children, live in a council property.

I'm only getting around 3-4k money so that isnt going to last long.

I'm paying £150 a month on a 20k debt, so should i either reduce my monthly fee? or should i just bite the bullet and go bankrupt?

The only think i have is a family car on finance a 06 plate car, but i do also have a car for myself. But both are in my name!

Your advice and thoughts are most appreciated...

Thanks,

Neil.

i would say it depends on if you need both cars or not, if you do i would get another job asap, if its a lower paid job pay less on the dmp. if you dont need both cars i rekon the best option is br, but what do i know, wait for the pro's to advise

Hi neilb 1980,

.....£150 a month on a debt of £20k ?
I'm not paying much more than that on a debt of £72k .... and I work and have a private pension.
When you get made redundant, get your payments on the DMP down to £1 per month per creditor.
There will be bugger all that your creditors will be able to do .... little assets(06 car) and living in a council house is a good situation to be in if you're wanting to stay on a DMP.

The car on finance - the OR/Trustee will not feel that you need two cars if you are not working and the HP company may have written into its agreement that the car will be repossessed if you enter bankruptcy. However any shortfall would go into the bankruptcy and it would leave more money left over. Check your agreement on this and think about whether two cars are necessary for you - if you live out in the sticks as I do with a bad bus service this may be the case!

Hi neilb, as you have three children and live in a rented home I would most certainly do as chandjay suggests and drastically reduce your payments. If you are with a DMP company it is quite easy to take over the DMP yourself, just cancell the plan with whoever runs it and write to your creditors, I would suggest recorded delivery, explaining that you have or are about to lose your job and you can only afford £1 per month, ask them for paying in slips and then you can simply pay into a Bank. Be firm with them and be sure to let them know you have NO ASSETS. Then you can take your time and consider if BR is the best route and look at the situation with your vehicles.

There is absolutely NOTHING the creditors will do in a situation like yours, apart from phone calls and letters, just ignore them. Your family comes first and if you maintain £1 PM you could almost forget about it.

Obviously this might not be a long term solution for you if you wish to seek a mortgage or credit in the future but it could be the best for now. Good luck. -- nomlas

Thanks for the advice people.

Yeah i'm with Payplan at the moment and i'm pretty clued up on certain things thanks to reading this site for the last 2 years. I could definatly run my own DMP as i dont let the creditors grind me down but i'm just in the frame of mind as to should i just clear it all by going BR while im in the situation of redundancy. I've got a few options as to what to do. I will sell my other older car and purchase another family car in my wifes or another non related family members name. That way it's not mine! And they can take the 06 plate car!!

I will most certainly be reducing my DMP to £1 per creditor from now on, so i'm sure the phone and letters will start but hey i've got over the harrasment once i'm sure i can do it again.

I'm getting a mixed reaction from friends and also on this site as to what my best option, people keep saying to me dont bother going BR on a 20k debt as it's not worth it, but is paying £1 a month worth it? BR will affect me for years to come but i'd still be in my DMP for years to come, which means i'm so confused and i'm worried as to what to do but i'm the only one who can make that decision i suppose...

It's easy being on the DMP it's hassle free and i've nearly almost forgotten about it but now redundancy is hitting me on Friday i'm all over the place as to what to do, we still have the car on finance and with my DMP to sort out the pressure is mounting on me i feel. I should just chill out and take it one step at a time but it's hard when your so confused...!!!?

i think the way your creditors react to your new payments might help you make your decision if they are a pain br it is,

Hi Neilb1980,
Yes, that is why I stay on a DMP and have not gone BR .... It's so easy, once you've got the plan up and runnng and your creditors stop giving you hassle.

I pay all my creditors on the day that I get my pension(private) and then forget about them until the next month.
And after reducing my monthly payments THREE times, I have got my payments down to a "reasonable" amount, so I hardly miss the payments.

BUT .... I also can see the logic of going BR when you're not working, as you probably wouldn't get an IPO so after 12 months you'd be discharged and have nothing to pay back ..... very tempting.

Yes Chandjay, i totally agree with you.

To be honest your posts in the first place when i first embarked on the thought of DMP when i was worried and confused made me realize that one i'm not the only one to be in this mess and two what can they do to me as i have no assets.

But i do honestly think the time has come to end all this and just admit defeat although i do have an interview tomorrow so if i get that then happy days the dmp will remain. I will update you all on the outcome!!

Cheers for the advice people's!!

Good luck with your interview. -- nomlas