Advice needed

[Pink Angel]

HI everyone

I'm new to this site so be gentle with me, but I could do with some advice from you guys. I have large unsecured debts from about nine different creditors some of which are banks and credit card companies and at the moment I have a DMP organised with the CCCS people. However a couple of my creditors are giving me grief. One keeps adding interest and late payment fees which isn't helping and the other one (the credit card people sold the debt to debt collectors) keep writing and wanting to increase the minimum payment. Its so frustrating because another one of my creditors are owed considerably more than these people and they have just accepted it all. Any way, my questions are as follows: My DMP is going to take a stupid amount of years to pay off (I'll probably be dead before I do) but I'm nervous about IVA's or BR because I own a 50% share of my house through a housing assocation, another creditor has already got a charge on my house through court, plus this thing about your tax code changing, that worries me, my employers would find out and I'd die of embaressment. And what would happen if my creditors then decided to petition me with BR, could I fight it, would I want to fight it. I'm single so I only have me to look out for (apart from my cats).

God so many questions, but there's no one else to turn to.

[emma_t]

Hi Pink Angel

I couldn't even begin to answer you questions as I am just another person in debt (in an iva since Nov 07)
I just wanted to say that you have come to the right place for support and advice and hang in there as you will get some professional advice soon - it may be a bit late tonight, but keep watching as someone who can answer all your questions will be along as soon as they can.

I just can't sleep tonight [:(] so came accross your post and just wanted to welcome you to the forum

In an iva you would not have a change of tax code and would have a definate end in sight (60 months) rather than an seemingly endless DMP.

Good luck
Emma x

[MelanieGiles]

Hi Pink Angel

Could you tell us a little more about your DMP - ie how much are you paying per month and how much do you actually owe to creditors?

It is possible that an IVA may offer you an alternative solution, but I am suprised that this was not discussed with you by CCCS at the time they set up your DMP. This may have been because you have equity in your property, but with shared ownership schemes there are perhaps other ways to get around your inability to raise equity, such as perhaps extending the IVA to run over 6 years. Worth considering all of the other options which are available to you, and an insolvency practioner can help to advise in these areas.

[Pink Angel]

Hi

thanks for the welcome Emma. Melanie to answer those two questions quickly, I owe in the region of £44.5k and I am paying £115 per month through the DMP.

CCCS didn't really advise me on other options and like you say I think it was because I have equity in my shared ownership house, however at the time I did try to raise some and most of the morgage people said they wouldn't lend against a share ownership property.

Do you think I should maybe get in touch with an IP to review my situation.

[MelanieGiles]

At a meeting of key members of the insolvency profession and creditor representatives today in London which I attended, it was discussed that long running DMP schemes are really not the right way forward - and that with new IVA protocol to be introduced on 1 February 2008 that an IVA is likely to be viewed as the best debt resolution method.

In your case you will be paying your DMP payments for over 30 years. This cannot be a realistic solution for you, but on the other hand I doubt you will find an IP willing to propose an IVA on the basis of contributions of £115 per month against debts of £44k.

Is this all you can afford, and are all of your creditors included in the DMP?

[Pink Angel]

At the moment yes, however in 2009 my car which is on HP is due to finish so that will give another £115 to add to the pot giving me £230 towards my DMP or otherwise. All my creditors are included some are only small amounts of a couple hundred where as one (Lloyds TSB who have unhelpfully offered me a consolidation loan) is in the region of £19k. Surpriseingly they haven't questioned or chased once they just seem to have accepted the greatly reduced payments.

[MelanieGiles]

With a very low IP fee, £230 could work as an IVA but you would probably have to wait until your car payments have concluded. If you do not want to declare yourself bankrupt, you will need to stick with the DMP until you can increase your payments.

[Pink Angel]

I've never really thought of declaring myself bankrupt (even though in reality I know I am). My worry would be for my house because there's a huge possibility of me losing that isn't there?

I think I'm going to have to soldier on and wait till my car payments end.

I suppose the only consolation is that I'll die before these debts are paid off and I can't see them sending the bailiffs round to me grave !!!!! not that I'll be able to afford me funeral ha ha

[emma_t]

Hi again Pink Angel

Have a look at the posibility of bankruptcy, read some blogs on this forum as they give a real insight.

Before I found this forum I thought bankruptcy was the end of the world and you could never lead a normal life again[:I]
Now from reading blogs and posts on the subject I realise that it is not as scary as you may think and often is the best solution for some people.

I am not saying it is easy by any means, but worth looking into I would have thought.
I am sure there was a post on here a while back that said if you petition your own bankruptcy near the end of the financial year your tax code may not change - I am sure someone will correct me if I have got the wrong end of the stick here but sure I read it on here somewhere.
Good luck
Emma x

[Pink Angel]

Hello again Emma

Thanks for your comments. I'll have a route around see what I can find out.

x