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cpharo
New Member
United Kingdom
58 Posts |
 Posted - 19 August 2009 : 22:26:19
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Hi,
Most of my debts are 4 years old, and I have 4 new debts that are from last year, one is for a credit card one is a clothes catolgue, one an overdraft and the other a doorsetp loan, I know it was really stupid of me to get further credit when I was already in debt, but I used the credit for food shopping and Xmas presents last year for my daughter and my family, I also needed a new sofa and needed to buy my daughter a bed. I have stopped paying all of my creditors and am saving up to apply for bankruptcy. However I am really worried that when apply for BR, I will get into trouble with the OR for taking out more credit when I was already in so much debt. What if they accuse me of trying to commit frord. I thought I would be able to pay the credit by juggling things around, but it did not work like that. Any advise please? |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 20 August 2009 : 06:45:46
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Hi,
You are no worse off than the rest of us, we have all taken out credit when we knew we couldn't afford it and have juggled the payments.
The OR will not accuse you of fraud, you need have no worries on that score.
The glimmer gets brighter all the time
Jan
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 20 August 2009 : 06:50:42
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You need to do something to resolve your financial issues and the first step is admitting that you have problems. Your situation is similar to a lot of people on this board and the OR will not accuse your of fraud or any other criminal activity. OR's are non-judgemental and do not have the power to put you in prison.
Speak to the CCCS, CAB, National Debtline or an Insolvency Practitioner regarding your situation to work out if BR is the best option of resolving your financial problems. |
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cpharo
New Member
United Kingdom
58 Posts |
Posted - 20 August 2009 : 10:06:36
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I have spoken to the CCCS and they have advised me to apply for bankruptcy as I am in £27,500.00 worth of debt. Pay Plan have advised me to take out an IVA with them for £124.00 per month, they have drawn up a proposal for me and want me to sign it and send it back to them, but looking at it I think there budget will be hard to stick to for 5 years, in bankruptcy I think ou are allowed a slightly higher allownace for thigs. I have no assets so maybe bankruptcy will be better for me than an IVA
cpharo |
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 20 August 2009 : 10:55:33
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I looked into an IVA before deciding on BR and was told that I would need to have at least £200 DI in order to enter into an IVA so I am surprised that payplan would let you have an IPA for £124 per month.
I was in a similar situation; no assets in the current economic climate I don't think anyone can guarantee that they will have a job for the next five years so I decided BR was my best option as well. |
Edited by - gettingoutofdebt on 20 August 2009 10:55:54 |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 20 August 2009 : 18:36:03
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I'm surprised at Payplan at proposing an IVA for that amount, are you sure it wasn't a DMP?
I do know of at least one company who does quite low IVA's, but you would probably struggle on most of the allowances, as most of their clients seem to.
BR sounds like a good option for you.
The glimmer gets brighter all the time
Jan
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 20 August 2009 : 19:38:14
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| If it was a DMP with £27.5k debt and paying off £124 a month it would take 18.5 yrs to pay off and that is without any interest the creditors may add and any fees for PayPlan. |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 20 August 2009 : 20:48:48
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Payplan don't charge fees for a DMP. It is all funded by the creditors, and will make no difference to the length of the DMP.
However, that is a long time to be paying off a DMP - mine would have been about that long.
If you have no assets, then BR is a good option for you to look at.
The glimmer gets brighter all the time
Jan
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Hi,Most of my debts are 4 years old
