- Wed Feb 21, 2007 12:33 am
Hi Pip,........DMPs offer no legal protection
unless you are on the Scottish Debt Arrangement Scheme. If you are in Scotland I would recommend you contact Money Advice Scotland to discuss your options including DAS
. With DAS, creditors legally CANNOT bankrupt you or take you to Court, hence cannot get a Charging Order.
DAS may be a little tighter than Payplan, ie you be left with a bit less money (but not a lot less), but that's a tiny price to pay for the legal protection it offers.
With Payplan, one day in 6 months, 9 months anytime, 1 of your creditors could just decide to pursue you even though you are on a DMP. You need to plan ahead, keep ahead of these b******s. This means you need to be aware of what the chances are of being bankrupted by assessing your finances! There may be better options for you than staying on Payplan. If you give me some more info about your debt and circumstances I will give you my view as to what you should do. It really depends on your assets, job, income,debt and it is very important how many creditors you have. Strangely, it is better to owe 6 creditors £10k than owe 1 creditor £60k. This is because if there are 6, 1 bankrupting you would only get them a sixth of your assets. Eg: if 1 bankrupts you and you have £30k house equity, they will only get a sixth of what is left after the costs of bankrupting you which would get them a sum of about £2k, hence if you owe them £10k bankrupting you is a bigger waste of time than giving you more credit