Your views and questions.

Moderators: TalbotWoods, JaneClack

By johnyy5
#461833 Hi. In 2006 I was in £85000 in debt with cards and loans. With a leading free debt management company, I am almost half way (£42000) paid so far. My monthly payment is almost £500. Just curious, would some people have decided to go BR by now, or just keep on going untill the debt is paid off? All of my creditors have been fair with me for the last 8 years, very little calls or threatening letters, so I thought I must be fair with them. Being 47, I will be 55 until my debt is 0, then I can start saving £500 a month from my job until I am 65-68. Does this make sense? Would appreciate your thoughts and experiences. Thanks.
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By TalbotWoods
#461953 Hi and welcome.

This is always a difficult one to call, but there are people who have struggled to make sure DMP payments were made for a long time, then for various reasons they have had to go bankrupt, and immediately posted on here, asking why the hell they didn't they do it sooner.

Just looking at what you have said, if you were to enter into bankruptcy now, then you would have to pay a Income Payment Agreement for 3 years (which almost definitely would be lower that you pay monthly and with the right I&E could be very pleasantly lower) then .......Oh that is it, done, dusted put to bed, no debt, all your own money.

The bankruptcy is on your credit files for 6 years, but other than the fact it will be difficult to get a mortgage, then there is no real hardship.

HOWEVER

Things to think about

If you own or are paying a mortgage bankruptcy may not be the right choice for you especially if there is equity.

You need to check to make sure you are not in a 'sensitive' occupation where going bankrupt is a barred to you working in that job.

You don't have valuable assets hidden away (the ORs are getting good at sniffing them out).

And, well that is pretty much it!

Something I would be asking myself, if I were in your shoes, is do I want to struggle for another 7 PLUS years ( you will be surprised how many DCA add bits at the end) or do I want it over in the next 3 years.

Being slightly biased I know what I would suggest, BUT please have a chat with your DMP advisor, coem on here ask as many 'daft' questions as you need, and not be scared of making big discussions.

As I said I know a lot of folk on here that had to face that choice, and when they did, well ........ See if you can find the posts by chandjay who is a good example.

Also just wondering if anyone discussed IVAs with you back in 2006?

Tim
By johnyy5
#461963 Thank you Tim. Very helpful advise, that has made me feel better. I will think about things this year. Thanks again, John.
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By TalbotWoods
#461973 You more than welcome

Tim