• Welcome to the LegalBeagles Consumer and Legal Forum.
    Please Register to get the most out of the forum. Registration is free and only needs a username and email address.
    REGISTER
    Please do not post your full name, reference numbers or any identifiable details on the forum.

Bankruptcy

Collapse
Loading...
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • #16
    Re: Bankruptcy

    Originally posted by tankusmaximus View Post
    Hi Debt Camel

    So are you saying my only choice is to go bankrupt as I dont have the kind of money I would need to pay off the debt and start a fresh in 6 years time as unless I settle with my debtors no matter what I do my credit will still be bad for years to come

    Thanks
    What I am saying is rather more complicated and nuanced than that. I am saying

    1) that you have to avoid CCJs or they will wreck your credit record for 6 years from the CCJ date. Your creditors for the debts in the DMP have got a 4 year period during which they can try to pursue for these debts. I get the impression that there are quite a few of them? If they threaten court action you can go the CCA route and this has a reasonable chance of working as the debts are all old. But if one fails you could get a CCA.

    Normally starting along this route would be a good idea, see how it goes. But the stat demand debt you have reached a payment agreement for will have to continue to be paid until it is gone and that is a large debt. That tips the decision a bit towards bankruptcy now to get it all out of the way?

    2) And if you want a mortgage you need a good credit record AND to have paid off your debts. Being in a DMP with a good credit record will probably not be good enough to get a mortgage.

    Your options for getting a mortgage come down to

    a) going bankrupt now, starting to rebuild your credit record and save a deposit then try to get a mortgage after 6 years. If your partner has a very good deposit and you have a good income for what you want to borrow, this should work, with the help of a bad credit broker.

    b) repaying your debts with Full & Final settlements as soon as possible. Your creditors may take low offers but this will demand a series of lump sums. If it's possible, it will put you in a better place than bankruptcy. But without seeing your finances in details I can't say if its possible.

    Comment

    View our Terms and Conditions

    LegalBeagles Group uses cookies to enhance your browsing experience and to create a secure and effective website. By using this website, you are consenting to such use.To find out more and learn how to manage cookies please read our Cookie and Privacy Policy.

    If you would like to opt in, or out, of receiving news and marketing from LegalBeagles Group Ltd you can amend your settings at any time here.


    If you would like to cancel your registration please Contact Us. We will delete your user details on request, however, any previously posted user content will remain on the site with your username removed and 'Guest' inserted.
    Working...
    X