Debt please go away

[Iwanttocheckoutnow]

I’ve posted before, I won’t go into detail, it was removed due to my mental health and me writing things I shouldn’t of (just about checking out of life) im feeling a bit better, but obviously debt still consuming me.

after a chat with money wellness I am now ‘not eligible’ for a dro as debts are ‘too high’. (They calculated 35k- but some of their debts were duplicated. They argued that they weren’t, despite being exact amounts (one from original creditor and one from debt collectors). Find this unfair but whatever.

now being pushed to an IVA - I can’t afford this! Based on incoming/outgoings I am already on -£40 a month! So this just will not work and will push me further into debt.

i don’t know what else to do? Someone suggested CAP, but apprehensive as unsure what to expect. Feel I will be a burden to them. I have nothing to offer. Nothing.

i know I only have myself to blame for debt, (various reason- but ultimately it lands with me and I fully accept that.)

urgh now what? I’m so done in. I’m drained. I’m emotional, I’m in all honesty broken.

Get a second opinion from another debt advice charity.

Are they saying you'll need to pay £40 a month to repay the debt or is that £40 something else on top of debt repayment?

I don't understand why you can't get an iva?

You can always declare yourself bankrupt. Do you own property with any equity?
Ask a charity like stepchange or CAB if this could be an option for you. Obviously has longterm implication (6 years) on your credit file, but could be worth considering

she means she is short of £40 each month ...outgoings more than incomings. Please go to CAP or step change for non judgemental help. don't be pushed into an IVA you cannot afford. I've been bankrupt and survived...it's now a distant memory! Check out the debt free wannabe and bankruptcy forums on Money Saving Expert too.

Can you file for bankruptcy? One £90 fee and it’s all gone

Contact CAP, that will be able to help you and don’t judge.

I second @worriedstar have a look at the debt-free and bankruptcy forums on moneysavingexpert. They’re a bit more specialised than mumsnet.

Do you own property or assets? Or likely to come into any in the next 5 years? If not, bankruptcy might be better than an unrealistic management plan.

I’d recommend stepchange and citizens advice for a second opinion.

I worked for an Insolvency Practitioner if you don’t own your own home or have any other assets, you are probably wise to go bankrupt.

Bankruptcy is £680. A DRO is £90 but It sounds like the OP may be over the 30K limit to be eligible.

@MoonieDoo Yes my mistake. Sorry. I thought both DRO and Bankruptcy were the same

Remember, debt is not a crime, and it doesn't make you a bad person. Please don't let the debt chip away at your wellbeing.

Please speak to stepchange, its a free service, they are very friendly and understanding and will talk you through the options and reassure you.

I have been through step change, who were great. They advised a DRO, so put me in touch with money wellness. They were also great to begin with, then when questioned about the duplicate debts- which have now wrongly taken me over the limit for DRO, they turned dismissive and said they couldn’t help, and are forcing me to take a call ref an IVA. They have looked through all my figures, they know exactly what i have coming in and out, they know I am running at -£40 each month. So they know an IVA is not suitable as I have nothing to offer to pay. So frustrating and I’m now an even bigger failure

Are you sure an IVA isn’t an option OP? I know you’ve said that you’re -£40 a month with outgoings but are some of those outgoings not things which would be covered by the IVA so they would disappear and form essentially one payment?

Honestly shocked at all the people saying to declare bankruptcy, please OP make that an absolute last resort. If nothing else it has a massive impact on your day to day life, including things like your gas & electric, water and phone bills, your pension, it could also mean losing your job depending on what kind of work you do and it can affect future employment, it also doesn’t get rid of debt you still have to pay towards them unless you literally have £0 left. So don’t go into that lightly.

There is absolutely no way I could afford to go bankrupt anyway, so that isn’t even an option.
my incomings literally cover my day to day expenses, no debt whatsoever. So I would have to put myself into further debt to pay off existing debt if that makes sense? I want to fight for the dro, as they have duplicated my debts so it should be at 27ish (under the limit) but the duplication makes it 35.
but I just don’t have the fight left in me. Waiting for the bailiffs, and they will see I have nothing. The only thing of value is my car- and that is worth £450! I can’t even afford to carpet my house- the kids bedrooms are still bare.

Ahh I see, so are you currently not making any repayments whatsoever to any of your debts?

No, nothing. I have nothing to give

This is a common problem with DRO's - usually when you're dealing with someone inexperienced who doesn't understand how debt recovery works. They see two Defaults to LENDER and DEBT RECOVERY AGENCY and don't understand it's the same debt, passed on.

Take a deep breath and try again op. You'll get there. Call them back. Ask for a manager. Explain that your total debt is under £30k and point out their duplication.

If you have consumer debt- credit cards, loans etc - it's highly unlikely to end in bailiffs. Bailiffs are far more common for business debts and council debts like unpaid car park fines. Debt recovery agencies, even with a CCJ, rarely enforce them.

CAP are a fantastic charity would highly recommend getting in touch with them.

You need to contact CAP or step change immediately!!!!! You are not a burden at all and they will be able to help you, and you will feel better afterwards and will have hope for your future again. Do it today!!

Citizens Advice also have a DRO hub so you could start the process again with them. Debt helpline: 0800 240 4420. Best of luck getting it sorted
@Iwanttocheckoutnow

CAP are lovely

Money Saving Expert forums are excellent. While it's not professional advice there are a lot of knowledgeable people on there who have all been where you are now. Go back to step change again and request new advice based on the £35k debt. I know you said you can't afford bankruptcy it really is there as a last resort, especially if it's affecting your mental health. But it's very generous with allowances, so it's more than likely (only based on what you've said here though) you may have to pay the initial fee and no further repayments. But you need specialist advice, especially if you own your home

@ debtcamel on instagram has loads of advice on this. Have you made any affordability complaints? It does seem like you should keep pushing for a DRO, definitely don’t get pushed into an IVA you can’t afford!

You’re not a failure. You’re doing something about it and your debt does not define you despite how it may feel. You got this

Money Wellness look like a commercial debt management company so it's in their interest to push you down the IVA route.

@SomethingDifferentt, @Dippydinosaurus and @MoonieDoo give good advice.

You need to push back on the debt amount to get the list correct and I agree it sounds like a DRO is the correct solution. IVAs are only appropriate if you have assets like a property or expensive car to protect, or cannot go bankrupt due to your job.

Post your SOA on the DRO section of the Moneysavingexpert forum to get tailored advice. I don't know if you can just apply direct or have to go through an official intermediary.