I have £40.000 of debts and i’m in a debt managment scheme. My creditors are still assessing wether to accept my minimum payments and most of them have frozen accounts. I only get £362.00 a month so i can only afford to pay £100 between all the creditors, which Money Plus are dealing with on my behalf. I am worried that my creditors will not accept these very small amounts each month and will make me bankrupt. Do you think they are likely to do this and can they?
If your creditors are aware of your circumstances – low income, rented accommodation, etc – it is unlikely that they will proceed with bankruptcy as they will have to cover the court costs and other admin costs. Having said that, bankruptcy would get rid of this debt once and for all and do away with the pain of having to deal with a debt management company for the rest of your life.
DMCs make a lot of money out of vulnerable people like you as they know the debt will never be paid. My heartfelt advice to you is to stop paying all parties immediately (or reduce the monthly payments to £1pm per creditor) and start saving for the £680 it will cost to do your own bankruptcy. You will feel a whole lot better for doing it.
Bankruptcy UK offers assistance at all levels and will also prepare and submit your bankruptcy application online. Court appearances for bankruptcy are no longer required. Feel free to call us for bankruptcy help on 01425 600129 for a chat about your circumstances.