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EMPLOYEE
I’m
seeking assistance
Can I get a Debt Management Plan in my circumstances?
I have a credit card totallying 3000. I cannot afford the repayments . I am 60 years old and no longer work. I am receiving various benefits from the council to help me with rent, etc.
Official
Response
-
Hi there
I am sorry to hear of your situation.
It is unlikely, if this is your only debt, that a Debt Management Plan (DMP) would suit you as there needs to be 2 or more creditors for a DMP company to work with. Also, the relatively low amount of your loan means there may be better routes out of debt: if you have very little spare to pay over towards the debt, and it sounds like you do (as you do not work), then a Debt Relief Order (DRO) may be more suitable. A Debt Relief Order costs £90, but can be funded by instalments, and will wipe out your debt in one go, much in the same way as a bankruptcy. Citizens Advice Bureau (CAB) can help you with this.
A Debt Relief Order is a suitable if:- Your can't afford to pay off your debts
- Your total unsecured debts are no more than £15,000
- You have no more than £300 of net assets (sadly, this includes your house, if you own it, or a private pension fund)
- You have a car worth more than £1,000
- Your disposable income is less than £50 a month, after household expenses.
You have not had a Debt Relief Order previously (within the last 6 years).
You're not involved in any other formal insolvency/debt releif procedure.
As with any other form of debt solution, it's important to be aware of the restrictions of a Debt Relief Order. Please see below what this entails:
- Your Debt Relief Order will stay on public record for 15 months, and will stay on your credit record for 6 years.
- You will not be able to obtain credit of £500 or more, without informing your potential lender you are in a Debt Relief Order.
- You can't trade in a name other than the name you were granted a Debt Relief Order, without telling all those with who you do business with, the name under which you were granted a Debt Relief Order.
- You may not be involved with the promotion, management or formation of a limited company, and may not act as a company director, without the court's permission.
EMPLOYEE
-
Hi there
I am sorry to hear of your situation.
It is unlikely, if this is your only debt, that a Debt Management Plan (DMP) would suit you as there needs to be 2 or more creditors for a DMP company to work with. Also, the relatively low amount of your loan means there may be better routes out of debt: if you have very little spare to pay over towards the debt, and it sounds like you do (as you do not work), then a Debt Relief Order (DRO) may be more suitable. A Debt Relief Order costs £90, but can be funded by instalments, and will wipe out your debt in one go, much in the same way as a bankruptcy. Citizens Advice Bureau (CAB) can help you with this.
A Debt Relief Order is a suitable if:- Your can't afford to pay off your debts
- Your total unsecured debts are no more than £15,000
- You have no more than £300 of net assets (sadly, this includes your house, if you own it, or a private pension fund)
- You have a car worth more than £1,000
- Your disposable income is less than £50 a month, after household expenses.
You have not had a Debt Relief Order previously (within the last 6 years).
You're not involved in any other formal insolvency/debt releif procedure.
As with any other form of debt solution, it's important to be aware of the restrictions of a Debt Relief Order. Please see below what this entails:
- Your Debt Relief Order will stay on public record for 15 months, and will stay on your credit record for 6 years.
- You will not be able to obtain credit of £500 or more, without informing your potential lender you are in a Debt Relief Order.
- You can't trade in a name other than the name you were granted a Debt Relief Order, without telling all those with who you do business with, the name under which you were granted a Debt Relief Order.
- You may not be involved with the promotion, management or formation of a limited company, and may not act as a company director, without the court's permission.
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