Any advice greatly received

A question about : Any advice greatly received

Hi, I'm hoping someone can help back in 2009 I was made redundant from a job I thought was secure on a good wage of 50'000 a year, I lost out on my lump sum redundancy cause the company went into administration so I ended up with nothing, but luckily got another job a couple of months later earning less than half what I was on per annum. I have a ten year old daughter who doesn't live with me, but get her every weekend and a 2and a half year old and a lovely wife who has debt problems of her own. I couldn't afford the debt I had after being made redundant so went into a dmp, owe 18'000 pay Ј117per month, I own my own house which my mortgage is for 110000 but is only worth 105'000 so it's in negative equity. It's been one struggle after the other, car needing repairs, Xmas etc. tomorrow a lot of my bills come out Ј500 worth and I only have Ј150 in the bank, and i dont get paid for two weeks. it's such a struggle and such a burden on me that I won't pay my dmp back until 2025! I'm wondering do I have any other options? Bankruptcy or iva? My ten year old daughter lives 50 miles away and it costs Ј40 every weekend to get her, and it upsets me to think I can't get her some weekends due to cash flow. I have a dmp with step change.!

Best answers:

• Hi and welcome, I think you need to get back in touch with Step Change and explain how much you are struggling, it's not right that you need to pay out Ј500 but only have Ј150, what about food for the next two weeks? Thay will probably lower your DMP payments or perhaps suggest an alternative,
  Good luck
• i would also suggest to talk to StepChange
  I know 2025 is a long way off and is a long way off in terms of paying back debt but at the moment at least your paying something back and gradually and slowly reducing your debt! yes its not ideal but its better than not doing anything about it and burying your head in the sand!
  maybe reduce your plan payments until you get perhaps a job with more income? or cut out other things if possible that you don't particular need i.e any sky tV, mobile contracts etc!
  StepChange will be able to advise you if you explain your predicament
  let us know how you get on!
• To be honest it's most months I struggle, car problems mainly, because it's used so much it has cost us a lot, me and my wife share the cost but it's cost us 300 pounds in sept, then November another 300 pounds then Xmas, but it just seems to e one thing after the other I'm always ringing up and saying something has come up, I was just wondering what my other options are?
• As you said in your first post, an IVA and bankruptcy are both options to be discussed. StepChange should be able to discuss these options with you but there is no harm in getting a second opinion from Payplan and/or National Debtline, and also posting on the relevant boards here.
  Your Ј117 surplus and Ј18k debt may not lend themselves to an IVA but I have heard Payplan set them up around that level. Bankruptcy would probably require your surplus Ј117 (or thereabouts) to be paid for 3 years as an Income Payment arrangement but if your house remains in negative equity that should not be affected.
  There may be some other considerations (effect on job, car) but the specialist boards can help with those questions.