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Please advice - Payment plan / settlement offer


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Hi

 

Im £17k in debt - mostly to banks - some payday loans - some others.

 

I wanted to set up a payment plan through stepchange. ( Because if i go bankrupt I will not be eiligbile for any promotions in my industry )

 

My 2 main concerns with this are as follows:

 

1 - The people I owe money too will continue to charge interested etc. if this is the case it will probably end up being more than I am paying back.

 

2 - I was hoping to earn more soon, and perhaps make a settlement offer of a lower lump sum to the people I owe money too - will this still be an option with a stepchange payment plan in place?

 

Wish I just had a job where I could go bankrupt TBH

 

all advice appreciated

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Hello there.

 

1. If you go for an IVA interest and charges will be frozen as it's a formal insolvecy route. There may be issues with work with this one, so ensure you check. With a DMP you're going with an informal option. There is no obligation for a creditor to freeze interest and charges although they have a good track record of doing so.

2. With a DMP that could be an option. With an IVA you usually have to give half of any extra earnings to your insolvency practitioner.

 

Hope this helps.

 

Seq.

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