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If you are struggling with your DMP get advice and help here
By Sebs
I have been on a debt managment plan from 2006. I have 6 creditors my last one was for £6500 I only had it for 2 months then i went to the debt management plan. The debt collectors have been on to me about 3 to 4 times about early reduced settlements which unfortunately I cannot do as i am on disability. If i was to go bankrupt will they do me for fraud as I only had my last creditor for 2 months before starting the plan? Someone told me if they do not ask for payments after 5 years i can not be done for fraud. Can you help me? Sebs
Hi Sebs and welcome :)

If you are still struggling with your debts after being on a DMP for 7 years then I certainly think it is time to consider your options. Bankruptcy is definitely an option for you.

You have absolutely nothing to worry about as far as being accused of fraud is concerned. Even though you only took out your final debt 2 months before you started your DMP this does not matter. In fact you could have gone bankrupt from day one and you would still not have been accused of fraud. That is a total myth and it would never happen.
Hi there Sebs,

Hayden is right you do not need to worry about being accused of fraud in this situation. I also feel that if you are still struggling so much with your debts after this time then another debt solution such as bankruptcy really should be considered.

If you do not have any disposable income left each month then you will not need to pay anything towards your debts and will be debt free and discharged after one year.

One thing to consider, are you a home owner with a large amount of equity in your property? you would be required to release this if you go bankrupt.. however if you have no equity or are not a homeowner then this does not apply and bankruptcy is still probably your best option.
Hello Sebs

I agree with the other posters that you have no need to worry about being accused of fraud from this creditor. in fact declaring yourself bankrupt having only just taken new credit is pretty common and it never causes a problem. It would certainly not be a problem for you after this length of time of being on a DMP.

Melissa makes a very good point about your home. If you are a home owner with equity then bankruptcy might be an issue for you. Are you a home owner or are you renting?
Hello Sebs

The advice that has already been given here is very good. There is absolutely no way you will be accused by this creditor of fraud if you decide to go bankrupt.

I do know that many people are very worried that they will be accused of fraud if they have borrowed money just before starting a debt management solution. However this is a myth which is generally spread by payday lender collection departments who are trying to scare you into paying them.

Lenders would never actually take this action as they know that they could never make it stick in court. The court would throw out the case because their decision to lend to you in the first place was their own. You cannot be blamed for their bad lending decisions.
Thank you all for your support. This makes me feel much better. I have been worrying for a long time about this fraud issue. In fact the reason why I started a DMP in the first place was that the advisor I was speaking to told me that fraud would be an issue if I considered bankruptcy at that time and so the DMP was really the only way for me to go.......

I have a council house so I am not worried about that as I know others who have gone bankrupt and there house has not been affected. I think this is the right thing for me then. I have been reading the guide to bankruptcy on this site but the forms look very complex so I might need help. Is it OK to ask more questions here?
Hi Sebs,
I am glad you feel reassured that you will not be done for fraud and you have come to a decision that bankruptcy is the right option for you.

Unfortunately sometimes you are given the incorrect information from debt solution companies as they are in the business to make money as well that is why it is always important to get as much impartial advice as possible before deciding where to turn

As far as asking for more help here, yes! of course you can. I am sure all the posters here will try and answer any questions you may have and remember you can always call James at BMD to discuss anything further.

Good luck :)
I am glad that we have been able to give you the facts Sebs and help you make your decision. You are quite correct that your Council House will not be affected by bankruptcy. in addition if your only income is benefits then after paying the bankruptcy fee it is likely that you will not have to make any further monthly payments.

As Melissa has said, please feel free to ask any questions you need to about the bankruptcy process here. We will all be happy to help :)
We are always hear to help Sebs. Please feel free to ask any questions you want to and we will do our best to answer them for you :)