Just a note, I have been on benefits for 10 years and never been in a trust deed or bankrupt before, thanks

Welcome to the forum Fiona19268.

A couple of questions about assets that will help us to advise you...

How much would you estimate that your car is worth (assuming that you own it)?

Do you own your home?

Hi, the car has a value of £950 and house is council owed, I qualify for housing benefit which they pay my rent, Thanks

Hi Fiona19268 and welcome to the forum.

First off well done for reaching out for some debt advice.

You are paying a huge sum of money out each month on debt repayments. I’ve worked it out at 45% of your income.

In terms of your options to deal with your debts as you are on benefits and have been for 10 years I would say that your best option will probably be a Minimal Asset Process Sequestration (Bankruptcy).

Under the MAP process you would pay an application fee of £90 and be debt free in 6 months. It would wipe off all of your debts and as your car is worth less than £1,000 you would not lose this.

Alternative options to this that you might think about is a Trust Deed but under the law we are not allowed to collect a monthly payment from you if your income is solely benefits. That therefore rules this out.

You could look at a Debt Arrangement Scheme. Under this you would make a voluntary contribution until the debt is paid back. It freezes interest and charges. Let’s say you could afford a payment per month of £100. Under the DAS it would take approx. 60 months to clear the debt.

I would encourage you to think about a MAP Sequestration. If you wanted to do this you could speak with Stepchange or your local citizens advice or local authority as you need to receive money advice from an approved organisation.

Please feel free to ask as many questions as you like.