Advice please

[Dianne23]

Hi, I am needing some advice, as I'm worried sick, The house has long gone, I owe over £30,000 in unsecured loans and credit card debts, at the moment I am living on credit cards, whilst my little income and redundancy money is paying the minimum payments, I was meeting the minimum payments ok, until May, then I was made redundant, I took my £10k redundancy and decided to set up my own business, make some serious money, and clear this debt off, and make a better future for us. Now in November, I have £1k of the £10K left, and the business is not making the money I thought it was. with debts and living costs of £2k per month, Income is now next to nothing, What should be my next step, wait until its all gone, Get a job, (which obviously won't be enough to get me out of trouble), or get an IVA, or bankrupcy straight away, or is there anything else.
I have no assets, no house and no other income, and i'm living with my mum at the moment and my little boy, to try and eak out what little money i have.
Also will I get into trouble for wasting my redundancy money, or using my credit cards to pay the bills. I'm so worried.
any help or advice would be welcome
thanks
Dianne

[bagpuss]

dont worry..i cant help with what to do as i am not qualidied to do so...but i think speaking with a Ip will help you lots...there are a few on here and i am sure 1 will pop on in a bit to help guide you.

There is always a solution with debt...its just finding the right one for you.

I wouldnt say you wasted the 10K...it sounds to me like you tried to do a positive thing with it but it didnt quite work to plan...blowing it on a luxury holiday knowing you had debts that needed paying would have been wasting it...and even thats forgivable...no one here will judge you. xx

Angie xx


My IVA Story......http://bagpuss.blogs.iva.co.uk/2007/09/ ... iva-story/

[Skippy]

Don't beat yourself up Diane. No-one can criticise you for trying to make a business work.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[Skippy]

Ooop, I posted before I finished!

I would recommend that you contact a couple of IPs - have a look at IVA.com, or try ones who post on this site. They will be able to tell you the options you have.

Good luck, you will get through this x

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[Sensible77]

Hi, Dianne23. Don't be too hard on yourself. You did what you thought was best. I'm sure you won't be castigated for spending your redundancy money in the way you did and using your credit cards to pay day to day bills is probably what most of us on this site did - I certainly did! From what you have posted, an IVA sounds like the best solution, but as Skippy13 says, take a look at IVA.com for people's opinions.

[aguise]

Hi Dianne23
I agree with the others I think you were trying to solve things. Dont worry, just look for the best solution for you.

All the best Ang

Please visit my blog at http://aguise.blogs.iva.co.uk/

[scaredkez]

dianne you have only done what others have done to try and keep the wolves from the door, i wouldn't beat your self up over it, you realise you need help and have taken your head out of the sand, like the others have said seek some professional advice on your way forward, good luck.
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[MelanieGiles]

Hi Dianne

You will definately not get into trouble risking your redundancy money on a business which has not take off. Without enterprisers such as yourself, economies in countries such as the UK would be pretty flat.

However, rather than focussing on your debts at the moment, you do need to decide what direction your life is going to go in particularly with regard to employment and your home. Sort these out first and then consider the options which are available to you with regard to debt repayment.

And don't forget that bankruptcy only costs £485, so you would be wise to set that sum aside from the monies you have left just in case this is the route you eventualy choose to take if a job does not come along in the near future.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Dianne23]

Just wanted to say thank you to everyone who has replied, i'm going to have a good think about what you have said, and then pluck up the courage to get it sorted. just one question though to Melanie, you say to get my home sorted first, i'm not sure i have an option, as i can't afford to buy. and if i rented anywhere, I would ony be able to do this using my credit card again. Are you saying that its not a good idea to be living with my mum, when i go through the bankrupcy options, and would i get into trouble for renting somewhere using a credit card
thanks for your help
Dianne

[Soulgrowth]

Hi Diane

I Just wanted to say good luck and keep in touch with how things are going for you ... most of us have been there so, as the others have all said, don't beat yourself up over it [:)]

The most important thing now is the future for you and your little boy ... stay around and we will all support you in making the right decisions to find a solution.

Debbie

www.familyceremonies.co.uk

www.soulgrowth.co.uk

[MelanieGiles]

Dianne

If you cannot afford to rent a property, then staying with your Mum may be the only option for you until you get back on track. I certainly would not advise you to incur more credit just to fund living costs.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Dianne23]

thank you again for your help, having read through all the forum, and the articles, it seems that I won't be accepted for an IVA, due to nearly all of my debt being with one bank (Lloyds), and also because my income is not regular and enough to pay a minimum regular payment. so i think the best option is to go for BR and make a fresh start. can someone advise me, how long things take, once I get it started, as I don't want bailiffs knocking at my mums door or harrassing her. I want to get through it as quick as possible.
thanks for everyones help and advice
Dianne

[scaredkez]

hi dianne if this is the route you really want to take, you can start by filling the forms in online at the insolvency site, ring up your court to see what the time scale is, to see if you need to book an appointment or turn up on the day, book it if you need to book then you know the timescale you are working to, mine was the next day some are months in advance, once you have filled all the forms in on line you need to print 3 copies off to take to the court don't sign them as you have to do that there, any advice you need in filling the forms we will be here to assist.

in regards to bailiffs they can only turn up if a court order has been granted, lots of your creditors will threaten to send people round these are mostly empty threats however, if someone does come to the house you do not have to let them in, just inform them you will not deal with them on the door step all correspondence will be done in writhing and to please leave your premises.

anyone who is in debt that is struggling has this fear of people turning up at the door, it doesn't always happen, you will need £485 cash when you petition for your BR, good luck anything else please ask.

also i would like to add, if you have no assets then this is probably the best route to take, and believe me its not as bad as you think, its not an easy way out, but it is an end to your struggle.
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[MelanieGiles]

I would still strongly urge you to take direct advice from an insolvency practitioner with regard to your options. Debt forums and other internet sites are a wealth of valuable information, but they will not be tailored directly to your own set of circumstances. Advice is generally provided free of charge, so you have nothing to lose and will know that you have chosen the right option at the end of the day.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Dianne23]

Well, yesterday I toke advice from the official helpline, and they have told me that BR is the best option, I've been to my 2 banks and taken all the money out, I've rang the court and I'm booked in for Thursday, so now i'm sitting here filling the forms in, with my heart still going like mad!
I've registered unemployed as of today, so now I just need to cancel my tax credit and child benifit payments to stop them going into my bank. Just hope i've covered everything, I am so scared!
If you have any more advice, then I'd be grateful for it,
Thanks for your support everyone,
Dianne
oh just one question, Do i have to tell my cretitors, i'm off to the court on Thursday, or should i just let them find out afterwards