decided to go bankrupt for my 30000 debts

[r2t]

I first saw Citizens advice in December 2006 and decided to go bankrupt for my £30000 debts. They said to stop paying all creditors from then on, so as you'll imagine i'm thousands in arrears. I'm in court to file for Bankruptcy in 2 weeks but am beginning to think I should have done an IVA. Is it to late? I dont want to cancel my court date unless I know an IVA is right for me. Thanks

[kezza]

What is the best decision on what course to take depends on your situation, ie do you have any assets that will be taken in BR? I'm sure it is not too late to talk to a reputable debt advisor and explain your situation and see which is the best way to go for you.
The creditors usually look at what they will get back in either situation BR vs IVA

[scaredkez]

r2t when you go to court the judge will ask you if you have had professional advice before hand on the matter, if you haven;t he will not grant you your BR, what did the CAB say to you did they see if an iva was feasible then when you contacted them?
the best thing to do is work out your statement of affairs realistically and see what disposable income you have left at the end of each month as this is what you would put forward for an iva, be realistic in your outgoings as 5 yrs is a long haul, if you then post what you feel you could offer comfortably each month i am sure one of the technical experts will be along to advise if it is possible, i would also post who you owe and what as a lot of the creditors are looking for a minimum dividend of 40 p in the £ at present.
i hope this helps keep posting and let us know how you get on welcome to the forum by the way
kerri

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

[r2t]

Thanks for the help. I'm 21 and renting with my girlfriend. My only asset is my car which is on a personal loan, it's worth around £6000 but I owe around £9000 on it. I know that the OR will take it. The CAB were really helpful and mentioned an IVA but made BR look more inviting with the lower payments for only 3 years. I just dont know what effects the BR will have on my future, mortgages etc with me only being 21. The CAB worked out my Disposable income as £218. I owe approx:

Nationwide = £9000
Black Horse = £9000
HSBC = £5500
Capital One = £1000
Barclaycard = £2000
Tesco = £2500

All debts are unsecured. Thanks, r2t

[kezza]

The minimum dividend for an IVA is usually at least 25p /£ but some creditors require at least 40p, HSBC being one of them. I think Black Horse are also like that and also take into account when the debt was taken,

Speak to an idvisor and see what they say [:)]

[scaredkez]

black horse was one of my creditors and they had 26% of the vote they rejected because the amount was 21k and they seen this as too high, they also don't like it if the loan is under 12 months, but everyones circumstances are individual as others have had BH vote for them, r2t i am going BR, i do have assets so will lose my home and possibly my car i know it all seems daunting and very scary, my main advice is as long as you can show you have taken professional advice to the judge he will grant the BR, i don't know how likely an iva would be for you because included in those payments of 218 would be the ips fees so wouldn't give a very high return to your creditors as you have no equity to release in year 4 either, it all depends on how much they want to get back off you, the ips fees are in the region of £5K plus so when you work that out at 218 per month you would only be paying in just over £13k then deduct the ip fees from that, one of the technical experts will help you better than me and maybe see if there is an area you could realistically cut back and add to the 218, they probably won't be on til tomorrow so hang in there or may be give one of them a ring tomorrow and discuss options, have you tried the iva checker on here you fill it in and it gives you an idea if an iva might be right for you
good luck
kerri

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

[neverending]

Hi
Firstly its not too late.
On the info that you provide an IVA could be possible.
Your unsecured debts are 29k and you have an assett of 6k.If you sell the car and buy a cheaper one you could release say 4k.On debts of 29k you will need to return at least 8k to creditors plus IP fees of 8k,so 16k in total.You have 4k,so you will need to pay 12k over 60 months and you could do this on a disposible income of £218 a month.
HSBC could be a problem as they like a minimum dividend of 40% but there again if you bankrupt they will get no where near this.
Finally are you sure that you disposible income is only £218 ??
Your income less your rent,utilities,food car running costs etc etc leaves you with your disposible income.Is your girlfriend contributing to the living costs ??,this could increase your disposible income making it more attractive to your creditors.
It would pay you to speak to a company on this site and get a second opinion.
regards

[go_4_broke]

r2,

The OR probably won't take your car as you have no 'equity' in it so is not an asset. I would have thought it is more likely to revert to the finance company who will then claim the difference against whatever arrangement you make, eg 9k-6k being 3k or so, probably more. It depends on the terms of your finance agreement.

Is the 9k you say you owe on it the Black Horse 9k, or the Nationwide 9k or neither of these ?

Depending on that your debt reduces by the value of the car or increases by 9k less the value of the car, if you see what I mean.

The CAB will have advised you to go bankrupt as their seems little doubt that this would be your best option financially, on the figures you list it looks like you might scrape a 25p in the £IVA but as others say above you might be struggling to get this approved even though it will return far more to your creditors. Even so, you will still be paying back around twice and probably nearer 3 times as much as in bankruptcy.

I believe there are provisions for allowing you to enter a post bankruptcy IVA, in this case there appears to be no provision for creditors to modify your proposal so it is done pretty much on a take-it-or-leave-it basis. I wonder if anyone here has experience of this as it looks like it could be a possible option for you.

-Best



'5 years sticking my head into the Lion's mouth of debt !'

[neverending]

I presume from r2t,s post that the car is not on a HP agreement but on a personal loan,therfore the finance company will have no right to it and it will become an assett.
Can you confirm r2t ?

[go_4_broke]

Yes apologies r2t, well spotted never if it is purely a personal loan with no direct tie to the vehicle that would be correct I imagine.

'5 years sticking my head into the Lion's mouth of debt !'

[r2t]

Yes the car is the Black Horse 9k, It's a personal loan that I took out last Feb because they wouldn't finance me on HP. I was told by CAB to add up my living costs and split them in half as my Girlfriend pays half the Bills, Rent etc. They said to put all the car costs down as mine because even though she pays towards fuel etc, the car is in my name. My income is £1200 and my living costs are £982. I cant drop them anymore than that, I've kept everything to a minimum as it is. Also, does your name appear in your towns paper or County paper? Thanks again for your help. Just dont know what to do for the best.

[scaredkez]

in br your name appears in the local free paper, but don't worry its that small you would have to be specifically looking for it and come on who actually looks for these sort of things, your name will also be published in the london gazette don't know much about that one but if you add up how many people per day across the country that is going BR i can only presume they are a couple of line spaces and not great big boxes with your name splashed across, don;t worry about it at least you have had the guts to face up to your problems thousands out there haven;t and remember the old saying let he who is with out sin cast the first stone.
good luck kerri

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

[r2t]

yeah i s'pose your right, cheers kerri.

[go_4_broke]

Most likely at least the town where the court is. If in doubt, just buy all the papers and have a look. Look for an advert in 'Legal Notices' headed 'Insolvency Act 1986'. There's always a few in there !

-Best


'5 years sticking my head into the Lion's mouth of debt !'

[r2t]

The CAB put me down as using the car for work. Will the OR give me some money to buy another one or do I have to buy one myself? Just had a look in last nights paper and found the Legal Notices, needed a magnifying glass to read them! Maybe it wont be so bad afterall