Honest & frank account.... I'm desperate

[simon.b]

Hi all

I'm laying everything on the line here and explaining my situation in full to see where to go...

I'm 25 and have got myself into £32,000 of debt. I am desperate to get out of it.

I really didn't realise how bad the situation had got until recently I went to apply for a consolidation loan over a 10 year period and it was rejected - I had always seen this as my way out but this was no longer an option. I have been single throughout my life up until this time last year and now I'm in a loving relationship and focussed on having a life and getting on the property ladder. So in recent months I have been seeking professional advice via the forum to help which has been fantastic.

I had initially thought an IVA was the best solution but was since advised bankruptcy may be better because I am living at home still and my job will not be affected. This sounded better for me as I can imagine that I would find it near on impossible and utterlly depressing to live with IVA repayments which don't allow any money for socialising. My relationship would undoubtedly sour as a result as this would put a huge burden on my 21 year old girlfriend who shoudn't have to deal with my mess.

[ray_a]

Hi Simon

The experts will be along soon and advise you!

Whichever route you go down you will have to cut back I am afraid!

Looking at your situation I guess your creditors would be looking for something in the region of £400.

I hope that doesn't affect the football, you could always go and watch lower league football which will be cheaper!

My team wycombe played 3 premiership teams last season beating Fulham, Charlton, drawing Chelasea at home and then losing the second leg with you guys 4-0!

Anyway take care

Ray

[Skippy]

Hi Simon, I cannot answer your questions, but I can identify with you.

I am 32 years old, and was 65k in debt as I had lived beyond my means and comfort spent for years. If there was something new, I had to have it whether it was clothes, CDs, iPods etc. Add cars into that as well and it all starts to add up! I took out consolidation loan after consolidation loan, but never cut up the offending credit cards so when I had no cash left after paying the loans I used the cards. I finally realised how bad the situation had become when I realised I couldn't meet the minimum payments last August. I tried an IVA, but couldn't afford the repayments, hence my bankruptcy.

I can't say how the OR will look at your spending - I still worry what they will think of mine! However, if we get a BRO / BRU it means that we will be subject the same bankruptcy restrictions for however long the BRU lasts. Fingers crossed that we don't get one!

Good luck Simon, and don't worry about yesterday, just look to the future 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/

[freelili]

Hi Simon

It really does not matter how we all got here, we lived beyond our means, end of. There is no sense in beating each other around the head for it, or ourselves, we would all go back and change it if we could. The way I see it, based on opinion only you want to get on with your life and put this behind you. However, trying to paper over the cracks will only lead to more frustration in the long run, you want a swift end, I do too, but we have to face it to really feel better about ourselves. If you go into an IVA for five years, life will not be a bed of roses, you know that but you will have to learn to live within a budget and that is what you need. Dont get me wrong, I am not judging you, I hate budgets too and find it really hard to stick to. If you do this, you can then at the end of it all look forward to your grandma's inheritance and get started on the property ladder. (even while in your IVA this is possible). You will have paid back your creditors and achieved something. If you go BR you may find that you are subject to BRO/BRU and will feel bad about yourself, as you will know you could have avoided this. Five years is a long time Simon but it will change your attitude, a quick fix may not. I really wish you the best of luck with whatever you decide. I really admire your honesty.

LILY

fly me up to where you are beyong the distant star, I will wish upon tonight, to see you smile, only for a while, to know youre there, a breath away is not too far, to where you are.

[ray_a]

Hi Simon

Basically you need to calculate your income.

Calculate your livable expenses ie rent, food, rates if any, costs getting to work, heat & light, telephone including mobile, motoring expenses, other important costs but not luxuries. Do allow for reasonable contingicies such as the unexpected amount for car repairs etc.



This will give you an amount hopefully that you can put to a supervisor who can assess whether you could suggest an IVA.

When assessing the payment plan try and make it reasonable as a means of making the payment.

[Skippy]

Hi Simon - I wasn't suggesting that you will get a BRO! The thing is, none of us actually know until we are discharged. I don't think anyone is guaranteed NOT to get one, but if you are in the situation due losing your job, illness etc it's more in your favour.

I was made BR on 29th March and my telephone meeting with the OR was on 10th April. Some people see them the same day, others have to wait longer - it depends how busy your OR's office is.

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/

[alan1951]

Hi Simon,

If you are living at home you should be able to pay your mum the same as what she could rent your room to someone else .. does your IP say that you can't claim that amount??

Depending on the part of the country and the going rates, I would have thought £200 to £400 if including council tax, fuel bills etc excluding food

Unless an expert would disagree with this

Alan

[Skippy]

I've had my meeting, but I was told that if she needs to speak to me again she will be in contact, so it's basically wait and see!

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]

As far as I know it can be imposed any time up until the end of the year of your BR, although you would normally know about 4-6 weeks before your discharge date.

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/

[alan1951]

And an IP said that was too much??

Your mum shouldn't be penalised for your debts. Where I live half of the councol tax plus 50 percent of the utility bills comes to more than £100. A room with all bills paid is £400 plus.

Alan

[Skippy]

Not allowing you to pay £400 per month is ridiculous! Where do they expect you live cheaper than that?!? I take it that if you moved out and paid double that it would be ok?!?

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/

[MelanieGiles]

Can I just make it clear here that these limits are set by creditors and not insolvency practitioners. And that is is creditors who make the final decisions as to whether they will accept an IVA and not insolvency practitioners. The insolvency firm who have been advising you Simon, are probably speaking from their own experience, as you would expect them to when giving advice.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[freelili]

Hi Simon

I have a thought about something else you could try before going down the IVA route as it really does sound like its not going to work for you.

With the gift from your grandma could you try to offer a settlement with your creditors yourself?? If you wrote to them detailling your income and expenditure they may accept the offers, the dividend would be higher without the IP fee and they would get their money sooner, it might be worth a try. Not saying it will work but it would bring the swift end youre looking for and avoid BR.

I do realise that its a stressful time for you, believe me, I am desperate to be free myself, I feel that my life is not my own and cannot look forward until the creditors are satisfied, at the end of the day we owe them the money.

LILY

fly me up to where you are beyong the distant star, I will wish upon tonight, to see you smile, only for a while, to know youre there, a breath away is not too far, to where you are.

[alan1951]

Hi Melanie,

So in your experience as an IP is £300 the maximum that would be allowed for anyone living with parent for the rent and share of utilities and council tax exclusing food and household expenses.

That is an unreasonable figure for where I live, a house share is a minumum of £400 a month and nearer £500 for most.

It would seem unreasonable by creditors to disallow £400 when if it meant leaving the family home and renting something it would mean the return to the creditors was decreased.

Or maybe I am looking at this the wrong way.

Alan

[MelanieGiles]

Hi Alan

Current creditor criteria - from a lot of lenders - is to allow only £150 per month for rent to parents.

And don't shoot me I am only the messenger!!!

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk