I'm tired of fighting my illness and the debt

[david_r]

Hi,

I'm new on here and want thank all who contribute. It is has been a tonic to read the advice and experience of others on this board. Please allow me to tell my story. I'll keep it as brief as possible.

I owe £86,000 on credit cards and loans built up over the last 10 years. I can't do an IVA for health reasons. My home is jointly owned and there is £70K of equity in it.

10 years ago I fell ill and developed ME. It took me almost 3 years to recover and get back to work. I held the job for 4 years, but eventually my condition got the better of me (actually I was made redundant but I know it was because my productivity was so low). Out of work for 9 months and then I was forced (out of desperation) to take a job that paid less than I needed, so I borrowed money to make up the shortfall. I only lasted a year in that job and I had to leave because of my health. Desperate to turn my financial situation around I decided to go self employed because I just can't hold down a full time job. 18 months later and my self employment hasn't worked either.

I'm tired of fighting my illness and the debt.

I can only see bankruptcy as the way out, even though I will lose my house.

So, my question is do I make myself bankrupt or allow my creditors to do it?

Thanks for any advice.

David

[MelanieGiles]

Hi David and welcome to the forum

Sorry to hear about your poor health - ME is a nasty illness, I have a few clients who also suffer from it.

Why don't you look at proposing an IVA based upon a voluntary sale of your house. You may then be able to negotiate keeping a sum of money to enable to to put a rental deposit and fund your relocation expenses, and still affect a very favourable return to your creditors which would give them back a much larger repayment than would be available in bankruptcy.

I have done several similar proposals for clients in the past, and would not envisage you having any difficulty with this.

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

[david_r]

Hi Melanie,

Thanks for the reply.

Does the solution you suggest still involve a 5 year repayment plan?

My fear of going the IVA route is the pressure of keeping up any repayments for 5 years. I have come to the conclusion I cannot hold down a regular job. Although that sounds defeatest, I am a positive person and I have tried holding down regular job for 7 years. At least bankruptcy would eventually leave me debt free, allow me to work part time which I can cope with, and leave my wife with a little money from her share of the property sale (if I understand bankruptcy law correctly).

I'm not rejecting your suggestion outright. I do want the best solution. It really is the fear of not being able to commit to a 5 year plan.

David

[Adam Davies]

Hi David and welcome.
Melanie,s option will not run over a five year term but is a full and final lump sum offer to your creditors.
regards

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

[david_r]

Hi Andy,

Thanks for that information.

It is worth considering.

David

[tracy.h]

Hi David,
I can sympathise with your situation,as over the years because of a disabilty that i have i have had to keep cutting my hours at work,this had led to a considerable drop in income,so i have been left in debt as each time my hours decrease obviously money gets tighter so ive consoladated and used credit to live,it wasnt so bad at first as doing nurseing when i felt well i could do extra shifts on the bank,that would enhance my pay,and i don't think you ever really believe there will come a time when this won't be the case but sadly for now ive had to stop all extra shifts,so i really do know where you are coming from,it just seems so unfair that you may loose your home because of a situation that is out of your control,did you not have any kind of insurance on your loans or cards that allowed for this purpose.
I have been looking at a couple of the unsecured loans that i had and paid all insurance up until i started my iva journey and have now written to the,companys concerned and sent letters from my consultant,explaining how my disability has affected me over the years to see if there is any way of claiming of the insurance,propably not but its got to be worth a try.
I really do hope that you can find a solution to your problem and i hope you will find some peace and live as good a life that your illness allows.
Good luck keep posting let us know how you are doing
Take care
Tracy

[Sadsack]

Hi David

First and formost you need to take care of yourself and your wife.

You have sufficient equity in your property to make a full and final settlement to your creditors. May I suggest to you that you get in touch with Mel and go through all your options with her. Her advice on this forum is second to none and she is respected both by the creditors and ALL on this forum.

Take good care of yourself.

Sue

[david_r]

Hi Tracy,

Yes, like yourself, I believed I could eventually fix it by borrowing to live, but things have got too bad now. The crazy thing is, up until last month I could still write credit card cheques up to the value of £22,000!! When you are desperate and you are given increased credit and 0% cheques without asking, it is hard to decline.

Anyway, I drew a line in the sand last month.

Unfortunately my insurance won't cover my condition because I am deemed 'fit for work'. It is really hard to explain to the benefit agency that just because I look ok and can touch my toes and walk 100 yards that I am 100% fit. In other words, I can't go sick.

However, I am keeping a positive outlook. There are plenty of people worse off than me. At least I can do some work and therefore have the opportunity to pick myself up again. Tomorrow is another new day!

Thanks for sharing. And good luck to you too.

[david_r]

Hi Sue,

We are certainly looking after ourselves as best we can. It is a stressful time, especially dealing with the legalities (default notices and the like). However, we don't beat ourselves up over the situation we find ourselves in. Sure, in hindsight I've made some bad decisions, but nothing to be ashamed of.

I have taken note of what Melanie has suggested and I may take it further with her.

Thanks for your advice and concern.

I will keep in touch, maybe through a blog!

David

[MelanieGiles]

David

Do continue to keep posting. There are many posters who will be more than happy to give you ongoing support especially when the nasty letters and telephone calls roll in.

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

[Oliver]

Stick in there David, there are many people who post on this forum who have been through debt difficulties and come out at the other end smiling.

All the best.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[Sadsack]

David

It pleases me to see that you are not ashamed of the situation you find yourself in. I on the other hand, am ashamed. Unfortunately I have no family in this country so don't have the support network which is so important. Hence, this forum is my lifeline and support mechanism.

I hope you have got in touch with Mel and you now see a light at the end of the tunnel.

Keep posting and let us know!

Sue

[Oliver]

Don't beat yourself up Sue, the most important thing to remember is that you've faced up to your debt difficulites and you are doing something about. Paying your creditors back to the best of your ability is absolutely nothing to be ashamed of.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[iva experts]

Hi Sue,

I agree with Thomas Charles, don’t beat yourself up, the fact that you are posting on this forum proves that you have admitted that you have a debt problem and are willing to deal with it.

We are all human and therefore make mistakes.

Hope this information is of use

Regards. IVA Experts

[Sadsack]

Thanks for the kind words! Am having a real sh***y day today so the stick is on my back!!!!! and I am the one using it!

Hopefully tomorrow will be better and the sun will shine again.

Sue