IVA? DMP? Bankrupt? help

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Hello. First time on this site (any site)
I'll just come straight to it i'm £32000 in debt with five creditors i live with my partner (not married) and have two children (7 & 3) my partner doesn't want to be involved with anything i have to do. My weekly expenditure is £260 leaving £70pw for my debts. what can anyone advise me to do? all my debt is unsecured and i rent my accomodation. can anyone advise me what to do?

Where is the Light?

[Beechy]

Hi and welcome to the forum

You have all the options available to you, and each needs to be looked at to suite your personal circumstances.

The only problem you may have in an IVA is that your partner wants nothing to do with your debt. Creditors normally insist on both parties income being included in the IVA.

In Debt management it will take between 9/10years to clear (based on all your creditors freezing interest and charges)

In Bankruptcy you would be expected to make payments for 36 months based on (around)70% of your disposable income,

I am sure other posters will send there thought soon


Dave Beech

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Thanks for your reply but my partner has her own debt and very little income. does this make a differance?

Where is the Light?

[pbeck]

You would have to take the household income as a whole and divide whatever is left after payment of the household bills in the proportion in which you were bringing money in to the household.

You say that she has her own debt but very little income. Depending on how much debt she has if you were to put forward an IVA the creditors might feel that your income was going towards subsidising her debt repayments, therefore your own creditors are losing out. This might make them unhappy about accepting your IVA proposal, however, we'd need to know more about how much both of you are earning, how much debt she has, and how much the monthly bills come to.

Philip Beck - www.freeivaadvice.co.uk

Licensed Insolvency Practitioner and IVA specialist

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She doesn't want to be involved she owes 10000 and earns £55pw plus child benifit so she pays her debt with that, I just pay for the children and household bills.

Where is the Light?

[MelanieGiles]

That sort of arrangement will not be deemed to be equitable in a future insolvency, as you will both be required to pay an share towards the household bills in the same proportion as your earnings.

If you are not property owners, and have no assets which would be at risk under bankruptcy proceedings, this could be the best (or only) sensible solution for you.

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

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Has anyone out there been in a situation like mine? I thought it would have been possible to do an iva on my own as i am not married?

Where is the Light?

[Beechy]

Hi

How has your wife managed to get £10,000 of credit with only an income of £55 per week or has there been a change in her circumstances

When making the application did she show your income?



Dave Beech

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were not married. she must have a good credit rating?

Where is the Light?

[Beechy]

Hi

Normally I would expect lenders have to establish affordability irrespective of your credit rating. I know this sounds incredible in this day and age with escalating credit.

This could get poster running to their keyboards to share their experiences of how much credit they were offered against there income. I would be interested to read these comments


So based on the above ,How has your partner managed to get £10,000 of credit with only an income of £55 per week or has there been a change in her circumstances

When making the application did she show your income?



Dave Beech

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She has had a visa for some years (when she worked full time) and recently had a loan for £5500 when she didn't work. my income has never been involved.

Where is the Light?

[Beechy]

The loan that was obtained while she was not working could cause a problem for you partner if she went bankrupt, as she would be seen to have obtained credit while insolvent. She may have a problem in DM as it is a recent debt, most companies do not like people to go in to DM with new loans (for the same reason as bankruptcy)

Dave Beech

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she has had the loan for 14 months and she doesn't want to be involved with anything i have to do. if there is no other way i will have to move out into a hostel.

Where is the Light?

[MelanieGiles]

You and your partner really do need to have a frank and open discussion about how you are going to deal with your finances into the future. She must realise that she has to contribute fairly to household expenditure, and that if this leaves her with enough money to service her debts so be it.

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

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i don't know where to turn for the best, as a couple we get nothing of the goverment my partner gets her £53 a week from her job and £120 child tax a month and thats it. could someone give me advice for the best option?

Where is the Light?