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[cryingmonkey]

I feel like I'm in a never ending debt spiral at the moment and sometimes feel quite depressed as i see no way out of it. I've been trying to snowball my debts for the last few months but to be honest have got nowhere and have reached a point, once more, where I am going to have to use credit to get me through the rest of the month. I don't lead an excessive lifestyle but would like to be able to go out and socialise more than once every couple of months. first of all i would be interested to know whether an IVA would be a good option for me or if I should try Bankruptcy. as I have no assets to lose. By the way, my debts total about £20,700 (not including my student loan, which is another £22,000). Ouch. Hurts seeing it written down. I take home £1472 per month. after paying all debts (totals about £596 per month), rent, bills,groceries etc i am left with about £135 per month which doesn't seem to last very long and hence means i end up using credit again by the end of the month. I know 135 per month disposable is going to seem like loads to some people so I apologise if i seem to be a bit spoilt. I try to divide it into weeks (i.e. give myself 30 quid spending money a week) but i guess i'm not very good at it! Under an IVA do you think i'd be any better off each month? am i just being weak and should i just try to solve this on my own?

please help - i just don't know what to do.

[aguise]

Hi cryingmonkey
If you can post what is left after paying all your living expenses, do not include your debts, just what you need to live on for rent ,electric etc then advice can be given. I assume you rent, not own, as you said you have no assets. Bankrupcy or an iva could be a solution.
I dont think you are weak but the opposite, it shows strength to realise and deal with it.
I have found an iva the best thing that I have done and it is going well but it is by no means an easy option, like you I was struggling to make ends meet and going without continuously and working long hours just to make minimum payments. An iva means a strict budget to live on but it should be a manageable one, which ours was not before the iva. Everyones needs and situation is different. So check out all your options and understand the implications and you can then make an informed decision.
The ip,s that regulary post are away at present unntil next week, but there is a wealth of knowledge on the forum read the blogs and past posts and you will learn a great deal.

All the best Ang

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

[bagpuss]

Just wanted to say hi and dont worry...there is a solution out there for you....cant wait till you change your name to laughing monkey...it will happen. x

Angie xx


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

[lily]

Hi

Just to say its not about how much you have to spend, its about how much you can afford to pay back in an IVA, hard facts I am afraid but so true. If you only have 135 pounds left after paying all of your essentials (rent/council tax/car costs etc) then you do not have enough for an IVA.

I would suggest you write down everything you need to pay without paying any unsecured debts and then come back and see if its possible. Make sure you include incidentals such as dental, prescriptions, fuel, MOT, etc). An IVA is tough but should be manageable over the 5 year period.

If you decide BR is the best option, it would wipe out everything excluding the student loans.

With that said, I do understand your stress, I have been there and its such a horrible feeling not quite knowing which way to turn, the dispair eats you from inside out, not a nice feeling at all. Take heart though, the hardest step is admitting you have a problems and wanting to do something about it, you have taken that first important step by posting here.

The choice is yours, IVA or BR, the allowances in BR are much higher than IVA. Since you have no assets it might be the better option as long as your profession isnt affected. A word of caution, whatever route youre planning to take, do not use any further credit, its far better to stop paying your (unsecured) creditors now than to continue to accue debt, make sure you pay all of your priority debts though.

Good luck, hope you feel a litter better for spitting it all out.

lily

[cryingmonkey]

Hi there... thanks everyone for your words of support - its nice to know people understand!

i'll work out what exactly my living expenses are (including everything - just had to go and buy myself some cough medicine I hadn't budgeted for!!!)and post them here tomorrow.

I would feel really nervous if i stopped paying my creditors back now - even though i know it makes no sense to continue to pile more debt on to what i already owe. i've always been good at paying things on time and not getting nasty letters from people! hat would be the best thing to do? just stop paying or to write and tell them i can't afford to pay and see if they offer anything?

one question regarding bankruptcy - i've heard widely varying reports on how much it actually costs to go bankrupt ranging from a couple of hundred to over a thousand pounds. oes anyone know what factors determine the amount you'd have to pay??? presumably anybody going BR has no money!

thanks again everyone.

[lily]

I think the most important thing is to do what is right for you, make an informed choice.

If you continue to use credit now and you know you cant pay it back it will be frowned upon, espescially if you do go BR.

It cost £485 to file for BR (or there abouts). Someone else will give you the exact figures.

I would stop paying your creditors and use it to save for BR, assuming you take this road.

I know the feeling though, I went online and stopped all my DD's to my creditos and it felt bad but I knew I had to do something to stop increasing the amount I couldnt pay back.

Your creditors will shout and scream but there is not much else they can do, I havent made a full payment in 12 months, my house became like an explosion in a nasty letter factory, I became immune to it. The phone calls did get to me so I changed my number. Call centres are paid to stress a payment out of you and will say and threaten anything, most are empty threats. By the time it starts to get nasty you will be filing for BR or on the road to an IVA. Its just one of those things we have all gone through.

If you want to go down the IVA route, work out your disposable income, phone at least three companies and see what they say, IVA.com have a list of companies and feedback. There are some not so good ones out there.

You will need to change your bank if you have debts with your current bank, you will need a basic account, no frills and no credit products.

You are amongst friends here, anuthing youre worried about someone here will have been there, we do know how you feel.

Good luck,

lily

[iva.com]

Hi cryingmonkey,

Congratulations on taking the first step to addressing your debts. This is often the hardest thing to do so well done.

As Lily said (thanks Lily!) we at IVA.com maintain a list of IVA firms and their IPs. We also publish client reviews of the services that they provide. We recommend looking at several firms before deciding which to work with.

You can also work out your I & E and establish whether an IVA is likely be a suitable solution for you with our online analyser.

You mentioned that you have a Student Loan. Are you currently paying this? If so this will usually have to be excluded from the IVA with payments continuing alongside it.

Good luck with finding the right solution for you. Please let us know how you get on.

Kind regards,
Terry Balfour
IVA.com





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Use our IVA firm comparison tool to find best IVA firm for you:
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[Sadsack]

Hi cryingmonkey

Lily is correct - £485 (in cash) is what you will have to pay to petition for BR. IVA.com have the full list of IP's and companies offering IVA services, read the reviews, contact at least 3 who you feel are the best (there are some who regularly post on here)and then make an informed decision. I was in an IVA for a year, could not maintain the payments and petitioned for BR on 1 October. I wanted to pay my creditors as much as I possibly could, was very reluctant to persue the BR route, but on reflection, BR is what I should have done a year ago. Unfortunately, I am a homeowner and have resigned myself to the fact that I am ultimately going to lose my house, but BR lasts for 3 years - an IVA lasts for 5.

BR is NOT an easy option, for me it was the only way out. I will be making monthly IPA for 3 years, a lot less than in an IVA, but I will at least "live" and have one or two "luxuries" - perhaps a game of golf once a month - which I was unable to do whilst in the IVA.

Whatever you decide, good luck to you. Please keep posting, ask as many questions as you wish, we have all been down this road and will offer support for as long as you need it.

Sue

Ho Hum! Think I'll bang my drum!

Read My Blog
http://sadsack.blogs.iva.co.uk/