we are currently starting the process of an IVA but I still have a lingering feeling that bankruptcy could be an option. I have a good job but have just had my second child and don't want to go back to working in the city. On my husbands salary we could survive with no debts, only just. I am worried about finding a home if we can't keep ours, our equity is about £10k estimated by a local estate agent. Would bankruptcy go with that price or a forecable sale price? would they give us the chance to stay in our home with such a small amount of equity, if not would they give us time to find somewhere else and if so will most rental agents let you rent if you pay upfront and have a guarantor? Would the OR make me go back to work or is me wanting to stay at home and not continue to pay £1500 a month in fares and childcare just to go to work enough of a reason, should I resign before going bankrupt? I am not sure which option we are going to go for but the thought of staying at home and looking after my children myself is what I would love to do.
Hi
Bankruptcy should always be considered before an IVA or a DMP. On paper this will often be the quickest and most cost efficient way to deal with your debt.
If your house has no equity and you declare bankruptcy then your husband could buy the interest from the Official Receiver for £1 plus costs. If you have equity then a third party could offer to purchase it off the OR again for the market value plus costs. In both circumstances you would remain in your house as long as you continue with the mortgage.
To work or not is your choice and nobody elses and I quite admire you wanting to look after your children rather than working.
Do not let debt get in the way of that.
Have a chat with a couple of companies/experts and discuss your options
Regards
You wouldn't have to go back to work if you didn't want to - with young children if you can stay at home, then you should.
With a small equity then you may be able to keep your house, but you need professional advice on that. If you weren't able to keep the house,the OR would give you 12 months to find alternative accommodation.
Visit www.iva.com for a list of companies and reviews. Give one or two a ring and you will receive free and impartial advice as to all the options open to you.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I just find it hard to think about having to pay £1200 a month in childcare plus my fares for me to not be there for my kids and pay money to the IVA. I don't care about not having any credit ever again just a roof over our heads and food in our bellies and for them to be loved. It wasn't too bad when we were only paying half of this amount although having to find £600 a month for childcare was one of the reasons we have got ourselves into this mess, now with two it seems crazy. My husband has checked with his work and his job would not be affected by bankruptcy and I am pretty sure that our income and expenditure on his money would mean that we would have to pay anything into an IPO. I could always get myself a part time local job at a later stage once my baby is a bit older and then we would also qualify for help from the government with childcare costs!
I am frightened about what they will say to us as both us would want to go bankrupt and we both have lots of debt, worried about how they will question me over getting into the debt etc Our car is on finance too but we would need a car for my husbands work and for the children, what is the limit we would be able to spend on a car and keep it?
Can all IP's advice us on bankruptcy, can they do the paperwork for us or is this something we would need to do ourselves.
Thank you for your help
I know we have done wrong and shouldn't have got ourselves into this mess but lots of circumstances meant the we are where we are, I don't want my kids to suffer too, could this be the start of a new way of life!
Hi
If the car is in finance then it will be upto the finance company and the OR wether this would be allowed.
There are some reputable companies that will do the paperwork for you [for a fee] or you can do it yourselves.
I wouldn't worry what the OR has to say, you need to do what is best for you and your family
Regards
IP's will advise you about bankruptcy and initial advice is free. However, if you wanted anyone to help you then it would cost. You can fill the forms in online via this link:
There is a firm called Reviva who do assisted bankruptcy, you can find the details under Paul Johns under the expert link on the left hand side of the page. I have met him and he is a lovely man. You can always give him a ring for advice.
You will have to tell the OR exactly how you came to be in debt - they need to know this.
Normally you are allowed to have a car valued at about £2500. Not sure what happens with a car on finance.
Don't go blaming yourself - we have all been there and are now doing something about it.
It could be the start of a new life - I hope it is for you and your family.
We are here for you anytime you want help, a rant or just a good moan.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Thank you very much for all your help, i am finding this whole process so difficult and it is hard to know which path to take as it could mean a different way of life for all of us!
It depends on where you live. Some courts have a 'walk in' policy, others have a backlog and you may have to make an appointment. Probably best to contact your local court to see what they say.
Most judges will want to know that you have taken appropriate advice before going BR, which is why it is a good idea to seek some professional advice first.
The fees for BR are £510 each so it would be best to stop paying your unsecured creditors in order to save up these fees.
There are several people on here who can help you fill in the forms, which you can do a bit at a time and save online.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
When you say they will have to know exactly how you got into debt, what if you don't know exactly yourself, loss of jobs, deparation,having kids, buying food shopping and clothes for the children with credit cards to keep up with the payments, I wouldn't know exactly what each debt was spent on over the years, how much detail do they need to know because I honestly wouldn't know it?
It's usually things like what you have spent the money on - they need to know that you haven't spent it on things like gambling (which you obviously haven't).
Hopefully Skippy13, Swans_girl or PoppyFairy will be on at some point tonight as they have all been through BR and will know exactly what the OR will ask.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Thank you very much, you are all so helpful. If any of those guys are on tonight it would be great to get a bit more info from those that have been there.
I know that Skippy has gone out for a meal, but she will be back on later and should pick up on this. Not sure about the other two.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
When I went BR I didn't really know what I'd spent the money on, I had nothing to show for it. I was honest with the OR and answered what I could, and if I wasn't sure of something I said so, and the examiner didn't have a problem with that.
If you have a look at my blog I wrote about the meeting at the time, and hopefully it might help a bit.
If you've got any questions don't be afraid to ask as there's always someone who can help x
