HELP me please

[suk]

I am in debt around 1400 and am thinking of leaving the uk to run from the problems - I am from overseas. What are my options - I am earning only 800£ per month and I feel like my options have dissappeared. I know IVA is not an option, I rent a room, own nothing of value. HELP me please.

[faith]

did you mean to type 14000pounds.

[bri]

I will gladly swop with you

bri

[faith]

that was my thinking bri but i guess a zero was probably ommitted.

[suk]

1400 POUNDS - a lot to me - maybe not to everybody but i am despairing and wondered if someone had advice please

[Adam Davies]

Hi
You need to speak to your creditors and see if they will accept a reduced payment until you are in a better position.
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

[Oliver]

I think your best option would be to come to an agreement with your creditor to pay as much money as you can afford to each month. They may even agree to freezing the interest on this for you. Try not to despair, arrange to pay only what you can afford and concentrate on clearing this debt asap.

Best Regards
Oliver

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

[ivoriva]

To whom do you owe the £1400 too? IE credit/store cards, loan, utilities company, landlord etc? How much of £800 per month is disposable income, if any?

[iva experts]

Hi Suk,

I think ivoria makes a good point, do you know what your disposable income at the end of each month is ????

Disposable income is the amount you have left each month to pay back to your creditors, it is calculated as follows:

Your monthly income -
Your monthly general living expenses (i.e.: rent, bills etc)
=
Your monthly disposable income.

Once you know this you can then approach your creditors to come to an agreement of what you can afford.

All the best.


Hope this information is of use

Regards. IVA Experts

[suk]

OH DEAR I did mean 14000 pounds and thats a whole lot more than 1400 - sorry.
Do the same options apply or is iva or bankrupsy better options. I owe my bank 3000 and a loan of 11000. I have no money left as my repayments are 300 and that leaves me 500 for rent, food living etc. NOT the best

[MelanieGiles]

Hi suk

With debts this low, and no disposable income, I feel that your best option is to file for bankruptcy. This will cost you £490 in Court fees but will remove this debt pressure from you immediately. Your debts are still a little low for an IVA, and you only have two creditors. You could enter into a Debt Management Programme, but with little or no disposable income, these debts will continue to rise as ongoing interest is being charges, rather than reducing.

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

[suk]

Melanie i just wondered how I go about filing for bankruptcy? I am renting a room with an old lady and am scared it will effect her as I have my address there. I dont have much of value and am a bit concerned. I will save up the money and then contact a tribunal - or what?? And will there be a hearing?? Do i have to attend?? Will people know?? Sorry for all these questions. Thanks

[Oliver]

Hi Suk,
Yes £14000 is definately bankruptcy territory so as Mel says you should definately take this option into consideration.

You can apply either online or through your local county court where you will eventually need to sit down with a court offical who will rubberstamp your bankruptcy. This is a formal legal process although the circumstances are very relaxed and the court officials are very professional.

Details of your bankruptcy along with your name and address will be published in the local paper.

Bankruptcy is individual so there will be no detrimental effect on the person you rent from.

Here are some more details on bankruptcy.

BANKRUPTCY

What is Bankruptcy?
It is a common misunderstanding that Bankruptcy is only for companies and businesses. It is not. Bankruptcy is the way that an individual person can deal with personal debts, which they have no hope of repaying.

If you have debts which you just can not afford to repay, either through an IVA or an informal debt management programme, then Bankruptcy might be a sensible option for you.

Bankruptcy is normally seen as a last resort after all other options for repaying debt have been exhausted. If you are declared bankrupt, you will no longer have to repay your creditors yourself and the court will protect you from any further actions that your creditors threaten against you. However, where you can afford to make any payment towards your creditors, then you will be made to do so by the Court for up to 3 years.

Facts about Bankruptcy:
- The responsibility for paying your debts is taken away from you by the Court.
- You will normally be Bankrupt for 12 months.
- You may have to make monthly payments towards your debt for 3 years.
- After 3 years, any outstanding debt is written off.
- The record of your bankruptcy remains on your credit file for 6 years.
- You will have to give up your share of any equity in property you own.
- You will be allowed to keep reasonable household goods.
- You will be allowed to keep your car as you have a reasonable requirement for it and it is not unreasonably valuable.

What happens to my property and belongings?
You will normally be able to keep reasonable personal items and household goods such as furniture and electrical goods as long as their value is not greater than the cost of their reasonable replacement. However, you will be expected to sell valuable assets such as antiques and expensive vehicles.



Best Regards
Oliver

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

[iva_squirrel]

Hi Suk,

Bankruptcy could be a good option for you.
It will enable you to make a fresh start with no pressure from you creditors.
You should seek legal and/or financial advice as bankrupcy is a serious matter and your name will be published in the local paper.

Regards,
Michelle P.

[MelanieGiles]

I completely concur with the advice given by Ollie and Squirrel.

This will bring you a fresh start, and is very unlikely to affect your landlady.

Continue posting to let us know how you get on.

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