I've moved back to Australia after 8 years in the UK (not to escape debt in case that is your initial thought)
I have debts of 48k
American Express 9300 (mine)
Cahoot 19000 (joint)
Natwest Personal Loan 12700 (Joint)
Natwest Mastercard 6600 (mine)
None of it secured
Plus a house in the UK being rented out as I can't sell it (not a single viewing in 12 months and that is with dropping the price to the Mortgage value, therefore no equity, probably negative)
I've kept in touch with all creditors though not given them contact details here given the stance of some of them and timezone difference (they all have a mail address that is forwarded plus a fax number). Last thing I want is 3am phone calls.
I discussed options with CCCS and personally, Bankruptcy is not an option for various reasons not least they will get nothing and I think it is possible to pay back some of the money owed.
We've gone a DMP for starters but it is for 130/mth (roughly 30 years to pay off debts, CCCS had to think about that one). It at least buys some time.
I'm a contractor so income varies. I used my own estimates of what the year would be, less allowance for holidays, sick leave, public holidays and in between contracts, in effect, based income on a 40 week year.
Prior to the DMP I actually wrote to the creditors with offers of reduced payments. Natwest kindly responded saying though it was unacceptable they will freeze interest for 6 months and review.
Amex passed it on (Newmans) though could not tell if sold or just someone to handle it for them. I did note that they changed again after I sent a fax to Newmans advising of CCCS and DMP.
Cahoot I spoke to directly and advised of CCCS ref number and not heard from since, they have been fine though.
Anyway, all history so to speak.
Going forward
With the drop in interest rates (therefore my UK mortgage is less), I could look at increasing monthly payments to around 230-280/mth which by my reckoning puts me in IVA territory with a dividend of circa 30-35%. Given the creditors above, would this be feasible?
AND another option I might have ....
In discussions with my family, they might be able to offer some conditional assistance by way of full and final settlement on one or more loans probably around the 30% mark give or take. Is this feasible and how would I go about it? Is this also an IVA that starts and stops immediately or do I simply write to creditors and make an offer.
Given what I've read about Amex, would be great to get them out the way and settle.
What is your view on creditors listed and how they would view such an offer? It's a one off chance to clear it all and realistically pay back what we can afford by way of a gift.
BTW, have spent last few days literally reading every post and all respect to the experts. You all act with respect for people in trouble, respect for each other and give honest frank advice where feasible. You offer a service without selling so thanks.
morning wombat and welcome.
have you actually found an ip yet or are the cccs sorting something for you ?
if youre planning to stay in australia im not clued up about if you use an ip from here or over where you are. i know my ip melanie has posted that she has overseas clients but an expert would need to clarify if thats right for you.
you might like to look on www.iva.com or contact an expert on here for an initial free chat.
you could do a full and final iva-but this will need to be arranged through an ip.
an expert will be along to clarify.
just wanted to welcome you and post when you need support and help [:)]
I don't know if that amount would be acceptable by your creditors, one of the professionals will be able to help there.
You are right in as much as it is an IVA which is completed immediately, several posters on here have done one.
Is your partner (or ex?) also doing a DMP or IVA? If not, then they come liable for the whole of the joint loans, not just half, even if you offer a full and final.
Why don't you contact one of the experts who posts on here? Their contact details can be found under the experts link on the left hand side of the page. They will advise you as to what you can do and won't pressurise you into anything.
I do know that at least one of them already has clients living in Australia, so that's not a problem.
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
We would do it all wrapped up together (and DMP is joint, no ex's involved).
Either way, do it in a way that clears it all once and for all[:)
We have time as the DMP will take care of things for a while (not been officially accepted yet) and give creditors time to send out standard responses, sell the debt on etc.
Am quite calm, maybe cos I'm so far away but more about not 'worrying' about the situation and concentrating on what I'm going to do about it.
CCCS are doing the DMP. I might use them to take care of F&F or talk to a few experts but initially just gathering info, eduacting myself, terminology etc and then I can at least understand in more depth what options I have (I like to analyse and validate)
Hi Wombat. If you are now living in Australia for good it may be better to avail of the insolvency legislation there. If it is not a permanent move then an IVA may be an option but I would certainly speak to an insolvency practitioner in Australia or the Insolvency and Trustee Service.
Good luck and let us know how you get on.
I prefer to keep the two countries separate if possible. I have a nice clean credit record here and want to keep it that way. We have no credit cards or loans here and will keep it that way (with the exception of a mortgage at some stage).
I will at least investigate the option rather than dismiss it out of hand though, thanks
I understand why you would want to keep your credit record clear in Australia but it may be your best option to avail of Australian law as that would give the best protection for you and your partner. However,if you are going to propose an IVA a lump sum payment may be more attractive to your creditors than a five year arrangement although the residency issue would still be there. Are you coming back to the UK at all?
Have you considered making a full and final offer directly to each creditor rather than proposing a formal IVA? Given that there are only three creditors this should be relatively easy and since you are in Australia creditors may accept the offer rather than pursue expensive legal action. This would not require any legal documents and residency would not be a problem. This may be the best option but regardless something would need done soon or creditors may start applying for charges on your UK property. This would only make the situation worse.
