Up to my neck & rising...

[Broke of London]

Glad you got some good advice this morning TM! Have a chat to a few more advisors...particularly now you are swaying between an IVA and BR.

You don't appear to have any assets to protect so if BR doesnt affect your job, then it could be a very good solution and you'd be debt free by 40. The payments would be similar but in BR they only last for three years instead of five in an IVA. Also, you may want or need to move into a place of your own over the next few years, and a reduction in disposable income wouldn't result in your BR failing...as BR cannot fail unlike an iva. It's important you think about your future as well as the here and now. Five years is a long time!

x

[TotalMoron]

I think the problem is that i've been viewing bankruptcy as a quick fix. Plus it's such a scary thought, i've always had an idea in my head of vans full of bailiffs clearing out your possessions & leaving you with nothing.

Reading up, it seems more like a clean slate that lets you finally move on with your life. At 36, do i really want to be living with my parents for another 5 years? What if, heaven forbit, something happens to one of them? I was hospitalised 6 years ago with a serious illness & was unable to work for the best part of a year. I was fully paid thankfully, but what if i have a relapse & work aren't so generous this time? What if i have an accident or get made redundant? So many what-if's going through my head that would make an IVA unsustainable.

Gah! A time machine would be a wonderful invention to have right now.

[MelanieGiles]

You should not be scared of bankruptcy TM - remember it is a sanctuary to remove yourself from unaffordable debt which is your right as a citizen of this country. Personal possessions are not affected, so long as they are necesssary for basic life needs and are not of extreme excessive value, and for many people it really does present that clean slate you desire.

There are always many "what-if's" when making important life decisions, but at the end of the day if you do decide on an IVA and things go wrong at some stage in the future, you can file for bankruptcy at that stage if you need to. Take you time to make the right decision, and gather up as much information as you can in the meantime.

[Broke of London]

There is a lot to think about! Unfortunately, you'll get tonnes of advice on here but we can't make the decision for you and it is a tough call.

The advanges of BR are that it may well allow greater flex for life changes and you are at that age (as am I) where you meet people, maybe want to live together, perhaps start a family etc.

The main BR disadvantage for me was the difference in getting a mortgage post BR and post IVA - lenders don't seem to make any distinction between them now and mortgages are possible following any form of insolvency.

You could try writing down the pros and cons - see where you end up.

x

[TotalMoron]

That's the thing, i feel like there's so many things i just can't do right now & the thought of being trapped in this position for another 5 years just makes my heart sink.

I accept fully that i've been extremely foolish & taken on waaaay more than i can manage, but it's not like i've lived like a king for years. I'm just an idiot who's signed up for credit without realising the reality of how much it'd affect him.

I have a TV that i paid £500 for 4 years ago, a 3 year old £150 Xbox, a '98 reg car that turns into a mobile paddling pool whenever it rains, & a £200 Blu Ray player. Worth it? Definitely not.

[MelanieGiles]

Reading through your posts it does appear to me that there is more of a leaning towards bankruptcy than anything else - and there is nothing wrong with that, remember it is a process for you to very much avail of.

I would speak with an IP who will give you advice on all solutions, rather than trying to steer you down one particular route. You are bound to have lots of questions you need answers to, and you do need unbaised advice.

[TotalMoron]

Thanks Melanie, there's a good chance i'll end up giving your firm a call within the next week once my head is straight.

Never thought i'd end up in this position, it's an extremely sobering thought.

[MelanieGiles]

We'll be delighted to chat things through with you - and I think we can help to dispel some of the myths you may have in your mind about the darker side of bankruptcy. It is important for us to make sure you are fully armed with all of the facts before making a decision, and trust me when you get to that point there will be a clear front runner which will feel right for you to pursue.

[Broke of London]

It is a very sobering experience when you realise you've dug yourself a hole. But don't dwell on it now!

You are beating yourself up way too much. You (and I) took on a bit more debt than we could handle; silly maybe (defo in my case) but not bad people.

Wise words from my IVA provider about writing off debt, "Your creditors won't be losing any sleep over this so don't worry about it".

Let us know how you get on with your thoughts! I'm sure you're going round and round in circles!!

[TotalMoron]

Don't get me wrong, i'm actually a pretty decent guy! But who else can i blame? Nobody put a gun to my head & asked me to borrow money. I did it. Granted, a guy who's on 1k a month should never be given access to 25 grand's worth of credit (if my cards were maxed, we'd be talking debts closer to 40k) but it's entirely my fault.

I looked at the effect it'd have today, not a month, 6 months or a year down the line. Now here i am, in a totally desperate situation & with nothing to show for it.

I need to be hard on myself, how else can i learn from it?

[Slipperysnake]

When you have a chat with the Iva company then you will feel a lot better and see what the best way forward is for you I wanted to pay back in the best way that I could I could not have carried on anymore
My monthly payment was lower than the bank loan I had which had 5 years to run So in my case it was a no brainer
5 years is a long time looking ahead sure no doubt But once you start to borrow you are quite aware of the fact that its going to take time to pay it back anyway
There is no quick fix and I know how you feel like you just want everything back to normal and how the hell did it get to where you are now natural to be angry with yourself
As I wrote you need to push on now make your phone calls get expert advice and let the experts guide you in the best way

Most people here are just giving some feedback on there journey same as me and are at different stages so their viewpoint changes over time anger and scared at the start then the happiness when they get accepted then as time marches on they get fed up then cheery again at the half way point then the countdown in the last year
Just coz you are paying a monthly fee evert month your life doesnt stop Pretty muxh all your friends will be struggling no matter what they tell you I have a friend who works and has no money at all to save then he has to work for his dad to get spending money My other friend bought a car 3 years on finance and a mortgage and kids So evrybody is in the same boar very few are on the beach

[Foggy]

TM -- you needn't be too hard on yourself. You are going to get 5 years re-training and "re-hab". That will do the trick!

Being in an IVA does bring you up short and teaches you to be more honest with yourself. When I was racking up the level of debt I was seriously in self denial and honestly thought I owed about half of what it turned out I REALLY owed !!!

[Broke of London]

Taking responsibility is one thing but you don't need to bash yourself over the head with it. Whichever debt remedy you chose will be a tough path to follow and you'll learn about the value of money. Trust me! When I started on an iva I felt like I'd been given a get out of jail free card and felt terrible about abandoning my responsibilities as I saw it; but it's hard work and I feel more accepting now because I know how committed I have to be to make the iva work.

[TotalMoron]

After yet another sleepless night with all of this running around in my head, i think i'm gonna go the BR route. I literally have nothing to lose whatsoever & seeing my parents struggle because they aren't getting anywhere near what i should be paying them is completely wrong.

We live in a council house & they lose approx. £65 a week in benefits because of my wage. I pay them 300 which doesn't even begin to cover the additional household bills that i cause.

Would the OR basically expect them to keep me for 3 years til my BR is over? Are they reasonable with regards to expenditure. I need to contribute or we'll all go under.

[Niobe]

You will be given a set of allowances similar to those in an IVA. Once they are all sorted and if you have any disposable income over £20 a month then the whole lot will have to be paid across to the OR for 3 years.

The fees for bankruptcy are £700 - will you be able to get that money together?

Speak to an IP and they will give you some free advice.