www.iva.co.uk

Hi,

I have around £17000 worth of debt mostly in the form of overdrafts, only £2000 being credit cards. Due to illness I haven't worked for six months and while I've not defaulted on any payments yet, and I am starting a new job in Jan my outgoings are going to be higher than my incomings. Previously I was getting into more debt with different companies to pay off other companies, but now my credit rating is shot due to late payments and cannot get any other credit. I was looking at an IVA however it would seem I would need a regular income and due to my illness that is never guaranteed. I'm hesistant of declaring bankruptcy as I'm not fully aware of the implications and I'm only 22. Does anyone have any experience of a situation like mine?

Thanks

Amy

welcome to the forum..my advice would be to take advice from the experts on this forum.....you will gain strength from us all ....we r all in the same position

Hi and welcome from me too. Sorry to hear about your illness and hope you are recovering well.

With your relatively small amount of debt, have you thought of doing a debt management plan? This way you will pay off all of your debt, just over a longer period. It is not guaranteed that interest and charges will be frozen though.

Who are your creditors? If one of them holds the majority of the debt, you might find it difficult to get an IVA.

Bankruptcy is another option and is nowhere near as daunting as you think. It costs £495, all your debts are written off and you can be discharged within a year, sometimes sooner. Dependent upon your income, you may have to pay money across for three years.

I recommend you phone an IP and discuss things with them. They will go through all the options with you and recommend a suitable course of action for you.

Visit www.iva.com where you will find lists of companies to call. The advice is free.

There are several advisors who post on here who come highly recommended, such as Melanie Giles, Andy Davie, VikiW to name but a few. You will find their contact details under the expert link on the left hand side of the page.

Give them a call.

Hi Amy and welcome to the forum.

I would recommend that you speak to 2 or 3 companies and take advice about your situation. Melanie Giles who posts on this forum is highly recommended.

Regarding BR, it could be an option for you - do you have any assets that could be at risk, i.e. house, car?

I think that you need to obtain proper professional advice with regard to all of the options currently available to you, Amy, some of which may not seem quite so bad or frightening when you learn more about them. Most IP offices ought to be up and running again tomorrow, so why not pick up the phone and have a chat with one or two to determine how it is best to tackle your debts. At such a young age, and with a relatively low level of debt, I am sure that you will find a way forward to accomodate the ongoing repayments to work around your work commitments.

Welcome to the Forum. Professional free impartial advice is a must and can be obtained without too much problem. As mentioned visit www.iva.com and select one or two practitioners who you feel are able to help you. You are young and Bankruptcy, which might be an option, might not necessarily be right for you - only a full discussion with an IP knowing all of your facts will enable the most appropriate solution to be given. Good luck.