www.iva.co.uk

I've got debts of 32k, credit cards and loans. I was made redundant 18 months ago after being at the same place for 25years. I got a job 3 months after I was made redundant on 25k a year doing similar work, but it involved working a rotating night shift. I was happy doing the work but simply couldn't handle working a nightshift. I left there after 8 months struggling with it. I got another job 3wks later which I like doing, I've been there 6 months now.Unfortunately the money, 17k, is too low for me to sustain my debts. I've been using the redundancy money I received 18 months ago to supplement my pay. This has run out. I found out today that I don't qualify for an IVA or even a DMP, I only have about £100 to offer my creditors a month. I have a flat with maybe 15-20k in equity. My mortgage is £431 a month. If i sold it i would have to rent somewhere, which would cost me 6-700 a month. I'll never get another mortgage (I've tried)and i still won't pay off my debt. My No1 priority is keeping my flat. I have contacted CAB and am waiting for their reply. The wolf is at the door. I've never missed payments on anything in my life before, I've had a loan or cards of some kind ever since I left school 30 years ago. I'm pretty scared, to be honest. What happens if have a CCJ against me?

hi DB im sorry youre having a stressful time-believe me i understand how youre feeling-we all do. the priority at the moment is keeping a roof over your head. if you have only just begun missing payments then a ccj wont happen straight away-
im not able to offer technical advice but who was it that said you wouldnt qualify for a DMP ?
keep posting questions an expert will answer soon

Hi David
What reasons have you been given that an iva or dmp is not suitable for you and who's given this advise?
I would contact a few different companies for second and third opinions. You can read reviews at www.iva.com for different companies. Melanie Giles is highly recommended as are size5 and David Mond.

Hi David.

Can I suggest that you phone one of the experts who post on here? Melanie Giles, Size5, and a couple of the debt advisors, Andy Davie and VikiW come highly recommended.

You can talk things through with them and they will advise you as to what your best option is. You can find their details under the expert link on the left hand side of the page here.

I contacted Phillip Gill & Co. I think the advice they gave was honest. They were not trying to sell me an IVA or a DMP. I have heard stories about some IVA companies that try to sell you something inappropriate. When the lady said I would not be able to go onto a DMP my heart sank, I thought what do I do now. I went onto the government website and looked at what a CCJ means, it may not be as bad as it sounds. The Judge would be fair to me I hope once I tell him my situation. I know my credit rating is shot now anyway.

Hi

Philip Gill & Co is one of Melanie's companies so you have obviously had good advice.

the options available are then either a DMP or Bankruptcy.

It is certainly worth doing some research on either to see what the implications are and how they will effect you and your life moving forward.

It is also worth doing some serious research on the value of your flat. Often we like to be over positive about the value of our assets but in reality property prices are falling dramatically and you may well have less equity than you realise.

And if you do have less equity than you thought, you could go bankrupt and possibly keep your property. It's worth giving it a go.

Thanks for the replies, they are much appreciated believe me.I thought I would lose my flat If I went Bankrupt? My flat was valued at 90k 3 years ago. I have a 65k mortgage on a five year fixed rate that has 18 months left. If house prices have fallen 20% I suppose there will be about 7k in equity left in it. At what point would you be told that if you go bankrupt you would lose your home?

Assuming that you were to declare Br then the Official Receiver would actually own any equity in the property and in order to retain the flat the a friend or relative would need to find the agreed equity to buy it ( the equity ) from the Official Receiver.

Really would suggest you do a little research on the internet re values as this will be a major part of your decision process moving forward.

I will try and get a valuation of my place done. So when you say a friend or relative, does that mean I sign it over to them?

I am concerned that you believe you were advised by a member of my staff that you are not eligible for a DMP. Perhaps there has been some confusion here, and I will make some enquiries as this does not sound right from the limited information I can glean from this post.

I was about to post the fact that a DMP might be appropriate and provided interest could be cancelled might be appropriate. Have another chat with all the facts with a number of practitioners as recommended above or visit www.iva.com for several recommendations.

I sent the lady i spoke to my outgoings/incomings and a list of my creditors. After looking at that she told I couldn't afford an IVA and passed me over to a colleague who would discuss a DMP, and maybe go back to her in 6 months time for an IVA if my situation improved. But when they called me back later another lady said I was ineligible for that too. I must stress that they were very helpful and gave me some good advice and I felt I was in good hands. That is what makes it disappointing that they are unable to help me. I was told about the seriousness of CCJ's and that I must respond to them if I get one. I think the problem is that I only have £100 a month to offer my creditors. I Have tried to remortgage to repay them, but due to my low wages they won't do it. I doubt I would ever get another mortgage, so I am desperate to hold onto the one I have.

Noted but speak to a different firm of practitioners and see what a second opinion can bring - good luck.

David, what happens is that someone you know buys the beneficial interest in your property from the Official Receiver. The total cost for this is £211 (court costs), plus the equity? I am sure Paul Johns will correct me if I am wrong. This means that your property is taken out of the bankruptcy.

I'm not sure, but I believe that once the bankruptcy is finished, you can buy it back.