www.iva.co.uk

Need desperate help
I'm 23 my life's going on well, got a good job that pays 1800, however here comes downfall:
I lost a fortune to financial markets in 2 weeks which includes my savings credit card and loans after enjoying a very good time trading the financial markets, unfortunately due to panics I started pumping money from my credit cards until I maxed everything out trading.

I now owe 11 creditors a total of 70k.

I have had advice from debt charities who proposed iva or bankruptcy as my disposable income is about 150 a month, I have 2 kids. I have opted for a DMP this could take about 40 years if interest is frozen or that's even if they agree to a dmp this long and a bit unrealistic which scares me.

I can't go insolvent as its just not worth the damage it may cause in future, I know if comes off after 6 years but some creditors or may be companies ask if you have ever been insolvent regardless of how long it was.
I really am starting to feel low and almost dead that I may have ruined my future which was really bright 1 week ago.

Did I just ruin my life in a week? I may spend years and years paying debt I didn't even enjoy?

I've previously dealt with depression on my own due to a relationship breakdown which was really hard at the time.

Now what I am going through is just worse than depression as the pain of my relationship breakdown has come back + this debt, I feel like not existing, but I can't as I have kids.

My breakdown is
Rent £390
Bills £50
Child maintenance + child minding £390 (2 kids)
Fuel £240 (work 68 miles daily)
Insurance £130
Food and toiletries £290
Hair £11
Leisure £11
Clothing £30
Emergency £12
Dentist £10
Medicine £11
Mobile £30
Car tax £22
Maintenance £20.

I get worried now asking myself will they accept my proposal?

Will they decline for reasons such as it will take 40 years to pay off?

What's the worst they can do to me?

I'm hoping they agree to this dmp and I'll offer 20% f&f settlement, could they accept this?

Please help!

A DMP will actually affect your credit rating as bad as an IVA or Bankruptcy, so i suggest you contact an insolvency practionner with your details, and let them give you as much info as they can, to help you make an informed decision.

Vincent Bond is the sponsor for this forum, so well worth contacting and also we do have other specialists who come along and will hopeful pick this up for you.

Hi and welcome,

All debt solutions will damage your credit rating and a 40 year DMP is worse than a mortgage!!

At least with an IVA it would be over in 5/6 years.

As Mrs R says - have a word with Andy Davie/Vincent Bond (details under the expert link on the left hand side of the page) for some free advice.

On the face of it Bankruptcy sounds like the way to go given you have no assets at stake.

Most if not all of your debts will be written off.

Your credit rating will be shot for 6 years but it is shot anyway and will also be in a DMP.

40 years of a DMP is going to be onerous! In Bankruptcy the longest you would make contributions (if you can afford them) is 3 years.


You might find this quick video guide useful:

https://www.youtube.com/watch?v=mAkQsVSCnqo

The problem with a DMP is that they don't have to stop interest and they can change their minds at any time ... they could even decide to make you bankrupt anyway!

Incidentally ... "that" question lenders in the future may ask ..... more and more so they are phrasing the question to cover wider debt solutions and many will now ask if you have ever been in "an arrangement with creditors or compounded your debts", so you could get caught this way too.

You are 23 - do what is needed now to sort this out and it will give you a chance further down the line.

Don't and it will haunt you and affect everything you do in your 30's onwards.

Mate for 70k of debt I'd just go bankrupt and be done with it.
I'd only choose an iva over BR if you have assets you want to protect, like if your a home owner.
Your a young guy, and you've got plenty if time to recover financially.