Advice before I have a heart attack!

[Katharine Norton]

Hi, am going crazy with thoughts of IVAs and bankruptcy and having read about Northern Rock, now in a complete panic – any advice?

I have been living off credit for 4 years now and got to the point of no return with it all at the end of last year. It started when I got an offer of a share in a flat and then last year when I moved to a house. I borrowed from my brother last November to keep me going whilst I took a job here in Saudi. I thought this job would solve my problems but it is only treading water. I realized just last week that I need to admit the extent of my debt and get it sorted. I have fessed up to my parents and they were shocked but supportive.

Basically I owe nearly 65K in unsecured debts including 2 loans, one to the bank (NatWest) and one to Northern Rock. The rest is in credit cards taken out in my attempt to keep it all going as well as an overdraft. The last straw really was last year when I went to the bank to see what they could do to help me with my finances and they signed me up to a loan which took my debt from the 30K to 65K. After that all their advice was to either get some money or they would make me bankrupt.

I’ve trapped myself here in Saudi now for a year as I have to pay my brother back before coming back to face the music in November. I’m due home for 2 weeks in April and intend to meet up with some IPs to see what can be done apart from bankruptcy. I will also want to get in touch with Melanie of course! The stress of thinking about it all from now until November is mind-boggling, but there is nothing I can actively do until I am back in the UK except research – which keeps it all in my head 24-7…

Well, any support from you guys out there would be great. I know it is my own fault, but it really is quite desperate. I have never had so many sleepless nights and pacing up and down!

Kate x

[luluj]

Firstly welcome - you have done the right thing and faced the music. Experts will be along later and I am sure will offer further advice.

Telling your family is always the worst thing, and once they are over the shock they are supportive and it is amazing how close it brings you all!

We used Debt Free Direct for similar unsecured amounts - Natwest was our biggest creditor and after a bit of persuasion they voted yes!

Keep positive - we are now four months in and have just realised that we have not used a single piece of credit now for nearly 8 months - it feels great, and I know come 2012 not only the Olympics will start with a bang,but I will also be free of debt!

Keep smiling!

Lulu

[aguise]

Hi Kate and welcome to the forum. How difficult to be away, wanting to deal with things and being unable to. I am sure you could contact Melanie for some initial advice via email, you may be able to put your mind at rest a little.
We are all here for support or if you feel like a moan, lots of us have those. At least you have some sunshine, the british weather is at usual standard plus a bit wetter. lol.
Anyway I just wanted to say hello and that you should ask anything you want.

Ang x

Please visit my blog at http://aguise.blogs.iva.co.uk/

[Katharine Norton]

Dear both, thanks so much for your messages. It does really help, especially when I am so far away! And it isn't even sunny here - I need an umbrella!
Thanks again, Kate x

[Martin2011]

Hey Kate,

Well done for recognising the problem and beginning the research on ways forward. Seems you've done the hardest bits, though being away and not in a position to start the ball rolling must be dificult.

Ang as ever gives good advice - speak to an IP asap, even by email..... Melanie has an excellent reputation here (and in the IP register feedback) - If nothing else, you'll get some expert advice on options, preparation etc and it might help put your mind at rest a little...

Hope it works out for you and best wishes...

Martin

[MelanieGiles]

Hi Kate

The first step to acknowledging you have a problem is always the hardest, and you do have to stop beating yourself up about this! Yes it is a problem, but one which is going to be fairly simple to solve, put you back on track and actually start to enjoy that fabulous job in Saudi.

I am sitting in a cold soggy Belfast airport at the moment, and the thought of some sunshine would be lovely. Does it actually rain in Saudi?!!

How much of the overall debt is owed to Northern Rock, and is the loan a "together" package which was linked to a mortgage, or just an ordinary unsecured loan. Don't belive all of the tales you hear on this forum about Northern Rock - I actually find them a very supportive creditor if the circumstances fit their insolvency criteria.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Katharine Norton]

Hi Melanie

Thank you for the reply. My loan to Northern Rock is for 20,000 and is unsecured. I only took this job as I thought it would sort out the money but it is only just paying the bills. When I come home in November, it will be for good and I will need to get a job asap - do you think we could still do an IVA or would that be impossible? I really couldn't stay out here passt November, it is a really tough environment plus I am just as broke as at home! I have never missed any payments so my creditors are unaware that there will be a problem until November. Thanks again, I am so stressed about all this plus my family are saying just go bankrupt, which makes my heart sink even further...

Kate

[luluj]

I know it might be harder to do - but why not start the IVA proceedings off now whilst you are in Saudi and in in employment - you can't do an IVA if you have no income so you might be better off going for it now! Ok so the paperwork would have to be doneby post / email / fax but that is possible - might just take a little more time!

Just think though if you do it this way then by the time November comes you could be on your way to a debt free life!



Lulu

[MelanieGiles]

The risk of commencing an IVA now is that you may have no income when you return to the UK. What line of work are you in?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[johnt]

I would agree, the IVA is a sensible route, but two very important factors to consider. It isn't an easy solution. You'll need to save for everthing, as you can no longer fall back on credit, so plane fares, and luxery items are out unless you can save up over time.

Also If you become unemployed or have a period of time with no work, then the IVA has a higher chance of failing. Your IP can advise on this.

I'm repaying nearly £60,000, and 6 months into the IVA I'm coping well, but it will be a long time before I can consider a reliable car, exotic holiday or morgage. Good luck!

[Katharine Norton]

Hi everyone, thank you for your replies - I don't feel so alone and desperate now!

We have to leave the Kingdom for 2 weeks at the end of our yearly contract and so my plan was to come back to the UK end-October, job hunt and then come back to Saudi to hand in my notice and be back in the UK in early November. I have to come back to hand in my notice to get my end of year bonus (2K) and repatriation money (1.2K). That should see me through another month whilst I get a job and then see about an IVA being possible.

Melanie - do you think this is doable? I work as a PA/Secretary so I should be okay getting a job, it's just getting the salary. I have the cushion of my parents being very supportive and offering to run my car for me and a free bed whilst sorting myself out...

I can't start an IVA from here as I won't have paid my brother back until October, plus I am just guessing that my creditors will probably not accept one if I am able to pay them all as I am doing at the moment (albeit with the aid of my overdraft still).

Thanks so much for the advice, although it feels a bit weird reading about myself now - at least I have taken the plunge!

Kate x

[MelanieGiles]

Hi Kate

In that line of work you should be able to find a job relatively easily when you return to the UK. Until then are you saying that you are managing to pay all of your creditors? If not, you need to be careful not to prefer your brother over the other creditors.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Katharine Norton]

Hi Melanie

Yes, at the moment I am making all my creditor payments as well as those to my brother, and none of those will be a problem until I leave here. Will April be too soon to fix up to see about an IVA for when I return in November? At least I will be home for a couple of weeks so I can go through paperwork in advance. I've also got the house rented out so that is a worry too, I don't know whether I would be able to keep that up and running and what the situation with my tenants would be. It is a shared ownership property.

So many questions in my head...! Thank goodness for this forum and that I found you all.

Kate

[MelanieGiles]

Yes Kate, April is too early to start work on an IVA - but in the meantime keep up those payments and try and reduce the balances as much as you can. View the next few months as the time you adjust your finances to working to a budget, as five years of an IVA can be very long.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Katharine Norton]

Hi Melanie, I will take heart that you don't think my case is hopeless and will do my best to get through the months here until I get back to the UK to sort it all out.

I will probably scout the forum regularly to keep my spirits up - everyone is so supportive of each other it is really cheering when you feel it is all too much.

Thanks again, Kate x