Which route to take?

[tess73]

Hello
i am new to this forum and am currently £22,500 in debt, started to get behind and have creditors ringing for their money. I'm at the point of not getting the phone when it rings.

I am not sure which is best an IVA, DMP or bankrupcy, I could just about manamge a total repayment of £200 per month.

Being on benefits and partner in part time work and having 2 children i'm at my wits end!!!

Can there be such thing as a joint IVA?

[Andrew Graveson]

Hi tess73,
As well as your income do you have any assets such as equity in a home that you own?
I suspect £200 per month may be a little low for an IVA in the current climate but the insolvency experts will give you a clearer view on that.


Andrew Graveson
Independent Mortgage Broker & MD Bright Oak Debt Management
andrew@brightoak.co.uk
www.brightoak.co.uk

[tess73]

No i have no assets and information leads me to believe that the minimum that would be accepted would be £200

[Andrew Graveson]

Thanks for that information.
I'm sure lots of people on the site will share their thoughts with you as to how you might proceed.
Bankruptcy would probably be the quickest solution to your debt concerns and would enable you to get a fresh start. As you do not risk losing your home this option is well worth considering and you'll find great posts from others who have made that choice around this site.
An IVA, if available, would take five years or longer. This might be a good option if you feel that you wish to pay your creditors back as much as you can afford for that period of time before having a fresh start.
If you were paying £200 per month into a DMP you'd be in a DMP for over nine years. This would be a significant long-term commitment but might be appropriate if you do not wish to go bankrupt, or wish to pay your debts off at a rate that you can afford, and even then perhaps only if an IVA wouldn't work out for you.
I hope this is a useful starting point - I'm sure others will share their opinions with you shortly. Good luck,

Andrew Graveson
Independent Mortgage Broker & MD Bright Oak Debt Management
andrew@brightoak.co.uk
www.brightoak.co.uk

[aguise]

Hi there this is only my opinion as I am like you in debt but in an iva, and please wait for other opinions but if you are on benefits and with a low disposable income then bankrupcy may be the better option for you. If you are on the edge with an iva and something should lower your income then it may fail and you could end up back to square one. Bankrupcy looks the more sensible option for you.

All the best

Ang

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

[scaredkez]

i agree with aguise, considering your situation i would think bankruptcy the best route for you to take, ok it should only be used as the last resort and i am sure you would like to pay as much back as possible, but having little or not assets it would seem the better option given the return of £200 per month and being on benefits, as aguise has already said if something happens a few months in to an iva and you find you cannot keep up the £200 commitment you are then back at square one, i would say bite the bullet go BR and you will be debt free within a year.
all the best
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[lily]

I agree with ang and kerri, you are really better off going straight for BR, even if you could manage the 200 pounds per month I doubt if any IP would consider a benefits income only IVA. Youre probably cutting yourself to the bone to be able to manage that.

Good luck, if you need help on the process there are other people on the forum who have taken this route and can help.

lily

[stockportrico]

Hi all,

I have a few questions about an IVA.

I live with my parents will an IVA blacklist there house?

if i got a laptop about 7 mths ago can pcworld demand it back?

if the company whos taking on my debt told me not to pay my bank I get paid on the 15th of the mth and they told me to take everything out of the bank this month they will collect the payment on the 15th then take out the rest and cancel my direct debit, they say that they will take out what i am paying now then they will only take 1/2 of it I am about 25 indebt and my income is about 1,060 per month my outgoings are about £700 will i get an IVA my loans finish in the same time as an IVA can someone please help me

[MelanieGiles]

Hi there and welcome to the forum

Your parents house will not be blacklisted if you enter into an IVA, but your name and address will be registered at the Credit Referencing Agencies.

With regard to your laptop, if it was bought using a HP agreement, technically the creditor could ask for it back, but given the low second hand value of these items I would say this is unlikely.

You will get an IVA if you fit the criteria for one and creditors accept your offer. If you could pay off all of your debts within a five year period, why are you actually proposing an IVA? But payments of £360 per month, would only cover £21,600 so you would need to pay for an additional year to clear the debts in full.

[stockportrico]

Hi there and welcome to the forum

Your parents house will not be blacklisted if you enter into an IVA, but your name and address will be registered at the Credit Referencing Agencies.

With regard to your laptop, if it was bought using a HP agreement, technically the creditor could ask for it back, but given the low second hand value of these items I would say this is unlikely.

You will get an IVA if you fit the criteria for one and creditors accept your offer. If you could pay off all of your debts within a five year period, why are you actually proposing an IVA? But payments of £360 per month, would only cover £21,600 so you would need to pay for an additional year to clear the debts in full.

I went though this questions on the phone and they said that I have about 21k of debt and I only end up with about £180 per month to myself which I am finding hard to do my head is in bits I really dont know what to do I can go down the IVA or struggle for 5 more years with the loans.

is it right that i can just take all the money out of my bank account and my bank cant touch me I am scared stiff but I dont want to worry my parents an more help would be grateful

[David Mond]

Visit ww.iva.com and have a chat with one or two IP's as to your best route. ClearDebt do have many cases of individuals in 5 year IVA's and paying around £165 per month. Don't do anything rash and seek independent advice.