Would i qualify for an IVA?

[Beechy]

If you want to let me have more details I will have a look at the overall picture

Dave Beech

[david_f]

Hi.
We don't own any property, we live in council temporary accomodation {not as bad as it sounds!} We owe credit cards, Hire Purchase from 1999! {we no longer have the vehicle}, Catalogues, Abbey National, BT, Vodafone. A lot of the debts have been passed to Moorcroft.
Been with Payplan for just over a year when our debts were fifteen thousand pounds, they are now nearly eighteen and a half thousand.

[Beechy]

I realise that you want to make repayments to your creditors but are you sure that DM or and IVA is the best way forward.

If you were to go bankrupt there would be possible implications with a private landlords requireing a larger deposit than normal due to bankruptcy.

But at the end of the day it would give you a clean break and stop the hassel from creditors, i just cannot see what you have go to lose unless there are other things that prevent you from bankruptcy.

You may have to make payments to the OR for 36 months, this would be between 50/70% of you disposable income, which if you do have private rental may not be that much if any, that would be dependent on the OR and you disposable.

Let me have your thoughts

Dave Beech

[david_f]

Sorry to be stupid, but what is OR!

[Beechy]

Sorry, OR is the Official Reciever who manages the bankruptcy once is has been through the court process. If you want an idea what bankruptcy involves I will take you through the steps.

Dave Beech

[Lisa2009]

Official Reciever

[david_f]

Thankyou. Do you have to pay to go bankrupt? Will it prevent me from getting a mortgage later on? Do i have to go to court? Is Bankruptcy guarunteed? Can i start a business? Will they take my car {old ford!} Lots of questions i know, but i thought i was set on an IVA!!! Now i'm not so sure.

[Beechy]

I will try to ansewr each question point by point
1) You do have to pay for Bankruptcy £470 (less if your income is benifit based)
2)The Bancruptcy stays on your credit file for 5/6 years, during you bankrutcy which is lasts for upto 12 months (average is around 8 months) you cannot get a mortgage. Once you have been discharged from bancruptcy you can apply for a mortgage. The chances are that you will not be able to get a high street lender for the mortgage so it may cost a little more than usual.
3) You will have to file your papers at court, this is not as scarey as you think.
4)You cannot be a director of a business while bankrupt, but there is nothing to stop you having a business as long as you do not have credit.
5)If you have an old car of little value the OR will not be interested.
These are brief responces to specfic question if you need any more detail let me know

Dave Beech

[david_f]

Thankyou for all of your advice.

[Beechy]

One more thing before you can file for Bankruptcy you will have to show that you have sort professional advice on your financial situation. Thre is a booklet provided by the insolvency service that might help. Its a bit wordy but gives the full picture

Dave Beech

[david_f]

My DMP would be okay?

[Soulgrowth]

Hello David

I am not an expert here just someone who has been dealing with their debt over the last couple of years. I truly think that if I hadn't had my own home to try to protect then the option I would have taken would have been bankruptcy.

Keep in touch with the forum as there are a number of members here who will be able to support you and share their own bankruptcy and IVA experiences. It might be worth reading some of the Blogs on the forum as well.

All the best

Debbie

www.familyceremonies.co.uk

www.soulgrowth.co.uk

[Beechy]

what do you mean "My DMP would be OK"

If you go bankcrupt the slate is wiped clean except for the payments to the OR (if there are any to be made)


Dave Beech

[david_f]

Sorry did'nt make myself clear, i meant would my DMP be sufficient to show that i had sought professional advice on my financial siuation?

[Beechy]

More than likely, most of the people I deal with we have personal meeting with to see if an IVA is the best way forwrd if it isn't leave them with a business card and some information to show they have spoken to someone from a professional company.


Dave Beech