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Head above water

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Post by Head above water » Sun Nov 22, 2020 9:01 am
Hi long story short I got my self into 69k worth of debt lost my job ended up on universal credit long term I live in my brothers spare room after speaking to few company’s who advised me debt was too high for DRO and it would take a million years on a DMP my only options would be IVA or BANKRUPT wanting to avoid bankruptcy at all costs I selected to go IVA I went with Hanover did I/E form they worked out that I could afford £80pm for 60months which works out £4800 now compared to 69k this sounded like a good option they did attach a modification saying due to my mental health I must apply for pip within 16weeks and keep them updated the £80pm was calculated based on my income of £409.10pm
I’ve payed 5 months and still haven’t had an assessment for pip yet as the process alone is to overwhelming never mind struggling to pay the £80
Chairman’s report says Supervisor's Fee £2916 and Amount Available for Unsecured Creditors £1884
A family member has offered me £3500 as a full and final settlement I’ve already payed £400 in payments and they would probably get another 2 payments why they were seeing if they would accept offer total £4060 do you think they would accept this offer or refuse me hoping I get pip so they could try n get more pm or should I pay the £750 instead of £3500 to go bankrupt as I have no assets whatsoever I hope you can make sense of what I’m asking if you need any more info to advise me best way forward

lifenoteasy

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Post by lifenoteasy » Sun Nov 22, 2020 10:13 am
Only you can make the final decision but the IVA is at least a 5 year process.

Going bankrupt may mean that it only applies for 1 year and may be a faster process.

By the looks of it you can do it yourself https://www.gov.uk/apply-for-bankruptcy.

None of us can say either way what you should do, but you are paying 20% of your income to your IVA from what is a very small pot to begin with.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.

Foggy

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Post by Foggy » Sun Nov 22, 2020 10:56 am
What are your reasons for avoiding BR ? I can only echo Lifenoteasy's advice. Additionally, due to being on benefits, you could be eligible for reduced fees for BR.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

Head above water

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Post by Head above water » Sun Nov 22, 2020 4:37 pm
I avoided bankruptcy as I thought it was the final nail in the coffin and just over the years ya hear everyone saying ya don’t want to go bankrupt it’s last resort so when I found about IVA I jumped at the chance. Do you think they would accept the full and final offer as they are hoping to get more money of me if I get awarded pip ?????

Foggy

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Post by Foggy » Sun Nov 22, 2020 6:39 pm
Getting awarded PIP is a long shot and might never happen and you have to keep the IVA going in the meantime.

Bankruptcy isn't the stigma it used to be and they no longer use pillories and rotten cabbages to punish you. If you have no assets to lose ( car, house, famous artworks or a Rolex ) and your job isn't sensitive (financial, legal, or BR is just prohibited by your employer) to the issue it is often better to just rip the plaster off ... short, sharp shock.

I would suggest a chat with your local CAB to get the ins and outs.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

Head above water

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Post by Head above water » Sun Nov 22, 2020 6:59 pm
I don’t have any Rolex no assets I have nothing all income is benefit based don’t own my own home if I ring iva tomorrow and explain look I’ve made a mistake I Carnt afford the payments all the worry and stress isn’t doing my mental health any favours you either accept £3000 to end it all or I’m going bankrupt and you’ll get nothing is this a good idea or is there a better way foggy ??

Foggy

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Post by Foggy » Sun Nov 22, 2020 7:23 pm
It is worth a shot -- but not so blunt :-) To be fair the creditoprs are going to be messing around for a few years and get virtually nothing after accounting for the times spent accounting for dribs and drabs, and you have nothing to offer in BR --- they might as well take what they can and save the time and effort going forward. Get your IP on side and that is how he will present the offer.

Good luck.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

Head above water

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Joined: Sat Nov 21, 2020 12:55 am

Post by Head above water » Sun Nov 22, 2020 7:59 pm
Thank you foggy for your advice I’ll not be so blunt to them. I’ve not always been in this situation I used to drive lorry’s and diggers and dream about being in the property industry which requires my credit report to be of a good standard. However I feel that going bankrupt would Hinder me worse than an IVA? Although I’m a long way off achieving this dream and may never happen this was the main reason for making them an offer to avoid the bankruptcy what are you thoughts on that ?? Thanks in advance really Grateful of you sharing your fountain of knowledge

Foggy

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Post by Foggy » Sun Nov 22, 2020 8:24 pm
The IVA will remain on record for 6 years from the start. BR would also remain on record for 6 years, so, yes, the IVA will clear a bit sooner now.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

Head above water

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Post by Head above water » Tue Nov 24, 2020 7:57 pm
I have spoke to my Iva company yesterday and they said they would take my f&f offer to the creditors they have requested copy’s of driving licence proof of address and proof of funds which has been sent to them. I have explained my situation verbally on the phone but do I need to write them an email Confirming everything I said on the phone ?? Or is there anything else I need to do ?? She did mention it could take upto 28 days to get an answer after sending it over just wanted to check with you experts first before I call them back tomorrow to ask if they received all his details

Foggy

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Post by Foggy » Tue Nov 24, 2020 8:51 pm
You should be OK -- I did the whole of mine on the phone.

Best of luck with it.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk
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