Am in around £15,000-£16,000 worth of debt

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tom.m

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Post by tom.m » Wed May 12, 2010 10:54 pm
Hi there I contacted this website a couple of days ago concerning the debt I am in the the moment. Am in around £15,000-£16,000 worth of debt due to 9 creditors which consists of loans and credit cards and store cards. I work for Subway and take home average of £600 a month. I pay rent on the house am living with at the moment of £90,as my Mum is on benefits so she doesn't have to pay any rent,(the house rent is £550 n Mum gets £460 help so I have to contribute the rest) & I also pay her keep of £160 a month (£40 weekly). My other outgoings are busfare to work each week which totals £60 a month,I have internet broadband to pay aswell as contact lenses £15 a month as well as providing food for my dog which is about £20 a month. I also need money for clothes now and again and also help with the phone bill.
I haven't paid any of my creditors for a number of months now and I have asked for bankruptcy forms from the courts to fill out as i have booked an appointment to declare bankruptcy on Monday the 17th of May. However I have bin informed of an IVA which the court might decide to best for me,as I do have around £40 a week left after I have paid out all my outgoings. I have read that due to me having this small extra money left an IVA is more what I should be looking at,however I have read on here that the creditors look for a 'respectable' amount back on the IVA which is usually £200 a month,which I would be unable to pay. I am just becoming increasingly worried at the moment as I have had a few rude phone calls from creditors recently after I have explained about my bankruptcy decision with one saying am too young too be going bankrupt(Am 23).But with my debt at nearly £16,000+ with interest and charges I don't see any other way out of my predicament.
 
 

Lisa2009

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Post by Lisa2009 » Wed May 12, 2010 11:05 pm
Hi
Take a look at www.iva.com where you will find a list of IVA providers and reviews on each.
Have a chat with 2 or 3 for some free advice on the best way forwards for your individual circumstances.
They should fully explain ALL options available to you.

Good luck
http://mrsskint.blogs.iva.co.uk/ 'Our Story'


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Shining

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Post by Shining » Thu May 13, 2010 7:09 am
Hi Tom and welcome to the forum, a great link provided by Lisa and I would urge you to talk to 2 or 3 companies to get some free advice specific to you and to help you find the best debt solution for your cirucmstances. There will be one and I wish you well x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
 
 

kallis3

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Post by kallis3 » Thu May 13, 2010 8:03 am
Welcome from me as well.

I do agree that you should take professional advice before making any decisions.

Click on the link provided and give one or two companies a call.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
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size5

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Post by size5 » Thu May 13, 2010 9:00 am
It is a very personal decision, and one that only you can make, but certainly a no obligation chat with one or two firms via the link suggested would at least see you armed with all the pros and cons of all options. The affordability factor itself, which you suggest is £160 but I suspect is a bit lower in reality, should not in itself bar you from the IVA process, but it may certainly rule out some organisations who will not, for operational reasons, be able to work with lower disposable incomes.

Good luck and regards.
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wannabedj

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Post by wannabedj » Thu May 13, 2010 9:10 am
Hi Tom

I was in a very similar position to yourself. My debt only totalled £15960 but my monthly out goings were massive and not 1 of my creditors were helpful. a DMP was declined as they said they couldn't help me. I only had £80 a month to myself. I was certainly contemplating bankruptcy but opted for an IVA instead. Now I pay £208 a month. Its a struggle but its a massive weight off my mind.
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Michael Peoples

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Post by Michael Peoples » Thu May 13, 2010 9:32 am
If you list all of your allowances it is likely that you would have no surplus for the OR to take. I would be inclined to continue with the bankruptcy but take some advice on what your allowances actually are. While £160 per month can be acceptable for an IVA, it may be far too tight to last five years.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
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If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

mark2010

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Post by mark2010 » Thu May 13, 2010 10:10 am
Hi Tom,

This time last year I was in a similar situation to yourself do I go Bankrupt or opt for an IVA, Glad to say I went down the IVA route[:D]

My Total debt was around £21000 and I have been paying £160 a month into my IVA since in was approved July last year. So there are companies out there that should be able to help you out. Shop around a few different companies (I'm with Baines and Ernst).

Good Luck!
 
 

L-E-E

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Post by L-E-E » Thu May 13, 2010 10:11 am
Hi Tom.m

Sound advice from Lisa and Lesley. It is always good to speak to a couple of companies. Hopefully they will all tell you the same sort of things. Then you just need to decide who you would like to go forward with.

Before committing to any company and particular course of action post on here again and the industry experts and people who are or have been in your situation will be more than happy to help where they can!

Lee
 
 

kallis3

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Post by kallis3 » Thu May 13, 2010 10:14 am
I agree with Michael that whilst you can do an IVA on a lesser amount than £200, you may find it very tight.

With BR you can wipe the slate clean and start again.

However, do speak to a couple of companies. There are some who will do an IVA for a lesser amount.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk
 
 

plasticdaft

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Post by plasticdaft » Thu May 13, 2010 10:28 am
I think bankruptcy would be a quicker and less painful option for you,given the level of disposable income quoted,and the fact that you have no assets of value(cars,houses etc).

Its not a decision that should be made without talking to someone but dont accept one persons opinion,many firms will be keen to propose an IVA as they would get paid a fee for the next 5 years out of your contributions.

Please let us know how you get on,and also what advice different companies give you.

Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
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