Hi,This is my first time posting here,

[dpm]

Hi,
This is my first time posting here, so apologies in advance if I am on the wrong thread/board/area.

I am currently with a debt management company, who charge me an amount each month to assist me with my debt problems.

Several people have suggested I try cccs, (we did, but they were the most unhelpful folk I've encountered), that I try citizens advice bureux, (ours is a small and ill informed branch), hence me ending up as we are right now.

Today I've been asked again, why I don't go bankrupt or have an Iva - firstly, I would really like to pay back those I borrowed from, secondly, I'm frightened about what each of those entails and thirdly, I don't think I am eligible for iva and that bankruptcy may be even harder for us.

I'd really appreciate help in sorting the myths from reality, to really weigh up if there are any other options for us.

[kallis3]

Hi and welcome to the forum.

Why do you not think that you would be eligible for an IVA?

An IVA lasts for 5/6 years and you pay back what you can afford. BR is fine if you have no assets, such as a house to protect.

Can you post us a few more details as to what you owe?

[kallis3]

Depending upon your proposal, you can usually keep the first £500 of a windfall.

Bankruptcy fees will cost £600 per person. You will pay fees to an IP for them to set up the IVA and supervise it for the whole period. These fees are included in your monthly fees.

[dpm]

Hi,
Let me know what details would help you to help me, as I tend to babble on a bit.

There is £130,000 of debt (this is loans, credit cards nothing secured). We have two properties, one is our house, mortgaged, don't think there is any equity (but will need to have it valued to find out).

The other (and this is where it could be long winded) was my late mother's. She had a lifetime mortgage and needed to move in with us for care (she passed away in feb), the lifetime mortgage had "issues" so I bought it, with a buy to let mortgage. Social services has "issues" so it wasn't let during Mum's time with us, but since her passing, it has been now rented out, but there is no cash coming in from it, it just covers the mortgage payment and the agent's fee. This was in neg equity, but unsure if it's just about back from this now or not.

Because I was a full time carer, I gave up work, have been looking for anything from Loo cleaner to Manager positions, but due to gap on cv, I haven't got too far.

Hubby was made redundant 3 times, in 2 years, has just got a full time (paying peanuts) job, bless him.

Originally we were told no to IVA, as neither of us had a permanent income/job.

[MelanieGiles]

What a shame you have received some helpful advice from the "charity" sector. How much are you currently paying into your DMP per month?

I don't see why an IVA ought to be denied you, but being able to commit to regular repayments is pretty essential. Why note take some advice from an insolvency practitioner with regard to all of the options, to see what you can and possibly cannot do.

Best of luck on the job front - with such a positive attitude I am sure you will not be out of work for long.

[dpm]

I hope this will not sound rude, it's sincerely not meant to, but how do I know if I have found a reliable, safe and genuine IP person to talk to about this?

Are there certain things I should look for, (maybe letters after their company name?).

[dpm]

I'm just going to nip offline for this evening, as I've got a few more jobs to apply for.

Thank you all for your kind time and help today.
All the best.

[kallis3]

You could do worse than use one of the companies who post on here - they are all recommended and you can find their contact details under the experts link on the left hand side of the page.

[MelanieGiles]

If you are talking about me - I am a FABRP, which stands for a Fellow of the Association of Business Recovery Professionals. I am also a MIPA - which stands for Member of the Insolvency Practitioners Association.

All IPs have to be professionally qualified, and be licensed by one of the regulatory bodies.

[dpm]

Morning,
Thanks for letting me know there are companies on here to talk to.

I understood there were qualified people on here posting, but didn't know I could approach them as a potential client.

Can anyone tell me anymore facts about bankrupcy please?

I am married, have a 9 and 11 year old. As I understood, you pay a fee, you lose everything, except a small amount of your essentials. You do not keep your home etc.,

However, I'm being told that this is not true, if I have children. I don't seem to be able to find any correct information about it.

[Skippy]

BR isn't as scary as people think and it doesn't necessarily mean that you will lose your home. Someone can make an offer to buy your beneficial interest, and if you are in negative equity this can be done for a nominal fee of £1 plus £210 fees.

If your car is needed for work and is worth no more than approx £2k you will be allowed to keep it. If it's worth more than £2k and the OR agrees that you need a vehicle yours will be sold and you will be allowed money from the sale to buy a more modest car.

Household items are generally not affected unless they are valuable.

I would recommend speaking to an IP who will be able to discuss all your options with you x

[dpm]

If I find a local person to talk to (I've been to two, both gave vastly differing advice, so I was left confused), will they be able to review, say what "will" happen, or do they set a plan, but then it's up to the Courts or others to say a yes or no to it?

I'm scared to dip a toe in, being told all will be ok, then find that isn't the case and it's too late, as I've set the ball rolling and cannot then stop it. (hope that makes sense).

I guess we've clung on so long, I'd hate to lose everything now. People keep saying as long as we've got each other, that's what matters, easy to say when you aren't facing losing everything in your life and dragging two young children with you through it.

I'm worried they could be taken away from us, if we end up homeless.

At the moment, my life feels as though I'm in thousands of square miles of deep water, sharks circling, my lifejacket is going down, I've got no food or water and the only ship on the horizon is named Titanic ! lol.

[Skippy]

If you speak to an IP they don't have to be local and I would suggest speaking to one of the experts who post on here. They are all highly recommended and will be able to give you free advice to help you decide the best way forward.

No one can be 100% sure what will happen. If an IVA is an option and that's the route you choose then a proposal will be prepared and then it's down to your creditors to approve the IVA.

If you choose BR then you will complete the forms, pay £600 each (unless you're on certain benefits in which case it's £450) and the court will make you bankrupt.

You will then be interviewed by the Official Receiver (which isn't as bad as it sounds), who will go through your income and expenditure and decide whether you have enough disposable income to pay into an Income Payment Agreement. They will also deal with any assets such as your home and car.

Please speak to someone as I'm sure that once you have it'll be a weight off your mind and you'll be able to then work out the right thing for you and your family x

[MelanieGiles]

A quick telephone chat with an insolvency practitioner ought to provide you with all the advice and answers that you need to enable you to make the right decision for addressing your debts into the future.

[dpm]

I wanted to ask about this bit... "Someone can make an offer to buy your beneficial interest, and if you are in negative equity this can be done for a nominal fee of £1 plus £210 fees."

A couple of people have mentioned that, but Social services, when I purchased my Mum's home, insinuated that I had "disposed of assets", I'm therefore concerned that a Court would view it like that too?

Also who would you sell the £1 bit to? I don't have anyone I trust enough to do that, as that would give them the right to put us out and take over the house, wouldn't it?

(sorry I'm asking so much, I'm just struggling with it all).