Not sure which debt solution is right for me

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Post by ian480 » Tue Sep 10, 2019 11:26 am
I've spent the last 10-15 years struggling with credit card debt, and have finally decided that enough is enough. I've got about £33k on credit cards, and £9.5k on a personal loan, all of which are in my name.

Our house is mortgaged in both mine and my wife's name, value approx £185-190, mortgage is about £135k. Our mortgage is a fixed rate due to expire next June 2020. I'm an IT contractor running my own LTD company, with myself & wife taking home a salary and dividends.

My understanding is that with bankruptcy, although its quicker, I will have to sell the house, and I cannot be director of my own LTD company anymore? I don't have any other assets as such, my wife's car is leased, and the other car is in my daughters name. I got rid of my leased car a couple of months ago to reduce monthly payments.

I've filled in the Debt Remedy form on the Step Change website, but it is proposing Bankruptcy / DMP & IVA. I'm not sure which way to go.

I've also contacted PayPlan, filled in their form, and was meant to be getting a phone call today to talk about options, but having read some online reviews of PayPlan, I'm now not sure they are for me.


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Post by kallis3 » Tue Sep 10, 2019 11:37 am
Have a chat with a few firms before making a final decision. With an IVA you will keep your house, with BR you probably will lose it.
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.
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Post by Foggy » Tue Sep 10, 2019 11:58 am
As a director of a company I would shy clear of the charity firms ( Stepchange and Payplan) as well as the other 'IVA factories' -- all of these have a tendency to treat you as an anonymous grain of sand on a very large beach and any deviation from the norm might not be adequately dealt with.

In a nutshell -- with BR, if the creditors can see a good return from the house sale, it will be sold. There is an outside chance that you will keep it, but always go into BR with the expectation that you will not --- all of this depends on the amount that can be released ( equity). In BR, you do not really know what is going to happen until the process is underway.
An IVA is more protective of house ownership, but will expect you to examine equity release, by way of a remortgage or, possible ( in newer terms and conditions) secured loan. Inability to do either will result in the IVA being extended by 12 months. You will know what is what up front, before you sign on the dotted line, but make sure you understand it.
A DMP is only really suitable for smaller debts, high payments or to provide a short term breathing space and you will be making p[ayments for as long as it takes to pay the full debt. Interest might not be stopped and creditors can back out at any time and pursue the debt. With willing creditors it could go on for decades !
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014

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Post by Lisa Thomas » Wed Sep 11, 2019 8:36 am
You won't necessarily lost the house on Bankruptcy. Is your wife or any other third parties able to raise funds to make an offer to buy out your interest from the Trustee?
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: ... Z5k9ZcC2MA 01752 786800
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