What on earth shall we do ?

Mike_St_Helens · 15 June 2006 at 2:07PM

Hi,

First of all thanks for reading this.

My Partner and I are in a very bad and unusual situation and just dont know what to do. Ill make the story as short as I can, It all started with a few property sales and purchases, the purchase of a pub lease from a cowboy horrid brewery and a business that went bust after us pumping thousands and thousands into it. At the end of this both my partner and I owe around £40k each.

We knew things were bad and went to.... Bains and Ernst !! last year and they said an IVA is the best solution for us. We went this way, as it was the time we were loosing the business they said dont pay creditors, get the business sorted and let us know when you are back in work. We then got full time good jobs and caklled them back, to the tune of.. we are not interested in you now, go elsewhare for help !!. So we did this... we called Payplan who have been very nice and effic iant and they said go for a DMP... so we are currently in the process of organising this... but what im confused about is why we still cant get an IVA, they say the return to creditors isnt great enough.

We own our home, mortgaged to the max at £80k, income joint approx £31k, joint debt £80k. cant go bankrupt as I work for the home office and it isnt allowed and my partner works for the tax office so cant there either !!So are we stuck with a DMP for the rest of our lives, we will never be able to get a remortgage, move get a bank account etc etc etc ever again !! just in a rut as what we should and shouldnt be doing... Any advise or help would be gratley recieved....

Mike

CLAPTON · 15 June 2006 at 2:28PM

how much equity is in the house?

how much do you have each month after mortgage and essential expenditure that can you used to pay off the debts

are you absolutely sure that your emplyment prevents you from bankruptcy....have you checked confidentially with the union or HR ?

Mike_St_Helens · 15 June 2006 at 2:31PM

Hi, Thanks for reading !

Yeah, it is in both of our contracts of employment that we are not allowed to be bankrupt. There is about 5-6k in equity but dont forget Bains & Ernst told us no to pay creditors anything, and they havent been paid a penny for over 6 months, Payplan are now dealing with them and we paid our 1st payment of £340 last month towards the DMP.

MIke

CLAPTON · 15 June 2006 at 3:09PM

payplan presumably advised you that IVA wouldn't stand much change of success with your creditors as payments of £340 a month over 5 years (total of £20,000 less IP fees) and with virtually no equity in the house, wasn't sufficiently attractive to your creditors.

If you can't go bankrupt then your options are pretty limited.....when your income increases significantly, you might be considered for an IVA or maybe one of you might consider getting a new job where bankruptcy isn't an issue and that one go bankrupt. This would at least get rid of half the debts and allow you to concentrate of the remaining.

Mike_St_Helens · 15 June 2006 at 3:14PM

We have only just started new jobs and they are good stable jobs so we dont want to rock the boat there.

My main worry is that we are stuck with a dmp forever, we are only young and will now be stuck here in this situation forever now.. cant move, change bank accounts, remorgage..bla bla.... Just feeling crap about it all really.

By the way ! Never buy a pub !!!!

MD

Toto · 15 June 2006 at 3:46PM

Could one of you not get a part time evening job as well to boost your income enough to get the IVA accepted? I can't think you can be too far off to be honest. You really need a minimum of 25% I think to get your creditors to agree to the IVA despite what all of the cowboy companies will tell you. If you can get 30% you will almost certainly get accepted. Perhaps that might be an option. If both of you did an individual IVA then really you would only be looking at one or two evenings a week extra work behind a bar or something.

Just an idea.

Mike_St_Helens · 15 June 2006 at 3:49PM

We both work 24 shift patterns so another job isnt really practical and my job has 12 hour shifts, the last thing I want to do after working 12 hours is go back to work... and as for a bar job, i never ever want to set foot behind a bar again after my pub ownership expeerience !!

With regard to the 25% thing though... can you tell me more... and who would you trust to go to to arrange an IVA? Do you think that this is the best option ?

Thanks

MD

Toto · 15 June 2006 at 5:16PM

If I were faced with your situation (and please remember I am also stuck in a debt situation) I would be thinking IVA if I couldn't do bankruptcy. DMP are really good and I think for most they are the answer but in your case the repayment period is an awfully long time and your options are limited.

I would if possible try Payplan again or maybe try debtline or the CCCS. any of these can help get an IVA sorted. Post your SOA (look at this link http://forums.moneysavingexpert.com/showthread.html?t=107280 ) and we will see if we can help you reduce your monthly outgoings. I don't honestly think you are too far away from being accepted for an IVA. I do know that IVAs are regularly accepted on 30% of the total and some on 25%. Lets have a look at your SOA first and see if we can make enough savings for you to increase your amount.

Mike_St_Helens · 16 June 2006 at 9:14AM

SOA : ( CT Is Council tax arrears because of that damn pub !)

£396.00 Mortgage
£121.25 Car
£26.62 Water
£25.00 Gas
£25.00 Electric
£33.45 car Ins
£23.00 Home Ins
£50.00 Lpool CT
£40.00 Wigan CT
£70.00 St H CT
£320.00 Payplan
£50.00 Telewest
£10.00 TV Licence
£7.00 Account Fee
£20.00 Mobiles
£150.00 Petrol and Travel

Income approx £2k per month

lynzpower · 16 June 2006 at 9:22AM

Hi there

You need to add in what you spend on food etc

INcidentally why are you paying 3 lots of CT, i presume your house is in one authority, the pub in the other, so where does the 3rd one come in

Whats telewest @ £50 seems a lot

Mike_St_Helens · 16 June 2006 at 9:30AM

Thanks Lynz

Yeah, I live in ST H so thats current, The pub was in Wigan so thats the £40 and my previous add when I had my pub and couldnt afford to eat even was Lpool... thats the 3 ! there are only 12 months on each of them though.

£50 telewest is the broadband, phone and TV all in one.

Food is about £50 a week or so i guess

MD

What on earth shall we do ?

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