help with IVA or Bankruptcy please

Toon_Dave · 18 March 2008 at 11:37AM

Hi guys,

1st time poster here so hope some one can help or offer advice.

i have posted same thread on the DFW link and have been advised to come t here for some more advice.

i will give some life history as to why im in the mess i am now. Approximately 1 year ago i split with my longterm GF, together 8 1/2 years, We split due to her lying and deceit with hiding debts etc. i actually found all the debts and un opened letters by mistake. there were hundreds of letters including ccj's and mortgage arrears, loan arrears and things i didnt know excisted as my ex had restarted credit cards etc to try and clear the debts, which obviously didnt work as i wouldnt be in this mess now. Anyway to cut a long story short i have been dealing with the CAB for the past year in newcastle who have been fantastic to be honest with help and advice and also creating a DMP with creditors. My mortgage is upto date now, no arrears which is great.

i have a joint mortgage and joint loan with the Ex which i have kept joint so that she has to accept responsibility if it all goes pear shaped, which is where i see it going now.

i have been paying for things for the past year with a real struggle and now am finding if more difficult as a new debt has come to light which is an unsecured loan which the company have got a charging order agaisnt the property, this debt is £35,000. which is why i am writing on here as i cant afford to repay this newer debt along with my other excisting commitments. i have contacted an IP company through the CAB who are collecting paperwork from me this morning to see if an IVA would be suitable for me.

i will post this and attach my SOA next. Thanks. Dave.

Toon_Dave · 18 March 2008 at 11:39AM

here goes - SOA

Monthly salary - £1560

monthly outgoings - priority

Mortgage - £460 Balance £61,000
Secured loan - £535 Balance £21,000
council tax - £73 Balance£728
water - £31 Balance £217
Electric - £80 Pre-payment key
Service charge £50
telephone - £11
tv license - £14 Balance £140
life insurance -£10
food £100
CCJ - C/C £85 Balance £3,400.

Total - £1449.00
available to creditors - £111

Monthly outgoings - non-priority debts

goldfish C/C £13pm Balance £6,100
Lloyds TSB c/c £66pm Balance £2,800 - did not accept smaller amount pm
Sky C/C £10pm Balance £3,800
HFC Bank S/C £20pm Balance £240
HFC Bank £10pm Balance £60
Northern Rock £0pm Balance £ 35,000.

Per month - £119

Total non-priority debts - £ 48,000.

Total Debt as of march 2008 - £134,485.

Any help or advice would be greatfully received on best options.

Dave.

tigerfeet2006 · 18 March 2008 at 12:47PM

Hi Dave and welcome to the board.

The first thing you need to do is to take some proffesional advice from one of the debt agencies (numbers and links in my sig.)

If after discussion with them bankruprtcy is suggested we can give you all the support and advice you need.

I notice in your SOA you have no travel costs, hairdressing, holiday, personal costs or house insurance.

Toon_Dave · 18 March 2008 at 3:10PM

tigerfeet2006 wrote: »

Hi Dave and welcome to the board.

The first thing you need to do is to take some proffesional advice from one of the debt agencies (numbers and links in my sig.)

If after discussion with them bankruprtcy is suggested we can give you all the support and advice you need.

I notice in your SOA you have no travel costs, hairdressing, holiday, personal costs or house insurance.

hi Tigerfeet,

thanks for the welcome to the board.

i have contact CAB and been dealing with them for the past year which has helped alot to put off creditors and to manage debts. i have spoken to the CCCS today and filled out the forms online, the solution from them was bankruptcy so i have to contact them tm to discuss my individual situation.

i have also been in touch with an IP recommended by the CAB to see if that would be an option, the nice lady is going to give me a phone interview on thursday to discuss my situation and options then.

with regards to the SOA and missing areas these are as follows - i have company car so costs already ducted in tax from my pay. i dont have contents insurance but buildings insurance is paid as paid of my lease hold service contract. Hairdressing - not much left now to cut but what i have a shave short my self.

all personal costs i have included in living expenses etc with food, laundry and personel hygienne stuff.

i think i have done all i can to stave off the debts and its just the long term aspect of paying using a DMP and then possibly still having to go BR or IVA.

any other advice from anyone would be greatly received. Dave.

fermi · 18 March 2008 at 3:17PM

Hi Dave.

Welcome to the board.

I should just mention regarding SOA's, that there tends to be a very different approach on this board compared to debt free Wanabee.

The reason for that is that in bankruptcy it's not a case of "cutting back", but instead you need to make sure that all and every reasonable living expense is covered with a little slack as well if possible. If (and a big if) you opt for bankruptcy, then you wont have access to credit for a significant time (years), so you wont be able to use credit to bridge any "gaps".

So the main focus with an SOA/I&E to submit to the Official Receiver is to make sure you aren't forgetting or underestimating anything.

Toon_Dave · 18 March 2008 at 3:52PM

thanks Fermi,

Should i seperate the SOA for all living expenses food seperate from clothing etc?

would this be more in my favour if i need to go the BR route?

Thanks for advice.

fermi · 18 March 2008 at 3:57PM

Toon_Dave wrote: »

Should i seperate the SOA for all living expenses food seperate from clothing etc?

would this be more in my favour if i need to go the BR route?

Yes, because the Official Receiver has their own way of categorising expenditure. A lot of the regular posters on this board are familiar with how this works, but it's not something to worry greatly about until you've come to a firm decision on whether bankruptcy is the way to go.

Toon_Dave · 18 March 2008 at 4:08PM

thanks fermi, i guess when if and when i fill in my pertition i will have plenty of further questions and im sure you guys will have the answers for me.

appreciate all the help and advice from everyone so far. it is starting to make me feel a little bit clearer.

it is also making me feel that my situation is not a unique one and nice to know others have come through the same experiences and are here to tell the tale.

Toon_Dave · 18 March 2008 at 4:55PM

just a quick note to say i have plucked up the courage to speak to my local county court and spoke to a very nice lady in the insolvency department. She is going to send me out some forms to fill in if i decide to go for bankruptcy.

i thought i would at least get the forms this week. The fee is £485 total so i will need to save and will need to wait until end of the month till i get paid anyway before i can go further. By then i will have decided what i am doing and so if i am to pay creditors for another month or keep the money for my self.

Do i need to keep paying the secured debts as well as unsecured debts in the mean time if i go for bankruptcy??

my mortgage is upto date at present but i have negative equity in the house sale so no point selling.

Toon_Dave · 18 March 2008 at 5:35PM

hi, sorry i have another question regarding bankruptcy.

if i get declared bankrupt, what do i pay back during the terms of the bankruptcy? is it a percentage of what is owed? or a fixed amount?

Can any body help? i've read some of the other posts and no mention so not sure what the situation is.

Cheers.

Dave.

RAS · 18 March 2008 at 5:55PM

Hi Dave

Suspect lots of people are getting supper.

Here is a bit of info on IPAs nicked from fermi. If your excess income during the period before your discharge is £100 or more, then you have to make IPA payments for three years towards your debts, this being a percentage of your excess income.

"The Official Receiver can ask you to pay towards your former debts for up to 3 years via an Income Payment Agreement.

See the link: IPO / IPA (Income Payment Orders and Income Payment Agreements)"

This is why it is important for people who are going BR (and DMPs and IVAs) to ensure that the SOA they put together is really really realistic anc covers their financial needs, with a bit of slack for the unexpected. You can get a lot of help here putting it together if you decide that is what you want to do.

You can ask for it to be reviewed if your circumstances change, but it helps to get it right in the first instance.

help with IVA or Bankruptcy please

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