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  • FIRST POST
    • Annalise1234
    • By Annalise1234 29th Sep 17, 3:49 PM
    • 8Posts
    • 1Thanks
    Annalise1234
    Help IVA failed is bankruptcy the only option
    • #1
    • 29th Sep 17, 3:49 PM
    Help IVA failed is bankruptcy the only option 29th Sep 17 at 3:49 PM
    Hi

    I have due to failed relationships and being a single mum got myself in to debt of nearly £50,000, I have been dealing with Step Change since February and have tried to set up an IVA - but IKANO and Barclays refused my offer (advised by step change) and wanted another £200 per month as to what we were offering and could afford and to extend the term to 7 years. Step change have advised I go bankrupt as I have no assets , at the moment I am paying each creditor £1 per month and have £80 to pay before going bankrupt. A colleague at work advised there must be other options and to post here for advice - I just don;t know what to do and what other options I have if even Step Change couldnt help. Any advice appreciated
Page 1
    • sourcrates
    • By sourcrates 29th Sep 17, 5:00 PM
    • 12,714 Posts
    • 12,052 Thanks
    sourcrates
    • #2
    • 29th Sep 17, 5:00 PM
    • #2
    • 29th Sep 17, 5:00 PM
    Hi,

    The only options are those provided by parliament, which on a 50k debt, and in your circumstances are :

    Bankruptcy.

    You most likely do not have enough disposable income for an IVA.

    A debt management plan is ruled out for the same reasons.

    A debt relief order only covers debts up to 20k.

    So realistically Bankruptcy is your only option yes.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
  • National Debtline
    • #3
    • 29th Sep 17, 5:23 PM
    • #3
    • 29th Sep 17, 5:23 PM
    Hi Annalise


    It's hard to argue with sourcrates' assessment based on what you have told us.


    Bankruptcy is there precisely so that you have an opportunity to start over when there is no other realistic way of satisfying your debts.


    Please note that the cost of applying is £680 - perhaps your reference to £80 was a typo. You ought to consider stopping any further payments to creditors altogether now, even those of £1, in order to be able to save that figure up.


    I'm sure Stepchange have provided you with information on the bankruptcy process and its effects already, but just in case here is our guide:


    https://www.nationaldebtline.org/EW/factsheets/Pages/bankruptcy/how-to-go-bankrupt.aspx


    Dennis
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • Money maker
    • By Money maker 30th Sep 17, 12:03 AM
    • 4,862 Posts
    • 11,096 Thanks
    Money maker
    • #4
    • 30th Sep 17, 12:03 AM
    • #4
    • 30th Sep 17, 12:03 AM
    #4 is spam, you want to go to a debt charity such as stepchange or national debtline, not some fee charging company looking to leech off the desperate.


    Do not come on MSE self-promoting your website, reported and you will soon be gone.
    Please do not quote spam as this enables it to 'live on' once the spam post is removed.

    If you quote me, don't forget the capital 'M'

    Declutterers of the world - unite!
    • Annalise1234
    • By Annalise1234 30th Sep 17, 9:25 AM
    • 8 Posts
    • 1 Thanks
    Annalise1234
    • #5
    • 30th Sep 17, 9:25 AM
    • #5
    • 30th Sep 17, 9:25 AM
    Thank you for your help, I guessed as much that I would have to go bankrupt but wanted to see if there was another way out. Yes I meant I have another £80 to pay before going bankrupt, how long will II have before my creditors take action, I have debt collection agencies writing to me and calling me I want t o try and file for bankruptcy before they take me to court. Again thank you for all your help.
    • ToxtethO'Grady
    • By ToxtethO'Grady 1st Oct 17, 6:45 PM
    • 80 Posts
    • 39 Thanks
    ToxtethO'Grady
    • #6
    • 1st Oct 17, 6:45 PM
    • #6
    • 1st Oct 17, 6:45 PM
    Hi Annalise

    If you are going bankrupt it does not matter if they take you to court as any CCJs would be included in the BR. You can ask the DCAs (debt collections agencies) to remove your number and only contact you by letter or email.
    As they are all unsecured debts and you have no assets having a CCJ would not complicate the BR. Your credit file will show the BR from the date it is done for up to 6 years. All debts should show as satisfied from that date and there's a good thread on here about cleaning up your credit history post BR.
    From what you have said your BR should be straight forward so I don't think you'd be receiving a CCJ claim form any time soon. A CCJ is a paper exercise and even if they do take you offer £1 a month until you can do the BR.

    Hope this helps.
    • Annalise1234
    • By Annalise1234 9th Oct 17, 4:19 PM
    • 8 Posts
    • 1 Thanks
    Annalise1234
    • #7
    • 9th Oct 17, 4:19 PM
    • #7
    • 9th Oct 17, 4:19 PM
    Hi All, I have contacted a different debt management company who have advised they think an I V A is possible and a meeting of the creditors booked for 20th October fingers crossed
    • Carrot007
    • By Carrot007 9th Oct 17, 4:21 PM
    • 758 Posts
    • 618 Thanks
    Carrot007
    • #8
    • 9th Oct 17, 4:21 PM
    • #8
    • 9th Oct 17, 4:21 PM
    Hi All, I have contacted a different debt management company who have advised they think an I V A is possible and a meeting of the creditors booked for 20th October fingers crossed
    Originally posted by Annalise1234
    Hopfully not one that charges, as they wil ltell you anything to get some money from you.
    • Annalise1234
    • By Annalise1234 9th Oct 17, 4:30 PM
    • 8 Posts
    • 1 Thanks
    Annalise1234
    • #9
    • 9th Oct 17, 4:30 PM
    • #9
    • 9th Oct 17, 4:30 PM
    Hi Carrot - no fee to me - I just hope it is accepted as I don't want to go bankrupt unless there is no other option, they did advise if I went bankrupt the OR are quite harsh with any extra cash I have and would take most of it from me
    • ToxtethO'Grady
    • By ToxtethO'Grady 9th Oct 17, 5:54 PM
    • 80 Posts
    • 39 Thanks
    ToxtethO'Grady
    Hi Annalise

    Without knowing your debt situation fully I think if Barclays/Ikano refused the first time they must be your majority creditors. 75% in monetary terms of your creditors have to agree and no IP can get them to agree if they don't want to. Have you changed your budget with the other company?

    There are always fees with an IVA, it's usually included in your first few payments or as a percentage of the monthly amount. Your proposal should outline what the fees are, have this other company put in writing that there are no fees if the creditors meeting doesn't go your way?
    • Annalise1234
    • By Annalise1234 10th Oct 17, 11:34 AM
    • 8 Posts
    • 1 Thanks
    Annalise1234
    Hi HSBC is the majority creditor, then Ikano , Barclays fair quite low in the debt, to be fair Step Change didn't take anything from me other than income and expenditure, no ID bank details where as my current company have done a thorough search on everything, my budget has changed since dealing with Stepchange. My current advisors have said that Step change are funded by the creditors which doesn't obviously help with the I V A being arranged. I only spoke with a basic advisor at Stepchange where as I have actually spoken with an OR regarding my situation. No charge to me if it fails.
    • StopIt
    • By StopIt 10th Oct 17, 11:57 AM
    • 1,449 Posts
    • 1,239 Thanks
    StopIt
    I honestly can't see the point of an IVA if you have no assets to protect.


    You'll be paying for 6 years rather than the maximum of 3 years of an IPA, both wreck your credit files and the IVA has a chance of failing, putting you back at square one with only bankruptcy as an option.


    Unless if you can't go bankrupt, rather than just not wanting to, I wouldn't be advising an IVA over it in your circumstances.
    • Annalise1234
    • By Annalise1234 10th Oct 17, 12:12 PM
    • 8 Posts
    • 1 Thanks
    Annalise1234
    Thank you the company that are advising me at the moment said that because I had been bankrupt before (10 years ago) due to bad relationships etc, pretty much the same as now it would be frowned upon and would be paying £600 per month extra rather than the £160 the IVA is proposing -as they don't take into consideration my living costs and would be very harsh - I just don't know what to do I'm so confused
    • StopIt
    • By StopIt 10th Oct 17, 12:18 PM
    • 1,449 Posts
    • 1,239 Thanks
    StopIt
    Thank you the company that are advising me at the moment said that because I had been bankrupt before (10 years ago) due to bad relationships etc, pretty much the same as now it would be frowned upon and would be paying £600 per month extra rather than the £160 the IVA is proposing -as they don't take into consideration my living costs and would be very harsh - I just don't know what to do I'm so confused
    Originally posted by Annalise1234

    You're being led down the garden path by someone who wants their IVA fees.


    Get an appointment with the CAB if they have debt advisors at your local branch, or call the National Debtline and get impartial advice.


    Of course the OR will take into account your living costs, it's all part of the SFS and will have set allowances for everything from food, fuel, to childcare costs etc.


    Being a previous bankrupt means that you may be at risk of a BRU, but unless if you're planning to be a company director, that's still not the end of the world.


    Honestly, seek help from someone who doesn't stand to gain from you.
    • Annalise1234
    • By Annalise1234 10th Oct 17, 12:27 PM
    • 8 Posts
    • 1 Thanks
    Annalise1234
    Thank you I will look into this - I just wished someone could sort it all out I work from 8am until 6pm , every other Saturday and have two little boys ...so stressed and tired and confused
    • Tarambor
    • By Tarambor 10th Oct 17, 12:57 PM
    • 1,761 Posts
    • 1,208 Thanks
    Tarambor
    Hi Carrot - no fee to me - I just hope it is accepted as I don't want to go bankrupt unless there is no other option, they did advise if I went bankrupt the OR are quite harsh with any extra cash I have and would take most of it from me
    Originally posted by Annalise1234
    Please please please declare bankrupt. It is by far your best option in your circumstances. All of the phone calls and the debts will go away. Your credit history will be repaired far sooner than any IVA or other agreement that will be put in place. You will have more money to live on than if you sign up to anything that you're being sold as a solution by these predatory companies.

    Whilst it will make life difficult, to be honest given the state your credit record is in now it won't be much different to how it is now but you'll no longer have the level of stress you currently have now and it will be like the weight of the world has been lifted off your shoulder.

    Sorting it out takes little time. You can download the papers, you need a day off to hand them in, a day off for the bankruptcy hearing and a day off for the OR interview if there's one at all.
    Last edited by Tarambor; 10-10-2017 at 12:59 PM.
    • luvchocolate
    • By luvchocolate 10th Oct 17, 1:18 PM
    • 1,486 Posts
    • 1,337 Thanks
    luvchocolate
    Hi you can complete the papers online now and do not go to court.
    You will get a telephone call within a few days to discuss your bank account etc.
    You will then have either a telephone interview or face to face within a few weeks.
    Do not be worried that you have been in this position before.
    Please contact National debt line or your local C.A.B office.
    I am concerned the route you are going down is not the right one for you.
    • Annalise1234
    • By Annalise1234 11th Oct 17, 8:47 AM
    • 8 Posts
    • 1 Thanks
    Annalise1234
    Thank you all, I just don't understand why I would be told if I was to go bankrupt I would be paying £600 for three years (of which I haven't got) - am I allowed to mention the company name to you to see if anyone has had dealings? I will contact the National Debt Line - Thanks for all your advice all I want is to make the right decision
    • luvchocolate
    • By luvchocolate 11th Oct 17, 9:03 AM
    • 1,486 Posts
    • 1,337 Thanks
    luvchocolate
    There are companies out there that thrive on your sistuation and must be avoided.
    Always use the debt free charities we mention on here and read the I.S website and the stickies on this board.
    This will get sorted, just stay focused and use us for moral support also.
    Please let us know how you get on.
    • StopIt
    • By StopIt 11th Oct 17, 9:19 AM
    • 1,449 Posts
    • 1,239 Thanks
    StopIt
    Thank you all, I just don't understand why I would be told if I was to go bankrupt I would be paying £600 for three years (of which I haven't got) - am I allowed to mention the company name to you to see if anyone has had dealings? I will contact the National Debt Line - Thanks for all your advice all I want is to make the right decision
    Originally posted by Annalise1234

    Your OR can not and will not charge a £600 IPA if you haven't got it to pay.


    If you post an SOA, it will help. There are people with intimate knowledge of the process and they can tell you if you'd even be given an IPA, and if so, how much, to a point.


    As stated before, you're being "advised" by someone who wants their cut of the IVA fees and are serving themselves, not you. Do not talk to this company again and get in touch with the National Debt Line/CAB debt team ASAP.
    Last edited by StopIt; 11-10-2017 at 9:23 AM.
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