token payment or belly up

kickingkay

ok advice needed before i end it all, ive just spoken to cccs and he feels that i should go bankrupt help i dont want to offer £1. a month as they will keep adding the % and im paying a pound for them to add on has anyone else had this advice,and are going against it and setting up their own dmp because i worked out if i cut back on luxuries i can afford £150. to pay towards debts im just so upset, i could lose the house i just donmt know where to go now

rchddap1

Well you've come to the right place. If you post more details about your debts (APR, min payment, amount owing) and your full incomings and outgoings people here will be better placed to advise you.

Don't worry, someone will be along soon to give you more advice. And there are quite a few people here who have gone through the bankruptcy process and have come out the other side....and feel fantastic.

Apple_2

kickingkay

My O/H was advised to go bankrupt by the CAB and NatDebtline - ' no messing, that's you're only sensible option'. He didn't, mostly because a bankrupcy would mean he couldn't work in the field he's currently in. Plus he got a contract which meant with a bit of luck, affordable !!!!!!'s and a following wind he could possibly work through it. Seven months later, it's better than it was but he's still not debt free. He had no house or assets - I notice you have a house so get lots of good advice before you decide, the house means you've got something to lose. Anyway, I've kind of done his DMP for him ( which is more negotiate low !!!!!!'s than monthly payments ) so it is possible to DIY. BUT it's been a series of ups and downs, often you feel like you're banging your head against a brick wall, and some of these debt collection departments are awful to deal with. DIYing it isn't a pleasant thing - but it's possible.

Depends on your individual circumstances, but be careful cos of the house.

Best of Luck.

1313

We also need to know about the property; Mortgage, Value, equity etc.

I bet the odds are stacked in your favour not to loose the house. Sure its a worry, but give us all the info and you may just find there is a good solution for you.

kickingkay

hi ive actually posted before with all debts etc but
ill sumserize for those not aware
i owe 77,000.00 all unsecured all loans and cards etc, now 34,000.00 is in o/h name and the rest is in my name
we have 3 children 12yrs 8 yrs and 8 months,
we both work o/h earns approx 1200. pcm sometimes more depending on ot
i earn 600 ish pcm
child benifit 159. pcm
we are not entitiled to wftc because ive received an over payment so its been stopped
after outgoings which i will list
mort, £585.
h/c insur £33.
tax £96.
water £26.
sky 42.50 will be cancelled in 5 weeks
phone (mobile at present (30.)
home phone broadband etc £47.
tv licence £31. (1/4)
elec 25 (already changed to cheapest)
gas 40 (already changed to cheapest)
axa life cover o/h £36.
axa life cover me £54. plan to defer or cancel these
child care costs £396. pcm
food nappies etc £360
fuel £30.
tax car £10
car insur £30.

total =1829. incomings total= 2001. then with cutbacks on mentioned above saving of 132. plus will be trying to get rid of mobil phone
i just think between the two of us we can make a pro rata payment instead of this token £1. a month
our house has £90,000 owing on it and around 30k equity however im in a family run business (no finacial gain) and i can not be made bancrupt due to this business being operatable im a CPC licence holder and if im bancrupt it will be revoked
so please tell me i can do this because i feel so low i want to repay my debt its my fault (due to gambling and stress which stemed from my father diagnosis of cancer and dying just this last month) im at my lowest ebb my husband has been nothing but supportive but i feel guilt everytime i look at him that our relationship is now starting to suffer
i just want to be pro active and get through this

BrokeBrokeBroke

kickingkay wrote:

hi ive actually posted before with all debts etc but
ill sumserize for those not aware
i owe 77,000.00 all unsecured all loans and cards etc, now 34,000.00 is in o/h name and the rest is in my name
we have 3 children 12yrs 8 yrs and 8 months,
we both work o/h earns approx 1200. pcm sometimes more depending on ot
i earn 600 ish pcm
child benifit 159. pcm
we are not entitiled to wftc because ive received an over payment so its been stopped
after outgoings which i will list
mort, £585.
h/c insur £33.
tax £96.
water £26.
sky 42.50 will be cancelled in 5 weeks
phone (mobile at present (30.)
home phone broadband etc £47.
tv licence £31. (1/4)
elec 25 (already changed to cheapest)
gas 40 (already changed to cheapest)
axa life cover o/h £36.
axa life cover me £54. plan to defer or cancel these
child care costs £396. pcm
food nappies etc £360
fuel £30.
tax car £10
car insur £30.

total =1829. incomings total= 2001. then with cutbacks on mentioned above saving of 132. plus will be trying to get rid of mobil phone
i just think between the two of us we can make a pro rata payment instead of this token £1. a month
our house has £90,000 owing on it and around 30k equity however im in a family run business (no finacial gain) and i can not be made bancrupt due to this business being operatable im a CPC licence holder and if im bancrupt it will be revoked
so please tell me i can do this because i feel so low i want to repay my debt its my fault (due to gambling and stress which stemed from my father diagnosis of cancer and dying just this last month) im at my lowest ebb my husband has been nothing but supportive but i feel guilt everytime i look at him that our relationship is now starting to suffer
i just want to be pro active and get through this

As far as I know you can't go bankrupt if the debts are gambling debts - not sure whether this is correct or not,just something I heard. The people on this board will help you, I'm sure! They are excellent and have wonderful advice.

crystal_clear

BrokeBrokeBroke wrote:

As far as I know you can't go bankrupt if the debts are gambling debts - not sure whether this is correct or not,just something I heard. The people on this board will help you, I'm sure! They are excellent and have wonderful advice.

Sorry BrokeBrokeBroke you are wrong you can go Bankrupt if debts are from gambling but it adds a lot more complications to the equation as this will be found out by the OR and then that can be classed as being wreckless and extentions over the new average 12 month or less discharge rules will be applied and you can still be held accountable for years in severe cases and attachments to earnings can be applied also.

If I were the OP I would try the DMP route with a secure figure that can be guaranteed fully and as both working if nothing else it will buy them time to fully explore all avenues and the outcomes before taking the last resort of bankruptcy as the home is a big risk and job.

Xbigman

I read your comment about 'working in a family run business for no financial gain' to mean you are unpaid. If this is the case then you need to change that. Either they pay you or you leave and get a paid job, its that simple. You might not like that but the reality is that your house is in danger and this is the way out.

Bankruptcy wise, CCCS and other DMP arrangers do need a minimum amount of free income to work with (I think from memory CCCS is 200 and payplan is 300) and if you have less they often reccomend bankruptcy. Go to the local CAB and talk to them. Tell them you want to set up a DMP and get their help. If they mention bankruptcy tell them you have considered this but still want a DMP. They should help you and even if you go the DIY route the fact you have a CAB ref number will help.
Regards



X

ffs

My understanding is that the main purpose of an IVA is that it allows people to continue working in their profession in circumstances where they would be unable to do so if they were made bankrupt.

However IVAs are much less flexible than DMPs, and have considerable set up costs. If neither CCCS or Payplan are able to take on your case you still have the option to try to set up a DIY DMP, which is what my ex did.

kickingkay

thanks all, i didnt get much sleep last night, so im very low and just as stressed!
AS FOR FAMILY BUSINESS my dad bought me a car as return payment for getting the licence only a 2nd hand one but it was payment all the same he doesnt make enough money to pay me wages so that is a closed route, i do earn my own wage as a classroom assistant
im absolutley not prepaired to give up my home i will work the streets if i have to :eek:
i do appreciate everyones advice as for cccs he just kept adding on stuff we would need to live on 60 quid a month on clothes ive never spent that ever! i know that if i can write them all again i can get a figure for each pro rata based on what i have left each month this is just for another 36 months when harvey will start school then i can pay his childcare cost off my debts too i know the future is bleak but i do want to pay off what i owe i dont want to run and hide nor do i want to lie down and die (although there has been times recentley)
i know they wont be happy but what im asking is this if im paying all i can afford each month shared between the creditors surely that will work in my favour moreso than a 1. amonth? i mean if i was to end up in court thaen the judge would see im doing mu best to pay off everything and in the case they do go for bancruptcy they will only get a tiny margin of what they are owed
i m just asking for those who are paying it back this way on their own how they are finding it
ta all klare xxx

eml_3

I would only consider offering a creditor £1.00 per month as a token offer if the client really couldn't afford anymore towards the debts. If you can afford more, you need to make pro rata offers to each of your creditors, dividing up your surplus income equitably between them. To do this, you need to draw up a financial statement which the CAB/Independent Advice Centre can help you with. It is important to be realistic about what your expenses are and make sure you can afford what you offer every month and not just for the first few months.

An Advice centre can also help make sure you are claiming everything you are entitled to.

Good luck, hope this helps.