Help!!!

ogglydoggly

Hi,

This is our (Husband and I) first time posting on here. We have decided to get our heads out of the sand and face our debts head on. I am a stay at home mum with 2 boys (1 and 3) and my husband has a reasonably paid job. one way or another we have an unsecured debt of just over £100.000 :eek:

This is due to a number of factors including a wedding and me giving up work to be with the children. We also borrowed a lot when interest was low thinking we could juggle between cards but have not been offered as many deals as we thought.

We think the only way forward is an IVA or Bankruptcy (Bankruptcy is the last option) only we have no idea where to start.

Some of our debts are in my name, some in my husbands. Will an IVA cover all debts as my husbands income is our only income?

After rent we have about £300 left (not including debt payments) will this be enough to get an IVA

Have plenty more questions but this a good start. Any help will be greatly appreciated.

Thank you

Here is our SOA:

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 1800
Partners monthly income after tax....... 0
Benefits................................ 180
Other income............................ 0
Total monthly income.................... 1980
Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 650
Management charge (leasehold property).. 0
Council tax............................. 108
Electricity............................. 30
Gas..................................... 30
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 10
Mobile phone............................ 50
TV Licence.............................. 12
Satellite/Cable TV...................... 30
Internet Services....................... 15
Groceries etc. ......................... 300
Clothing................................ 30
Petrol/diesel........................... 300
Road tax................................ 30
Car Insurance........................... 50
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 60
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1760

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 8000
Other assets............................ 1000
Total Assets............................ 9000

No Secured Debt
Unsecured Debts
Description....................Debt......Monthly...APR
Abbey .........................15000.....223.......0
Marks and spencer .............1840......46........0
American Express...............2628......66........0
Egg Loan.......................16000.....408.......0
Egg Loan.......................12000.....350.......0
Abbey Loan.....................17000.....333.......0
Tesco..........................4000......90........0
Mint...........................4166......93........0
Marbles........................5469......136.......0
Barclaycard....................4802......108.......0
Natwest........................76........5.........0
Halifax........................5877......107.......0
Santander......................12101.....272.......0
Total unsecured debts..........100959....2237......-

Monthly Budget Summary
Total monthly income.................... 1,980
Expenses (including secured debts)...... 1,760
Available for debt repayments........... 220
Monthly UNsecured debt repayments....... 2,237
Amount short for making debt repayments. -2,017
Personal Balance Sheet Summary
Total assets (things you own)........... 9,000
Total Secured debt...................... -0
Total Unsecured debt.................... -100,959
Net Assets.............................. -91,959
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

MIVAA

Hi ogglydoggly.

Welcome to the MSE forum, and well done for plucking up the courage to post. I know it can be very daunting.

The two principle reasons for choosing an IVA over bankruptcy would be to either protect an asset, such as equity in your home, or to protect a professional's income stream, which may be lost in bankruptcy.

You obviously don't need to worry about the first of these, because you rent, but what does your husband do for a living?

ogglydoggly

My Husbands job would be safe but wouldn't bankruptcy allow assets to be taken (such as cars, electricals etc) ?

MIVAA

Hi ogglydoggly

There are certain assets that would be lost in bankruptcy, and cars above £2,000 are generally under threat, but even if you were made to sell your cars you would be allowed to replace them for more modestly priced ones if they are needed for your work.

Read this useful article, it may help you appreciate the main differences between Bankruptcy and IVAs

IVA vs Bankruptcy - The facts you need to know.

You may find the IVA too expensive for you because your creditors would be looking for around £550 per month in voluntary contributions, whereas the Official Receiver would only be looking to take a proportion of what you could afford with no concern for creditor's minimum requirements.

I hope this helps.

MIVAA

RAS

Oggly

Please can you talk to one of the debt charities. it may be that a DMP is a better option than an IVA http://www.moneysavingexpert.com/loans/debt-help-plan#help..
And check that you are getting your full benefits on https://www.entitledto.com

And if you do an IVA, arrange it through a debt charity as they are more likely to consider all the options.