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BR or IVA help

Hey everyone, originally posted on the debt free wannabe, but the amount of post that go on there are crazy,

IVA or BR
Hey,
Just after a bit of advice, I am currently on a DMP through payplan, have been since feb 08, although the DMP is a good idea I don't think it has really done me any good as in not stopped interest on some accounts and the others gone to dca's.
My total debt totals around 42K - 19 k Unsec Loan, 20 K C/C's and 2500 O/D.

I have a flat which i currently rent out and am living with my parents, the flat has a mortgage of around 170K but is prob only worth about 130K now. There have been plenty of repo's and auctions there already which along with the current climate has pushed the value down - I would like to keep the flat if I can.

In feb I was made redunadent and only found work in Nov, so was off for quite a long time but I just about managed to keep everything upto date including the DMP through using my savings, although they are now long gone,

Asset wise, I have a car on HP, but this also has negative equity I think I owe about 10K on this, would I be able to keep this?

So looking at my options what would you guys recommend, I need to get away from the DMP as although it reduced my payments it really is not helping, and would like a positive start to 09.

Below is my attempt at the SOA, I have taken the figures pretty much from my current DMP, its right give or take £100

Monthly Budget Summary Amount(£)
Total monthly income 1,775
Monthly expenses (incl. secured loans) 1,468
Available for debt repayments 307
UNsecured debt repayments 322
Amount short for making debt repayments -15
Personal Balance Sheet Summary Amount(£)
Total Assets (things you own) 139,500
Total Secured Debt -171,000
Total Unsecured Debt -43,462
Net Assets
-74,962
Income, Expense, Debt & Asset Details

Income Amount(£)
Monthly income after tax 1100
Partners monthly income 0
Benefits 0
Other income 675
Total monthly income 1775
Expenses
Amount(£)
Mortgage 500
Secured loan payments 0
Rent 150
Management charge (leasehold property) 101
Council tax 0
Electricity 0
Gas 0
Oil 0
Water Rates 0
Telephone (land line) 0
Mobile phone 35
TV Licence 0
Satellite/Cable TV 0
Internet services 0
Groceries etc. 160
Clothing 20
Petrol/diesel 100
Road tax 18
Car Insurance 45
Car maintenance (including MOT) 20
Car Parking 0
Other travel 0
Childcare/nursery 0
Other child related expenses 0
Medical (prescriptions, dentists, opticians etc.) 15
Pet Insurance/Vet bills 0
Buildings Insurance 0
Contents Insurance 0
Life Assurance 11
Other Insurance 0
Presents (birthday, christmas etc.) 0
Haircuts 8
Entertainment 0
Holiday 30
Emergency Fund 0
HP Car 255
Total monthly expenses
1468
Secured Debt Description
Debt(£) Monthly(£) APR(%)
Mortgage 171000 (500) 0
Secured Debt totals
171000 - -

Unsecured Debt Description
Debt(£) Monthly(£) APR(%)
Loan 19500 142 0
CC 7461 57 0
CC2 6629 50 0
CC5 230 2 0
OD3 1500 11 0
OD2 450 3 0
od1 575 4 0
CC4 3000 22 0
CC3 4117 31 0
Unsecured Debt totals
43462 322 -
Asset Description Value (£)
Cash 0
House Value (Gross) 130000
Shares and bonds 0
Car(s) 9500
Other assets (e.g. endowments, jewellery etc) 0
Total Assets 139500

Thanks

Comments

  • peachyprice
    peachyprice Posts: 22,346 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Hi lol,
    Is there any chance that if you didn't have any debts to pay you'd be able to afford to live in your flat? The OR is only obliged to let you keep a property if it is your main residence, if you don't actually live there you may lose it regardless of negative equity.
    Accept your past without regret, handle your present with confidence and face your future without fear
  • lol321
    lol321 Posts: 23 Forumite
    Hi peachy, would probably be able to if the mortgage rates stay low as I am on a tracker til feb 2010 and didn't have to pay for my car, infact it is my main aim to move back in - living on your own then moving back with the folks isn't that great.
  • deedee_3
    deedee_3 Posts: 891 Forumite
    lol321 wrote: »
    Hey everyone, originally posted on the debt free wannabe, but the amount of post that go on there are crazy,

    IVA or BR
    Hey,
    Just after a bit of advice, I am currently on a DMP through payplan, have been since feb 08, although the DMP is a good idea I don't think it has really done me any good as in not stopped interest on some accounts and the others gone to dca's.
    My total debt totals around 42K - 19 k Unsec Loan, 20 K C/C's and 2500 O/D.
    Please ring one of the debt charities in the Bankruptcy Help sticky at the top of the board. Only they can advise Bankruptcy or IVA (if bankruptcy is an option then you will need to do this as the the judge may delay your petition until you do.) We will help and support you through the process if it is an option.

    I have a flat which i currently rent out and am living with my parents, the flat has a mortgage of around 170K but is prob only worth about 130K now. There have been plenty of repo's and auctions there already which along with the current climate has pushed the value down - I would like to keep the flat if I can. If you want to keep the flat it will have to be your main residence. You won't be able to rent it out and live somewhere else.

    In feb I was made redunadent and only found work in Nov, so was off for quite a long time but I just about managed to keep everything upto date including the DMP through using my savings, although they are now long gone,

    Asset wise, I have a car on HP, but this also has negative equity I think I owe about 10K on this, would I be able to keep this? This firstly depends on the HP company. Is there a bankruptcy clause in your agreement? If they say that they don't mind you keeping the car then it will be up to the OR as to weather he will allow the payments.

    So looking at my options what would you guys recommend, I need to get away from the DMP as although it reduced my payments it really is not helping, and would like a positive start to 09.

    Below is my attempt at the SOA, I have taken the figures pretty much from my current DMP, its right give or take £100

    Monthly Budget Summary Amount(£)
    Total monthly income 1,775
    Monthly expenses (incl. secured loans) 1,468
    Available for debt repayments 307
    UNsecured debt repayments 322
    Amount short for making debt repayments -15
    Personal Balance Sheet Summary Amount(£)
    Total Assets (things you own) 139,500
    Total Secured Debt -171,000
    Total Unsecured Debt -43,462
    Net Assets
    -74,962
    Income, Expense, Debt & Asset Details

    Income Amount(£)
    Monthly income after tax 1100
    Partners monthly income 0
    Benefits 0
    Other income 675
    Total monthly income 1775
    Expenses
    Amount(£)
    Mortgage 500
    Secured loan payments 0
    Rent 150 As said you will have to decide whether you want to rent or pay mortgage you won't be able to do both.
    Management charge (leasehold property) 101
    Council tax 0 If you live in the house you will need to put this
    Electricity 0 ditto
    Gas 0 ditto
    Oil 0
    Water Rates 0 ditto
    Telephone (land line) 0 ditto
    Mobile phone 35
    TV Licence 0
    Satellite/Cable TV 0
    Internet services 0
    Groceries etc. 160 £200
    Clothing 20 £50
    Petrol/diesel 100 is it really this low?
    Road tax 18
    Car Insurance 45
    Car maintenance (including MOT) 20
    Car Parking 0
    Other travel 0
    Childcare/nursery 0
    Other child related expenses 0
    Medical (prescriptions, dentists, opticians etc.) 15 £20
    Pet Insurance/Vet bills 0
    Buildings Insurance 0
    Contents Insurance 0 you will need this
    Life Assurance 11
    Other Insurance 0
    Presents (birthday, christmas etc.) 0
    Haircuts 8 £10
    Entertainment 0
    Holiday 30
    Emergency Fund 0
    HP Car 255
    Total monthly expenses
    1468
    Secured Debt Description
    Debt(£) Monthly(£) APR(%)
    Mortgage 171000 (500) 0
    Secured Debt totals
    171000 - -

    Unsecured Debt Description
    Debt(£) Monthly(£) APR(%)
    Loan 19500 142 0
    CC 7461 57 0
    CC2 6629 50 0
    CC5 230 2 0
    OD3 1500 11 0
    OD2 450 3 0
    od1 575 4 0
    CC4 3000 22 0
    CC3 4117 31 0
    Unsecured Debt totals
    43462 322 -
    Asset Description Value (£)
    Cash 0
    House Value (Gross) 130000
    Shares and bonds 0
    Car(s) 9500
    Other assets (e.g. endowments, jewellery etc) 0
    Total Assets 139500

    Thanks

    That's the sort of thing the OR look at.
    Namaste DeeDee x
  • lol321
    lol321 Posts: 23 Forumite
    ok thanks DeeDee, the call to debtlelpline is at the top of my to do list, suppose there is a bit to think about with my flat then
  • deedee_3
    deedee_3 Posts: 891 Forumite
    I've been helping a friend and we are using NDL, who are excellent, but they are really busy at the moment. I sat with my finger on redial for 25 minutes today before I got through :eek:. So be very patient.
    Namaste DeeDee x
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