not sure what to do

Evans1882

Hi I spoke with the cccs today about my DMP basicly I owe about £23000 now and at my current rate of paying it off £165 a month I'm looking at another 11 years, I have had advice about going bankrupt before and was going to do this year but now i can afford to pay more a month from 105 to the now 165 so i have been advised to go for a IVA the thing is I'm worried becouse my expendeture changes every six months becouse of my rent and bills some times i can afford more and sometimes less, also I dont think i'm stable enough ie home life to keep the IVA running for five years I would idealy like to go bankrupt and sort this mess out once and for all.I have had debt since my teens I'm now 34 and it has caused no end of heart break and was a factor in my recent marraige breakup. but my cccs advisor said today i would still have to pay my creditors for three years if i went bankrupt I have no idea what to do now

Deep_In_Debt

Hi

I am getting increasingly concerned about the IVA advice that CCCS are giving at the moment. They seem to be persuading more and more people to take an IVA when they are not suitable.

Firstly, IVA's are usually only suitable if you have property to protect as you are expected to re-mortgage and release equity in year 4.

Secondly, usually your monthly income would need to be consistent.

BR may be the way for you to go as your creditors will not see any payment for a while as most of it will go to the IVA provider for the first year or so.

Please get further advice - CAB, National Debtline, Payplan before going ahead with anything.

Good luck.

trudij

Firstly, IVA's are usually only suitable if you have property to protect as you are expected to re-mortgage and release equity in year 4.

wrong.....

Please get further advice - CAB, National Debtline, Payplan before going ahead with anything.

completely agree.

Evans1882

Deep_In_Debt wrote: »

Hi

I am getting increasingly concerned about the IVA advice that CCCS are giving at the moment. They seem to be persuading more and more people to take an IVA when they are not suitable.

Firstly, IVA's are usually only suitable if you have property to protect as you are expected to re-mortgage and release equity in year 4.

Secondly, usually your monthly income would need to be consistent.

BR may be the way for you to go as your creditors will not see any payment for a while as most of it will go to the IVA provider for the first year or so.

Please get further advice - CAB, National Debtline, Payplan before going ahead with anything.

Good luck.

I understand a few months ago they were saying bankruptcy was my only option as it was going to take me years to pay off now all i get is IVA i dont have any assets no house no car i rent privatly so bankruptcy would affect that if i wanted to move its very confusing at the moment

james32_uk

trudij wrote: »

wrong.....

At least advise why it's wrong for the sake of the OP if noone else. Mainly an IVA is only suitable for those protecting an asset (normally a house) but also a few people need to avoid bankruptcy due to issues this may have with their career. Normally this only affects those who work in finance though. Or some people (like myself) found the idea of paying back a good lump of my debt the more moral thing to do.

I must admit CCCS do seem to be using a scare tactic here. As far as I'm aware most bankruptcys are not as long as 3 years unless the judgement is that you hugely squandered the money you borrowed - (eg gambled it away etc).

I firmly recommend Payplan as they were fantastic with me and offered up all the options without any pressure.

james32_uk

Evans1882 wrote: »

I understand a few months ago they were saying bankruptcy was my only option as it was going to take me years to pay off now all i get is IVA i dont have any assets no house no car i rent privatly so bankruptcy would affect that if i wanted to move its very confusing at the moment

Bankruptcy or IVA would affect your ability to move house to rent with anyone who runs a credit check on you first. This is normally only agencies so I stuck with private landlords and have moved twice with no issues.

coolcait

james23_uk wrote: »

I must admit CCCS do seem to be using a scare tactic here. As far as I'm aware most bankruptcys are not as long as 3 years unless the judgement is that you hugely squandered the money you borrowed - (eg gambled it away etc).

Not necessarily. If the OP is assessed as being able to pay an IPA, then he/she would have to pay that for three years, even if he/she is discharged after one year. That's certainly the case in Scotland now, and - as I understand it - this is one of the few things which is the same for both English and Scottish BRs.

HTH

peachyprice

Evans1882 wrote: »

my cccs advisor said today i would still have to pay my creditors for three years if i went bankrupt I have no idea what to do now

You may have to pay what is called an IPA to your creditors through the official receiver, but this would only be if you had a surplus over £99. The allowances in BR are usually a fair bit higher than in an IVA as you are allowed a decent, sustainable standard of living. Even if your surplus is over £99 you would only pay 50% to your creditors. The payments are for 3 years but can be adjusted at any time if your circumstances change or suspended/cancelled altogether.

This would not have any effect on your discharge from bankruptcy, that would still happen at 12 months, or possibly earlier.

trudij

james23_uk wrote: »

At least advise why it's wrong for the sake of the OP if noone else. Mainly an IVA is only suitable for those protecting an asset (normally a house) but also a few people need to avoid bankruptcy due to issues this may have with their career. Normally this only affects those who work in finance though. Or some people (like myself) found the idea of paying back a good lump of my debt the more moral thing to do.

I must admit CCCS do seem to be using a scare tactic here. As far as I'm aware most bankruptcys are not as long as 3 years unless the judgement is that you hugely squandered the money you borrowed - (eg gambled it away etc).

I firmly recommend Payplan as they were fantastic with me and offered up all the options without any pressure.

apologies - OP, its wrong,partly for the reasons that he has stated above, but also because they only expect you to give them the contribution if you are a home owner.If you arent a home owner they do not ask you to pay extra. (at leastm thats what Ive been told is what happens - Im 6 months off my year 4 end, so I may yet find out htat I understand it upsidown.

I m issed out the *sigh* before i posted the "wrong" because its always said as if the extra payment thing (if its there) is always going to happen.It gets very wearing when you know its just not so...

btw - I took mine out for the same reason as you - Im glad Im not hte only one!!!