BR or IVA

jezzrose

Hi everyone,

A frequent lurker on the board, but now I really need some advice...

My wife, our 1 year old (and another one due in November) live in a co-ownership house. We bought a few years ago in the housing peak so are in negative equity.

We have managed to rack up about £15000 in debt and my wife now has no income coming in, (due to sickness) and we therefore won't be able to pay the bills.

I have spoken to cccs before my wife's income stopped and they suggested a DMP, but now they are suggesting BR - which is very scary.

I would much prefer to do an IVA as the whole BR really scares us, but I need to get the money sorted.

SOA is below:

Monthly income = £1621
Monthly priority outgoings = £1610
Monthly contractual payments = £508
You have 12 creditors
Your total credit debt = £14940
You have £11 left over each month once you have covered all of your priority
expenditure.

However in the monthly priority outgoings, there are some assumptions from CCCS which do not apply - for example hairdressing £21, newspapers £20 etc.

I would much prefer to do an IVA, but what are peoples recommendations?

Thanks in advance - it's reassuring to know that there are other people in the same situation!
a

fiveyearplan

Hi and welcome! Here is the SOA calculator most used on this site.

http://www.makesenseofcards.com/soacalc.html

Fill it in and we can see what expenditure you have. You are correct that you won't be allowed all of them but just fill in and we can give guidance. BTW hairdressing is allowed! You will also find allowances more generous in BR than DMP.

If you have been lurking for a while you will know that it is the lead up to BR and all the unknown things that are scary. Once people actually do it they wonder what they ever worried about. Your home should be safe if you are in negative equity but have a look at your contract with co-owner.