Need some more advice

covlad1980

Hey as some of you know from my prevoius posts,I Have around 27 and half debt no morgage only assets are a 800 car and 2k company shares.

From my previous soa,which I posted I have about 80 pound a month after all debts and living cost etc on average,I have never missed a payment,but that due to other people help.
The whole thing is starting to effect me as I only survivng

I have spoken to national debt line and yesterday had my 2nd meeting with citizen advice.Where I met a financial advisor.
National debt line was saying more to bankruptcy ,but yesterday citizen advice recommend payplan IVA to me as an option.But did say bankruptcy was an option.
I have a telephone interview on wed with payplan.Which was arranged by citizen advice.
I really dont know what to do

YamahaR6

My debt is around £34k total and when I spoke to Payplan, whilst they were very good they couldn't accept less than £312 a month from me which over 5 years would've totally crippled me. I think the monthly living allowances for an IVA must be a lot tighter or something cos after filling in my SOA for bankruptcy my surplus is £162 not £312 like Payplan wanted. They themselves after going through everything with me suggested that the IVA wasn't my best option which was good because they could've made themselves some cash out of it.

Best thing to do is go through the phone interview and have them work everything out and see what comes back, you may be surprised and decide it's the best option for you

I'm sure someone will correct me if I'm wrong though but don't you need a surplus of at least £200 a month to qualify?

miss_spooky

Hi,

As YamahaR6 has already said the expenses for a BR are a lot more generous than an IVA. Br is for you to be able to live after the date. An IVA is cut so that you can afford to clear your debt. HAve a look at teh IVA board, there are a lot of opions re IVA as some of them have been very missold in the past. IF you can only manage a budget of £80.00 then I wouldn't have thought it was for you. From what I've read they are not very flexible if you circumstances change or take a salary cut etc. But read the IVA board.

Have you tried looking at doing your own DMP based on pro rata payments? I'm sure the DFW board can give you some good advise here and it may be an option to look at rather than the IVA. It can be self managed so you are in control of thepayments to a degree.

covlad1980

Thanks guys, I dont want to do a debt management plan to be honest,as want a light at the end of tunnel so to speak.The citizen advice said it is 125 min,so was aksing could I lower a few of my monthly expenses so to make that sum.

I ahve read on the iva board and read what martin lewis said about them, guess i am more confused than ever

covlad1980

well just spoke to payplan,they cant help .An iva is not right for me.He saying I have 400 a month left to pay debt,after we went through expenses,he said some would not be allowed ie internet sky etc.
I more confused than ever now.If that the case I would not be able to go bankrupt would I. Help!!!!!!!!

covlad1980

The rent has decreased as living back at home,im council tax and road tax exempt,due to mother disability.But plan to move out in near future


Statement of Affairs and Personal Balance Sheet
Monthly Income Details
Monthly income after tax................ 1250
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1250
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 260
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 30
Gas..................................... 30
Oil..................................... 0
Water rates............................. 20
Telephone (land line)................... 0
Mobile phone............................ 40
TV Licence.............................. 12
Satellite/Cable TV...................... 44
Internet Services....................... 14
Groceries etc. ......................... 200
Clothing................................ 40
Petrol/diesel........................... 180
Road tax................................ 0
Car Insurance........................... 60
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 12
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1012

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 2000
Car(s).................................. 700
Other assets............................ 0
Total Assets............................ 2700

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
hsbc loan......................19800.....315.......0
hsbc overdraft.................1500......0.........0
hsbc credit card...............4975......120.......0
mutual.........................800.......98........0
barclays finace................266.......14........0
Total unsecured debts..........27341.....547.......-

Monthly Budget Summary
Total monthly income.................... 1,250
Expenses (including HP & secured debts). 1,012
Available for debt repayments........... 238
Monthly UNsecured debt repayments....... 547
Amount short for making debt repayments. -309
Personal Balance Sheet Summary
Total assets (things you own)........... 2,700
Total HP & Secured debt................. -0
Total Unsecured debt.................... -27,341
Net Assets.............................. -24,641
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

tigerfeet2006

Right, as you do not own property an IVA is not really that suitable and if you are moving soon then even less so.

covlad1980 wrote: »

The rent has decreased as living back at home,im council tax and road tax exempt,due to mother disability.But plan to move out in near future


Statement of Affairs and Personal Balance Sheet
Monthly Income Details
Monthly income after tax................ 1250
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1250
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 260
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 30
Gas..................................... 30
Oil..................................... 0
Water rates............................. 20
Telephone (land line)................... 0
Mobile phone............................ 40
TV Licence.............................. 12
Satellite/Cable TV...................... 44 Not allowed on your SoA will have to come from your surplus
Internet Services....................... 14 ditto unless essential for work
Groceries etc. ......................... 200
Clothing................................ 40
Petrol/diesel........................... 180
Road tax................................ 0
Car Insurance........................... 60
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 12
Entertainment........................... 20 Not allowed
Holiday................................. 0 £25
Emergency fund.......................... 0
Total monthly expenses.................. 1012

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 2000
Car(s).................................. 700
Other assets............................ 0
Total Assets............................ 2700

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
hsbc loan......................19800.....315.......0
hsbc overdraft.................1500......0.........0
hsbc credit card...............4975......120.......0
mutual.........................800.......98........0
barclays finace................266.......14........0
Total unsecured debts..........27341.....547.......-

Monthly Budget Summary
Total monthly income.................... 1,250
Expenses (including HP & secured debts). 1,012
Available for debt repayments........... 238
Monthly UNsecured debt repayments....... 547
Amount short for making debt repayments. -309
Personal Balance Sheet Summary
Total assets (things you own)........... 2,700
Total HP & Secured debt................. -0
Total Unsecured debt.................... -27,341
Net Assets.............................. -24,641
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

As it stands you will get an IPA, where you pay a percentage of any surplus to the OR. When you move and your outgoings change you just advise the OR of the change and they will lower or suspend the IPA. Will find a link for you.

And yes you will be able to go BR.

Here we go

covlad1980

thanks tiger,guess with citizen advice reccomending paypllan,it threw me.Just did not know what to do.
When going br,what evidence does the or require with your outgoing ie rent etc.As my rent is board and paid to my mum who is classed as a pensinor and has disablity so is excempt from paying rent etc

covlad1980

anyone else sorry to be a nuisance

philnicandamy

covlad1980 wrote: »

thanks tiger,guess with citizen advice reccomending paypllan,it threw me.Just did not know what to do.
When going br,what evidence does the or require with your outgoing ie rent etc the OR has a general idea of how much things in your area will cost...usually they'll not ask for proof unless they suspect your up to something with inflated figures....they will obtain copies of bank statements as well remember...so they can build a picture from them.As my rent is board and paid to my mum who is classed as a pensinor and has disablity so is excempt from paying rent etc

justa teeny addition

covlad1980

That ok then as was wondering how I would show the rent that I pay, I will have a think and decide what to do.Thank you for the support it is really appreciated