No way out....

izools

So enter into an IVA and have your life back.

I don't understand why you would willingly put yourself in a position whereby you will never be out of debt when you can owe nothing five years from now?

You aren't credit worthy now anyway what with owing more than you earn in a year, having an IVA isn't likely to reduce your credit worthiness now given how much you owe but it will enable you to have a life, it will enable you to be debt free in five years, and it will enable you to be credit worthy again in six years time.

Anything else, in my personal opinion, constitutes biting off your nose to spite your face.

Having deal with insolvency myself I can assure you 100% that it is the right thing to do in a position like yours.

It is not a stigma to carry, it is simply making official a financial situation that you are already in

Rochdale_Guy

Anyone else?

Svenena

Have you tried phoning CCCS or one of the other debt charities? I know you've tried filling in your details online, but I understand that they can contact your creditors on your behalf to arrange lower payments, etc. I think if you speak to them, it could take a weight off your mind. The support on here is great, but you could use some professional advice. Nothing to lose by making a phone call.

Wootball

Rochdale_Guy wrote: »

Anyone else?

I honestly don't understand why you're not going into an IVA. I really cannot get my head around why you aren't doing it.

You already owe the money, what's done is done. All you would be doing is giving it a name and giving yourself the chance to get rid of it.

Rochdale_Guy

And what if you enter into an IVA, agree to pay a fixed legally binding sum each month (for 5 years is it?)to each creditor, then get made redundant after entering an IVA?

Worse case scenario I know, but Councils all over the UK are doing this as we speak including my employers, Rochdale Council.

Rochdale_Guy

And if going for the last ditch loan option, I have to do it before the (to quote Martin) Bloody stupid loan rule from the EU!

comes into effect on 1st february 2011 (which is, yikes, only Tuesday).

andrinaperry

Cut up the lot and pay them off as quickly as possible

Wootball

Rochdale_Guy wrote: »

And what if you enter into an IVA, agree to pay a fixed legally binding sum each month (for 5 years is it?)to each creditor, then get made redundant after entering an IVA?

Worse case scenario I know, but Councils all over the UK are doing this as we speak including my employers, Rochdale Council.

In that case worst case scenario is BR - but even then it's 6 years of being unable to get a loan rather than the rest of your life paying off debts. It's better than being in debt with these people and a lot less stressful!

The.Far.Tall.Knight

Rochdale_Guy wrote: »

Hi everyone, thank you so much for the suggestions and good sound advice.

If I go for the loan route to pay off all the cards and just pay back one big (but lower rate % APR) loan, any suggestions as to who'd touch me with a barge pole?

I'd rather go for a fixed low rate APR % "until paid off" credit card (and cut it up as soon as it comes), but again, which company?

I can't go for a loan and try for a new credit card.

This application really is my last chance....

I tried the CCCS route and input all my details, it suggested bankruptcy or getting my creditors to lower / freeze the interest.

I can't see anyone doing that for me, and with the MBNA one, it's getting higher each month despite them taking a huge chunk each month in interest.

Oh boy

honestly your best bet is CCCA as it works and yes they can get interest frozen and declaring bankrupt aint as bad as it sounds - your debts are written off, i urge you to call the freephone numbers the national debt helpline on 0808 8080400 yep its a freephone number and its impartial), also go back to the Consumer Credit Counselling Service on 0800 138 1111 but ring them rather than "online" better to speak to an experienced advisor, by the way I am curious, your statement of affairs shows a secured debt of £106 a month (if you pay rent, whats it secured on?) - best regards FTK

izools

Rochdale_Guy wrote: »

And what if you enter into an IVA, agree to pay a fixed legally binding sum each month (for 5 years is it?)to each creditor, then get made redundant after entering an IVA?

Worse case scenario I know, but Councils all over the UK are doing this as we speak including my employers, Rochdale Council.

Incorrect.

You agree a figure based on your current circumstances.

If your circumstances change, you inform your IP (Insolvency Practitioner) of the change and they agree an alternate figure based on income.

It's not a legally binding agreement that says "I will pay X amount even if I can't realistically afford it".

Is is an agreement that says, I'm being honest, and honestly I will pay what I can, when I can, without being frivolours, and without cornering myself into a position whereby I have to wear five year old rags and eat beans on toast.

IPs are a totally different kettle of fish to actual creditors. They are realistic and understanding, and won't allow you to screw yourself over to pay what you can't afford.

When I had to go bankrupt an IPA (income payments agreement) was established for me to continue repaying my debts based on affordability. I paid a lot some months, a little other months. Every step of the way I advised the Official Receiver of my situation, and the repayments were agreeably adjusted in accordance. This didn't extend the 36 months I was legally obliged to contribute what I could afford.

As with any insolvency, the same rules apply, including in an IVA.

Insolvencies aren't a way to get out of debt, and they aren't a way to oblige yourself to more than you an afford.

Insolvencies take into account a realistic situation and apply a structured way of making contributions towards your debt in line with affordability.

Like I say, an IVA is NOT changing your financial situation.

Insolvencies are merely a way of taking your financial situation, and making it official. Taking the debt management out of the hands of the creditors and putting it in the hands of honest folk.

When I was in a situation similar to yours, I struggled with repayments that took the lions share of my income, putting groceries on tick. That had to stop. So I closed all my accounts and started to repay but soon ran out of money. So, with the help of the CCCS, I agreed reduced repayment plans but some creditors didn't play ball. Ergo I had no choice, despite my best efforts, to apply for an IVA. I was unfortunate enough to be declined for an IVA, my creditors didn't agree because I owed 47K on a 15K income and they wanted more over five years than I could afford. I was therefore left with no choice but to declare myself bankrupt.

This didn't mean I got out of debt. I paid off a large sum of my debt post bankruptcy. I merely made official my pre-existing financial situation and enabled myself to live a realistic lifestyle, without any affordability issues, without any !!!! from creditors or debt collection agencies, whilst contributing a good percentage of my surplus income toward a debt that thankfully didn't burden me for a lifetime.

Had I stuck my head in the sand I probably would have only just reach the point now where creditors were referring accounts to debt collection agencies. But I would also be suffering from malnutrition, depression, and a whole plethora of other things that affected not only my life but the lives of everyone close to me. And these issues would continue to be prevalent, getting worse, whilst carrying a debt, stigma, and hassle from creditors, continuing over a much larger chunk of my life than anyone should ever have to bare.


I suppose the best way I can respond to the thread title of "No Way Out..." is that the only way out is the path you allow yourself to walk