IVA or BR?

tigerfeet2006

djwmcnae82 wrote: »

Thanks David,
Am looking to go to CAB on thursday and see what they say.
I dont have any assests at all except a car thats only worth £700

Below is my SOA, as you can see it is not too bad and is managable for an IVA but thinking will be starting to save money straight away with a BR and the outgoing is over quicker.

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 3
Number of children in household.........
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1400
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1400
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 450
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 50
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 200
Clothing................................ 50
Petrol/diesel........................... 150
Road tax................................ 20
Car Insurance........................... 32
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 183
Medical (prescriptions, dentist etc).... 10 £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........................... 0
Holiday................................. 0 £25
Emergency fund.......................... 0
Total monthly expenses.................. 1187

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

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Vanquis CC.....................1469......66........0
Barclays Overdraft.............2289......100.......0
Barclays Platinum CC...........2840......32........0
Utility Warehouse..............300.......0.........0
Capital One CC.................204.......19........0
Fairview Housing...............18000.....0.........0
Fairview is £0 at the moment as they are not sure if they will try and take £500 a month or £120 a month. Either way will not help the matter.
Total unsecured debts..........25102.....217.......-

Monthly Budget Summary
Total monthly income.................... 1,400
Expenses (including HP & secured debts). 1,187
Available for debt repayments........... 213
Monthly UNsecured debt repayments....... 217
Amount short for making debt repayments. -4
Personal Balance Sheet Summary
Total assets (things you own)........... 700
Total HP & Secured debt................. -0
Total Unsecured debt.................... -25,102
Net Assets.............................. -24,402
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

Looking at that you will most likely get an IPA.

Do you have many possesions at your parents? Are you covered on their contents insurance? If not then it may be an idea to get some for yourself.

Do you wear suits for work? If you do then add £10 dry cleaning.

Do you have your children to stay over at all?

djwmcnae82

@ Tiger... sorry what is an IPA?
My 9 year old spends almost half the year with me yes.
No I have a uniform so no dry cleaning.
I have no possesions really, ps3 and laptop but thats it really, then just small furniture in the garage, why would I need contents insurance? But yes any thing I have would be covered by the folks.

Thanks

foolishboy

djwmcnae82 wrote: »

@ Tiger... sorry what is an IPA?
My 9 year old spends almost half the year with me yes.
No I have a uniform so no dry cleaning.
I have no possesions really, ps3 and laptop but thats it really, then just small furniture in the garage, why would I need contents insurance? But yes any thing I have would be covered by the folks.

Thanks

Because you can add contents insurance to your list of expenditure, therefore decreasing the surplus for the OR to work with when calculating any payment arrangement .. if you can get the surprlus < £99 you wont have to repay a penny. Somewhat immoral but I can totally see why people do it if their excess is close to the £99 already.

RE: IVA vs BR - as someone already said IVAs are usually better for people who have assets to protect. The stigma of BR (and potential restrictions long term as plenty of institutions still ask if you've _ever_ been BR) is worse but it is an easier ride financially in the short term repayment wise for sure. I certainly would have struggled to last 5 years with no excess whatsoever - but it is supposed to be hard after all.

HTH
FB

tigerfeet2006

djwmcnae82 wrote: »

@ Tiger... sorry what is an IPA?
My 9 year old spends almost half the year with me yes.
No I have a uniform so no dry cleaning.
I have no possesions really, ps3 and laptop but thats it really, then just small furniture in the garage, why would I need contents insurance? But yes any thing I have would be covered by the folks.

Thanks

IPA= income payment agreement. If you have a surplus of more than £99 then you pay a % of what is left to the OR for 36 months. This can be adjusted up, down or suspended if your circumstances change.

Have a read of the sticky marked READ HERE FIRST Bankruptcy Help. There is a lot of info on there, especially the first post including stuff about IPA.

The reason I mentioned contents insurance is because if you were to accidentally spill water on your laptop you would have a hard job replacing it, being BR but with contents insurance with accidental damage you will be fine. But since you are covered by your parents then don't worry.

If you have your son half the time then I would add something for activities for him, say £20

Also up your holidays up to £40 as you will probably like to take him on a cheap UK break.

I am assuming the £183 child related is maintenance.

djwmcnae

Tiger, thanks for your help, will amend my SOA to refleft what you say.
Will have another look in the thread you mention, have looked before but became swamped with too much info!!!

themull1

Do you have to pay your parents so much rent? you could use some of it to pay your debts?