Which way to go...

davebrown

Hello All, Just thought i'd give this forum a try as it seems great to have a place to discuss these matters with complete unbias.
To cut a long story short, I have got myself into a situation where I need to either become bankrupt or go for an IVA.
My main debts are credit card, bank loan, overdraft and a upcoming demand for 2 years income tax which i've been putting off for too long but dont seem to be able to get out of the circle of getting out of my overdraft to avoid those charges to start saving to pay off the tax.
I dont like the idea of the IVA due to the length which I understand as 5-7 years, and as one of my big outgoings is rent (800 pcm) even my landlord said to me the other day "why on earth am i still renting ? I should be looking at a mortgage", but I doubt mortgage companys will look at me if I did take out an IVA since I would have no deposit to put on a property. For what its worth I take in 3500 pcm, have an overdraft limit of 2000, loan repayment of 450, 800 pcm rent, after food and general purchases a month (family of 4), my bank balance is always sitting right on the limit of the overdraft, often slipping over causing me extra charges each month until my monthly is completely in. i would love to get in a position to actually some light at the end of the tunnel and start building a home and doing family things like most people but instead just see myself fighting debt for a future.
I consider the personal bankruptcy due to it being shorter but really done want to end up with that mark against me for the rest of my life.
Well if anyone could advice me at all on what i've wrote above it would be very much appreciated.
Regards.
Dave.

loobyloo1980

davebrown wrote:

Hello All, Just thought i'd give this forum a try as it seems great to have a place to discuss these matters with complete unbias.
To cut a long story short, I have got myself into a situation where I need to either become bankrupt or go for an IVA.
My main debts are credit card, bank loan, overdraft and a upcoming demand for 2 years income tax which i've been putting off for too long but dont seem to be able to get out of the circle of getting out of my overdraft to avoid those charges to start saving to pay off the tax.
I dont like the idea of the IVA due to the length which I understand as 5-7 years, and as one of my big outgoings is rent (800 pcm) even my landlord said to me the other day "why on earth am i still renting ? I should be looking at a mortgage", but I doubt mortgage companys will look at me if I did take out an IVA since I would have no deposit to put on a property. For what its worth I take in 3500 pcm, have an overdraft limit of 2000, loan repayment of 450, 800 pcm rent, after food and general purchases a month (family of 4), my bank balance is always sitting right on the limit of the overdraft, often slipping over causing me extra charges each month until my monthly is completely in. i would love to get in a position to actually some light at the end of the tunnel and start building a home and doing family things like most people but instead just see myself fighting debt for a future.
I consider the personal bankruptcy due to it being shorter but really done want to end up with that mark against me for the rest of my life.
Well if anyone could advice me at all on what i've wrote above it would be very much appreciated.
Regards.
Dave.

I have also just joined the board, and I was advised to post my income, outgoings and debts on here so people could help me see where I was letting money drop through the sieve. It is about the only piece of advice I feel able to give you, but it's a good piece. Some of them are really good with this stuff and i have picked up a few very useful tips. Good luck xxx

ashmit

Personally, if it was possible to pay everything back, I'd go down that route and avoid bankruptcy. It would make the next however many years even more difficult for you. See here - 'Bankruptcy is a humiliating and public experience, it is also a very primitive and grossly unfair means of dealing with a debt situation, it is a no-win situation for all involved.'

As loobyloo1980 said, post your income and outgoings and people will be able to point out areas that you can cut down that you might have missed - it's easy when you're too close to a situation.

It's going to be October 2009 before I'm out of debt and we can start thinking about having children and the like, but I am looking forward to the party I'll have that day There is light at the end of the tunnel - stick around and we'll help you find it.

munchies

Hi I would disagree. Depending on your circumstances bankruptcy could be a way of dealing with all of your debts and giving you the 'light at the end of the tunnel'. These days most bankruptcies only last 12 months, although if you are required to make a payment out of your income this would last 3 years. Bankruptcy would affect your credit file for 6 years, the same length of time as an IVA. Following the discharge of your bankruptcy there is nothing stopping you getting a mortgage although you would have to shop around and would expect to pay more. The link above is obviously to a company who deals in IVAs so they are bound to be more pro-IVA as that's how they make their money! You need free independant advice. Try National Debtline https://www.nationaldebtline.co.uk
HTH