CCCS debt remedy suggest IVA or dmp of £400 we want to file bankruptcy?

mummybiz5

We are on a 7 year dmp with CCCS paying £702 a month and struggling to manage with 5 kids and rising living costs - out of curiosity put our figures in to CCCS online debt remedy and it suggests an IVA or a dmp paying £400 per month - can we still go bankrupt if debt remedy doesn't suggest it or will our surplus appear to high to OR - also if we moved to a bigger rental paying more than our mortage - say £850 rather than £750 ( but we are on svr and mortage costs will rise ) would this be frowned upon? We don't want to go down the IVA route

IF

Hi MB, please try another Debt charity for a second opinion and if they recommend BR come back and we will help you all we can.

Main recommended sources of help:

• National Debtline - Website: National Debtline Telephone: 0808 808 4000
• Citizens Advice Bureau - Website: Citizens Advice or visit your local CAB centre (find nearest)
• Consumer Credit Counselling Service - Website: CCCS Telephone: 0800 138 1111
  

Others:

• Business Debtline - Website: Business Debtline Telephone: 0800 197 6026
• Christians Against Poverty
• PayPlan
• TaxAid - Help with tax debts.

Best wishes
If...x

dojoman

Try speaking to one of the below, they will give free and impartial advice.


https://www.nationaldebtline.co.uk/
https://www.citizensadvice.org.uk/


The only reason you could not go BR is if you are not insolvent, as long as you are insolvent then you can go BR.

fifilamuecats

Hi Mummybiz.

My husband and i were both on CCCS and in the end our finances got so bad that we couldnt even afford the reduced amount. We decided to go bankrupt in March of last year!! It was the best thing we ever did.

All i would say is do you have any secured assetts? such as a house or a car etc. They will want to see why u have got into debt and what u have done to get out of it!!

I made sure that i could prove everything in terms of why i had maxed out cards and loans and my hubby lost job at one point etc.

I was shocked at how easy the whole process was. The hardest bit was filling out the forms. I had one phone call for about an hour to go through a few bits on bank statements etc and then i went to court (we u all sit in a room together) and literally said two words.

I then waited for about half an hour till i got my docs.

I was discharged about 3 months later. i have to be honest if you have gone to the lengths of CCCS there really is no difference with credit. I actually got a catalouge about three months ago with a minor credit limit. ITs now up to £800 (not that i have spent anything as i pay it off its just good to see there is life after)

We owned our house but as it was bought in 2007 and in negative equity they werent interested, the car was used for work (and as long as its not worth a fortune u will be ok)
xx

HOLIDAYMAD_2

Mummy -

try and keep your threads in one place, because its really the same questions and we are answering all over the place.

its nothing to do with CCCS whether you can declare bankruptcy or not, if you can demonstrate to the judge that you have sought appropriate advicse and thats not off here and it is recommended you go BR then they wont deny it, all the judge asks is have you taken legal advise ie cab , and do you understand the implications .

But if you have surplus income - sadly so be it and you may have to pay into a IPA, i cant really understand what you want , your not going to avoid a IPA if you have surplus , and if your strugelling with a DMp or IVa then what is the point in dragging it out.

IF

HOLIDAYMAD wrote: »

Mummy -

try and keep your threads in one place, because its really the same questions and we are answering all over the place.

HM, It seems that mummybiz5 last thread was more about morgage/housing etc. Hopefully she will seek more advice from the other Debt charities as mentioned in posts 2 and 3.

HOLIDAYMAD_2

point taken but same thread of question in each post ie how to avoid a IPA

mummybiz5

Just to say - I'm not trying to find a way to avoid an IPA at all - quite happy to pay one if our allowances are set at a reasonable level - I think my threads have been about different issues within the overall aspect of whether to go for bankruptcy or not so HOLIDAYMAD I think your last comment very unhelpful

HOLIDAYMAD_2

mummybiz5 wrote: »

We are on a 7 year dmp with CCCS paying £702 a month and struggling to manage with 5 kids and rising living costs - out of curiosity put our figures in to CCCS online debt remedy and it suggests an IVA or a dmp paying £400 per month - can we still go bankrupt if debt remedy doesn't suggest it or will our surplus appear to high to OR - also if we moved to a bigger rental paying more than our mortage - say £850 rather than £750 ( but we are on svr and mortage costs will rise ) would this be frowned upon? We don't want to go down the IVA route

Sorry i dont understand why you didnt get my point. And i think a bit harsh just to slam me down when ive given you a lot of time and information. I am trying to help you look at all your options , BR is a very stressful route and not one to consider lightly , massive implications in the long term.

So:

It not the OR that says whether you can keep or not keep supporting a mortage, but you have said you have got 10k equity so yes they may question why you left a asset. OR if you remained may and try and dispose in time as over a 1k equity but not yet.

Things such as house prices are still dropping so it may be that its not deemed you have 10k, why not market it and see what the price would be for a true sale.

Its also not down to CCCS to whether to give you permission to continue with the DMP or not and file for BR that is your choice, you can altogether stop paying the DMP and think out your options, ive tried to make the point whatever you do will in time before a BR will add on costs ie non payment of creditors or mortage.

But you do have a high level of surplus income so some would say your not insolvent just really strugelling to maintain the creditors, and that could end up with a massive IPA, no one who goes BR wants a IPA never mind a massive one, trying to avoid one is not wrong but to get one has potentially as high as you would get would be really frustrating , and i think you would be even worse off with no benefit of a asset such as the house .

When you petion your own BR, the judge will look at your statement of affairs which will include assets and suprlus income , i dont think they would deny you BR but would question why when you are maintaining a mortage and have a huge surplus income- contrary to what you think you have a lot left over.

The OR is far less generous than a DMP for allowances so id imagine the amount you are paying in the DMP would be near on a IPA if not more.

Renting and good long term landlords is a gamble and social housing for 3/4 bedrooms properties is nigh on impossible to get unless your deemed homeless with a full duty . Renting is a gamble always for someone with a BR history.

In todays climate Rentals are often higher than a mortgage.

but if you have outgrown the size of the house then maybe rental is the option , you could still rent your house out for a profit and move into a rental .

It may be that a IVA is the best option , 75 percent of the debt is wiped and payment is over 5 years whilst currently you are repaying 100% back on a DMP.

And none of us are the OR so no idea what they would think, but i do think they would question walking away from an asset that you can maintain, more likley not to frown if you chose the IVA route and that failed.

Also every month you are paying 700 pound , maybe save a few months and offer full and final settlements to those that may accept, most will accept at 30 percent reduction.

confused76

ifwisheswerehorses... wrote: »

Hi MB, please try another Debt charity for a second opinion and if they recommend BR come back and we will help you all we can.

Main recommended sources of help:

• National Debtline - Website: National Debtline Telephone: 0808 808 4000
• Citizens Advice Bureau - Website: Citizens Advice or visit your local CAB centre (find nearest)
• Consumer Credit Counselling Service - Website: CCCS Telephone: 0800 138 1111

Others:

• Business Debtline - Website: Business Debtline Telephone: 0800 197 6026
• Christians Against Poverty
• PayPlan
• TaxAid - Help with tax debts.

Best wishes
If...x

hi MB i would do as If and Dojo have suggested and contact one of the other free debt charities as a second opinion certainly wouldn't hurt. good luck x