£33,000 in debt IVA or bancruptcy HELP

murph524

Join Date: Sep 2006
Post Count: 2
Thanked 0 Times in 0 Posts £33,000 in debt IVA or bancruptcy HELP

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I owe £33,000 on 6 credit cards it has got to the stage now when im late on a lot of them. I just cant keep up with the rising payments. I was wondering should i go and see cit advise bur about it or go to one of the iva places about a iva. Could anyone tell me the advantages or disadvantages of a iva.
Or does any one have any good ideas for me. Im self employed the household intake is about £12,000 offically after tax I currently pay about £900 a month on credit card payments.

Could i sell my house pay off the mortgage then go bancrupt thus getting rid of credit card debts

nrsql

Think they would frown on restructuring debts just before going bankrupt.

1,000 a month income, 900 a month on credit card payments - doesn't leave a lot.
£33,000 isn't a great deal these days but it's a lot on your income.
If you could get the interest frozen then you could pay it off.
Do you have late payment charges etc. that you could maybe claim back.

Do you have equity in the house? If you do then maybe bankruptcy isn't such a good idea.

Have a chat with Paypal, cccs, cab and see what they say.

If you expect your income to rise then your situation is maybe not as bad as you think.

Good luck.

oops_a_daisy

I would post this on the Debt Free Wannabee threads - you will get better advice there

Gingham_Ribbon

I'll move this over to the debt free board for you. They have a wealth of experience and information that will help you get back on your feet.

louisa79

I would try and make arrangements with your creditors. Though if your income is not so high it could take you a very long time to pay back.

An IVA is only really an option if you have a regular income. Being self employed, there might be a month when you can't make a payment, then you get made bankrupt automatically.

Bankruptcy may be an option for you, but get some advice about your situation first. I've just spoken to National Debtline and they were super.

Good luck.

rog2

This thread is already on this board;

http://forums.moneysavingexpert.com/showthread.html?t=314718

Gingham_Ribbon

Murph, I can't merge your thread to the other one as I don't have access to those abilities on this board. If you ask one of the board guides from this board, one of them can merge your threads together for you to keep all the answers together.

rog2

In the meantime, Murph, why not have a look through the Bankruptcy Club thread and see if that answers any of your questions. :beer: