New, looking for more specific advice about IVA vs. BR

livinginhope

From my experience,I wouldn't recommend the CAB,I know lots of people find them a lot of help,but ours didn't have a clue about debt,I would ring CCCS or Payplan,don't worry they are nothing like GP,you have nothing to fear from a DMP,we are doing one and only pay £115/month,Payplan have managed to stop all interest and charges right from day one,I think you need to give it a go first before bankruptcy,if things don't work out,you still can go BR.
I don't know about HP and a DMP,but are you not able to just hand the car back?

plumduff-2

If you have at least one CCJ and owe less than £5k... you will be eligible for an administration order...

On an ADO, you would pay the court to administer your debts... you would pay a monthly amount to the courts, the minimum is around £4 per month - if your inc/exp shows this is all you can afford.. You then pay this amount to the court on a set date every month... Whilst on an ADO, no creditor can take further action..

The other benefit - there is no fee to do an ADO - whereas BR is at least £325..

If you are considering an ADO - please read National Debtlines factsheet on it - there is alos one on the courtservice website... TYou should ask the court to make a composition order at the same time (the CO means you pay £x for 3 years and then all remainder debts are written off...

Bakeybadoo

Well that would be an option for my husband (he has 1 CCJ) but unless we get rid of the HPA, his debts are obviously over £5k.

As for me, I have no CCJ's so that's not an option for me.

Shame really as that sounded something that would be good.

Bakeybadoo

livinginhope wrote:

I don't know about HP and a DMP,but are you not able to just hand the car back?

I don't think you can, can you? It's not like you can hand it back with no comeback. We'd still be eligible for the amount owed. I have asked on DFW main board to seek advice on our options with regards to the car.

plumduff-2

It is a shame - would have been perfect for you, your OH is over the £5k mark... so doesnt qualify... bu&&er...!!!

If at any time your landlord has taken possession action on your rent account, even if it was suspended - this may give you a court number (ccj) to get round the ccj issue

plumduff-2

Bakeybadoo wrote:

I don't think you can, can you? It's not like you can hand it back with no comeback. We'd still be eligible for the amount owed. I have asked on DFW main board to seek advice on our options with regards to the car.

You can give the car back, lathough there would be a shortfall, so monies would still be owed to the finance company...

This is total amount owing less paymetns made plus termination costs, auction costs, car valetting costs etc = still high balance usually...

livinginhope

plumduff-2 wrote:

You can give the car back, lathough there would be a shortfall, so monies would still be owed to the finance company...

This is total amount owing less paymetns made plus termination costs, auction costs, car valetting costs etc = still high balance usually...

Would the balance owing then become a personal debt,rather than secured on the car? if this is the case,then the outstanding amount could then become part of the DMP? I don't know,this is just my thoughts,as once the car is sold,the debt can't be secured on it,can it?

Bakeybadoo

That's good thinking. We are still on good terms with the finance company so maybe we could call them and see what they say and suggest. I know they are going to be after us for all they can get but it doesn't hurt to a) keep the lines of communication open at this time and b) see if we can't come to some sort of arrangement.

plumduff-2

livinginhope wrote:

Would the balance owing then become a personal debt,rather than secured on the car? if this is the case,then the outstanding amount could then become part of the DMP? I don't know,this is just my thoughts,as once the car is sold,the debt can't be secured on it,can it?

Yes - it would be just another debt - the car would have been repo'd or voluntarily given back, so theres now no car to secure the debt on...