Help! confused and about to explode :(

elzie

Hiya
im kind of new to the site, just been a lurker for a long time and now seriously need some good advice.
Its a long story of how ive got myself in such a financial mess but the end is that im a week away from completing a sale on my old family home that we had to sell at £55k loss after 2 viewings in a year my darling ex hubby now has denied all knowledge of the debts we have(and stupidly all in my name except a loss on the mortgage which as the bank cannot track him down state that i must repay)and i find myself in debt to the tune of £43k with not an asset in site.
Ive spoken to the CAB who after a 10 minute meeting just told me to go bankrupt, and didnt even look at my figures, ive also spoken to a financial advisor who recommends doing an IVA and going through Grant Thornton, but now just had a quick look on here and it seems they arent all that good either.
i owe so much money and feel so low its unreal, ive no one to ask for proper advice and hope that somewhere on here can give me the slap in the face i need to get myself sorted out )financially once and for all. heres hoping!

FoggyBrain_2

OK -- BR might be an option, if you have no assets to protect. But you do need to speak to a few firms to compare advice and to see who you gel with (if you embark on an IVA you are looking at a 5 year relationship). Pop over to www.iva.com, where you will find a list of firms, with reviews. Have a word with a few, the advice is free and without obligation. This will help start to sort things out in your mind.

Also pop over to www.iva.co.uk, where you will find lots of support.

By the way .. GT aren't that bad :-) All firms have their ups and downs, supporters and critics. You need to find one that works for YOU.

GlamGirlie

Try sitting down with your bank to see if they have any suggestions.

Most people on here will say that is a waste of time and they will simply try and sell you something, but the truth is it can be really helpful sometimes, and they won't charge you for the meeting.

debtinfo

It seems that you have had decent advice to go bankrupt, ( are you particularly against that for your own reasons), remember if you speak to an IVA firm to make it clear that you are looking at all your options and not just there to buy an IVA off them. What is your main objective, freeing yourself of the debts as soon as you are able, paying back as much as you can, protecting your reputation or your assets or your job, these are some of the things to consider when choosing what to do

Gimpsdad

It does seem that BR is financially the best option, but speak to someone who will take you through the pros and cons of IVA and BR and then decide for yourself. What looks least attractive (on the info given) is DMP, so try to avoid anyone who may tempt you with that.

Speak to a qualified expert, there are lots of people on here who have your best interests at heart, but an expert is always preferable. Ask about their experience, professional qualifications as well to try and put your mind at rest.

FoggyBrain_2

Speak to a few companies ... a good IP will present you with the options, along with the pros and cons, but, at the end of the day, it is YOUR decision, not theirs. If they try to steer you in a direction you are not comfortable with ... go on to someone else.

elzie

Hiya

Thanks for the advice above.

i guess my biggest problem is that i owe some money to credit card and loan companies and a lot of it to my family too and want to pay them back most of all.

I owe £8300 to Cahoot, £5300 to MBNA (both passed to debt collections) £1200 on 3 overdrafts and £20000! in mortgage shortfall which they have agreed to take £12000 and write off the rest if i repay £200 a month for 5 years which i understand is pretty much what an IVA would do but combine all my debts.

I also owe my mum £17000!! I think whats holding me back from bankruptcy is that ive been told they will take my car which is worth practically nothing anyway and give me a really tight budget to survive on for the next few years. It sounds really bad and i want to take responsiliby for these debts but its just doing that final step that im scared of.

He has agreed to pay me some money towards the mortgage shortfall but until i get that in writing i wont hold my breath.

I am just stuck between IVA and bankruptcy- neither of them will be easy but which one do i do! arghhh!

Gimpsdad

If your car is worth nothing then you are unlikely to lose it. The OR may play hardball and ask you to "buy him out" of his interest in the car, but statistically that is unlikely.

Out of the 2 options, BR is quicker and cheaper given the situation you describe, but only you can make the choice.

FoggyBrain_2

In an IVA you will have a tight budget to stick to for 5 years (maybe 6). No upfront fees, if you go to a decent firm.

In BR you will have a similar budget to stick to ( might be a wee bit tighter) for three years (on the assumption you get a payments order). This will cost you in the region of £700 for your day in court (payable on the day).

They are unlikely to take the car (unless it is of some value), although I have see them seize a car valued at £1500 ( complete surprise). Apparently they got £800 for it at auction, which by the time you take all fees and costs out, netted them pennies!

debtinfo

The main consideration in a bankruptcy for taking a car or not is what the car is used for rather than just the value, so the question is what do you need the car for?

Bankruptcy used to actually have lower payments than an IVA did, but nowdays they are pretty similar, there are a couple of reasons that an IVA budget may be better though and that is where you either have large HP payments or large (as in compared to similar homes in your area for your needs) mortgage/secured loan payments and want to keep them up

debtinfo

The main advantage of bankruptcy though is that it cant fail, so if you lose your job for instance you wont get your debts back which you most likely would (if of course you couldnt find other similar paying work)