stupid stupid debt help AGAIN

tracytaxi
tracytaxi Posts: 297 Forumite
HELLO,
Having got myself free from debt in 2009 by going bankrupt i am back on here again.Basically split from hubby got back together, split again, mum had cancer, grandad died , and i ended up in hospital with heart problems.
The credit I had was manageable on the joint income with my ex husband who then became partner, but without warning at xmas he leftt! Mum then had bowel cancer, grandad died, i moved house and ended up in hospital, just came out yesterday.
Since March I decided to sort out the finances as i wasnt able to work much as mum was ill and my daughter is disabled and i was caring for her.

i had several mobile phone accounts , one for me , one for ex and broadband , i cancelled them and they charged me to end of contract over a £1,000 i had utility bills from old house and i couldnt pay j d williams or Bradford mint where i ordered my daughters 18 th bracelt from £160 , added to this was virgin media which i cancelled when i moved as they cannot supply my area so they billed me to end of contracy also.

i have now got debt about £5,000 in total. Payplan recommended a iva at £75 per month this sounds absurd, i only rent my house and no savings.

I am self employed taxi driver, the taxi is in my name on log book as keeper for insurance but i dont own the vehicle its a rental.

I made a loss this year also, but payplan can use the tax credits etc to fund the iva. Is the good advice an iva for £75 and what of the mobile contracy i still have with vodafone for business, its up to date, will that be ok to carry on , and i have a basic account with lloyds and a basic account with barclays , i have no debts with either bank can they stay open ??

I had thought of a dro, but pay plan said no because of the car, but it is a tool of a the trade, stressed and confused please help.

Added to which dear daughter 18 just quit college and got a job 15 hours a week sometimes 20, so my housing benefit and council tax reduced and i lose approx £35 there a week as she is a non dependent ( ha ha ) and £74 from less tax credits and child benefit.

any advice most welcome , cannot believe i am here again, i do online banking every day , i write everything i spend and pay down , but too many changes in so short of time, and i couldnt make allownces for them.thank you :A
:T better late than never, better to laugh than cry:j

Comments

  • fermi
    fermi Posts: 40,546
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    If the car is rented, then it's not an asset in a DRO.

    Very odd advice from payplan.
    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

    IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed
  • debt_doctor
    debt_doctor Posts: 4,595
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    Very strange indeed.

    Lets look at the vehicle - you don't own it - so it is not an asset for DRO purposes.
    Just to alert others who may be self employed taxi drivers or tradesmen with a modest van, only a single DOMESTIC motor vehicle is allowed the up to £1000 exemption so a taxi or builders van carries no such exemption so would have to be worth less than £300. If the vehicle has a dual use - ie I use the van for work but also go shopping in it and other domestic uses it MAY attract the £1000 exemption.
    So, back to you. Your vehicle is most definately not an asset for DRO purposes. I also find an IVA for such a low sum and for someone in rented property as riddiculous beyond belief!
    If you fit the other DRO rules then I suggest you try a different competent authority.

    DD
    Debt Doctor, Debt caseworker, Citizens' Advice Bureau .
    Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***
  • tracytaxi
    tracytaxi Posts: 297 Forumite
    Hi yes I thought it was strange advice from pay plan re Iva, was looking on insolvency website and it referred to tools of the trade being excempted , so if I did own a cab later wouldnt that be tool of the trade ? Has any one got any further advice re phone and banks too please x
    :T better late than never, better to laugh than cry:j
  • fatbelly
    fatbelly Posts: 20,380
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    If you do a DRO, the mobile contract should be OK to continue as part of your business.

    The Lloyds and Barclays accounts would not need to be mentioned in the application unless they are overdrawn (in which case they're a debt and get closed) or contain more than you need to get you to your next income payment (in which case they are savings and contribute to your £300 asset limit).

    If Payplan believe you have £75 per month surplus, that's an area your Intermediary will need to look at, but I wouldn't expect it to cause a problem in practice.

    You'll have to judge whether now is the time to do a DRO or just hold that as a possibility in case any creditors get overly aggressive.
  • RuthnJasper
    RuthnJasper Posts: 4,032
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    Just wanted to say - we ALL make mistakes sweetie. Just because a person has been through a bankruptcy or an IVA, that doesn't automatically render them immune from them.

    At least you're putting a stop to this one NOW - before it gets beyond the help of anything except a further bankruptcy. Please don't beat yourself up too much. No-one's perfect in this world (with the possible exception of David Tennant ;) ).

    Good luck honeybee. xx
  • tracytaxi
    tracytaxi Posts: 297 Forumite
    or ali mccoist x
    :T better late than never, better to laugh than cry:j
  • RuthnJasper
    RuthnJasper Posts: 4,032
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    tracytaxi wrote: »
    or ali mccoist x

    Yes, especially in his Question of Sport days ;)
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