Disheartened at thought of an IPA

julesb31

I'm currently saving for my BR fees and looking forward to getting my life back on track. The only thing thats depressing me is the though of an IPA.

By going BR I'm only going to be saving approx 170 a month as a large part of my problem is payday loans. My wage is 1400 a month and I don't think I'm going to be able to do a SOA that will will bring the disposable income to 0.

Just really don't want to be paying out for the next 3 years as I'll probably end up paying out the same as I am now, therefore not saving anything. Although my debtors will be off my back

Has anyone had a good income but not had to do an IPA?

tigerfeet2006

Pop up your SoA and let us have a look. It is hard to say whether you will get an IPA or not with out more info. An IPA is not a noose round your neck, the OR is very accomodating, if your income goes up, down or disapears then the IPA can be adjusted up, down or suspended and the suspended months count towards the 36 months. If your expenses increase, again the OR is quite accomodating. If you have a one off emergency, again most OR's will let you miss a couple of payments and put it on the end.

http://www.stoozing.com/msoc/soacalc.php
Fill it out, press the MSE button to format it and C&P into the thread.

PippaGirl_2

I think this dilemma is common. Thing is if you go BR you know it will all be over after 36 monthly payments and you won't have the lenders on your back at all though things will be tight for that time. Whereas if you don't how many months/years will it take to pay all this back? That's assuming you can afford to and can cope with the pressure and demands.
I can't remember, have you put your SOA up here for people to advise? Might be an idea if not.

alastairq

Hi..as pippa says, what is the alternative to BR?

[Your post suggests an alternative, since you are weighing up the economics of a potential IPA?}


Perhaps you are not being totally honest with yourself in regards to the amount you actually spend per month on day-to-day living? [This is often more than the individual imagines?]

As Tigerfeet says, post up your SOA for us to look at........?

sniggings

depends what you owe.

There are IVA, debt management plans, or coming to an agreement with your lenders through CAB or the like, probably other options too I do not know off, thats why ringing one of the helpline is very useful, CCCS CAB or debthelpline are 3 good ones, they have all the options and get all your details so can give the best advice.

As for an IPA, depending what your rent is, I was on around £1100 a month and no IPA, my rent was £375 and it was in 2009 so before the new guidelines o taking all excess income, I think back then it was around £100 excess before an IPA kicked in.

But saying that, you could have different expenses to me, such as higher travel costs, rent, childcare, so an income of £1400 does not auto mean you will get an IPA

PippaGirl_2

Just adding really that .. almost everyone is disheartened at the thought of an IPA.

It's normal, but a means to an end and it is time limited and sometimes it is the only way forward. It is forward, forward into a new start and a new beginning.

sniggings

Just to add, if you are only going to be £170 a month better off and are worried you may get an IPA, it sounds as if you will have excess income, if you payments are around £45 a week maybe BR is not for you, maybe the answer is getting the payday loans sorted out someway, maybe think about posting an soa with all your expenses and what you owe so we have more to go on.

debtinfo

HI Jules as the others have said the IPA is reasonably flexible to changes in circumstances. What I believe may be the problem and forgive me if I am way off the mark is that it is a formal process for which you need to pay attention to your spending and budget properly. For many bankrupts it is the first time they have truly budgeted in their life as they have always had access to easy credit and that can be scary for some people knowing they can't go back once the court papers are signed. As said above what other options are there. Probably less formal ones that allow you the option of continuing to use credit, do you want that, will you ever truly get out of debt that way. Some people whilst eligible for bankruptcy are not mentally ready for it ad it requires a change of lifestyle and thought process. In cases like that I would encourage them to go look at the other boards on here. There is some great help in how to budget how to same money and how to live a more frugal existence without necessarily losing all the fun

battyboimatt

Why be dishartened, before I went BR i was paying out over £800 a monthm in minimum payments to my credit cards, I was struggling to pay my rent never mind money for the car, petrol clothes etc, and now after my Bankrupty I pay £150 in a IPA, I have monty for general needs and spening and Im coping better than I ever did

Depth_Charge

Hi jules

Getting any IPA right at the start is the key.

Make sure you dont under score your expenditure, this can happen after struggling with debts prior to bankruptcy.

The idea of bankruptcy is a fresh start with with reasonable living costs.

Along with what others have put the new CAB guide on IPAs & IPOs could help you here -

http://mymoney.nedcab.org.uk/moneyadvice/ipaipo.asp

http://mymoney.nedcab.org.uk/moneyadvice/bankruptcypoc.asp

Have you looked at the possibilty of a grant towards bankruptcy fees via any of charity organisations..

http://forums.moneysavingexpert.com/showthread.php?t=1056083