Ask a StepChange (formerly CCCS) counsellor a bankruptcy question

StepChange_James

SPELLKASTER wrote: »

I have around £15K of debt and am currently on an IVA through Debt Free Direct.

I dont qualify for a DRO because of the amount of debt I have.

I would like to know that if I apply for full bankruptcy, will I have to cancel the IVA?

Hi Spellkaster,

As your IVA is a legally binding agreement you need to speak to Debt Free Direct before considering any other debt solutions.

It's quite a complex process to leave an IVA, so you'll need to get their guidance before taking any further steps.

Kind regards

James

StepChange_James

poopscoop wrote: »

Hi

I've just got a quote from PayPlan saying that for approx £60k of debt we will pay £491.14 towards the creditors. For me this is 55.9p in every £ and for my wife it's 49.2p back in every £.

As I am self employed (Total income around £4500, expenditure £4000) does this sound about right to you or should I shop around as I hear some people can get as low as 10p in a £?

Thanks in advance

Hi poopscoop,

I'm guessing that PayPlan are looking at an IVA for you and that's where these figures are coming from.

IVAs should be recommended on your current circumstances and the monthly payment based on what you can afford not the best deal available. The more you can offer to your debts the better the chance you have of them agreeing to the IVA.

10p in the pound IVAs are quite rare and usually only in situations where the applicant would be better off going bankrupt and the creditors can see that.

Having said all this, there's no harm in speaking to a few IVA companies and getting their input. The only thing I'd add is to be wary of companies that try to pressurise you into taking an IVA with them.

Hope this helps.

James

dedoledo

Hi,

Live in Scotland, was Sequestrated Aug 2011, lost my job as part of conditions of employment were i couldn't be bankrupt.

Had been trying to sell my flat but couldn't, decided the only option was to have it reposessed, this took overly long as i didn't have any arrears yet.

Was discharged July 2012, had by flat reposessed Sept 2012, now have the Mortgage provider chasing me for £60k as they sold it for £110k, i paid £225k.

Not phoned them yet as i don't know what to do, just managed to clear up £1,200 of service charge for the flat that were accrued after bankruptcy and now working on £1,500 council tax bill from same period.

I earn £600 per month working part time, and after bills are paid i pay KPMG £25 as this is all i have spare.

What are my options ??

StepChange_James

dedoledo wrote: »

Hi,

Live in Scotland, was Sequestrated Aug 2011, lost my job as part of conditions of employment were i couldn't be bankrupt.

Had been trying to sell my flat but couldn't, decided the only option was to have it reposessed, this took overly long as i didn't have any arrears yet.

Was discharged July 2012, had by flat reposessed Sept 2012, now have the Mortgage provider chasing me for £60k as they sold it for £110k, i paid £225k.

Not phoned them yet as i don't know what to do, just managed to clear up £1,200 of service charge for the flat that were accrued after bankruptcy and now working on £1,500 council tax bill from same period.

I earn £600 per month working part time, and after bills are paid i pay KPMG £25 as this is all i have spare.

What are my options ??

Hello,

I'm assuming that KPMG are your trustee, if so they'll be the people to speak to about this. If you gather up your details and give them a call you should be able to get an idea about how to proceed.

Kind regards

James

Stresseddebt

Hi I am currently 25k in debt. Have full time job and never missed any payments. Have Mortage. Tryed to top up my unsecured loan it clear my debt and free me money monthly. Bank response was that they will loan there borrowings. This isn't helping me as I will still be 10k debt with cc and store cards. Can someone please advise what I can do next. I am getting worried and scared now.

GoingUnder

I have searched the forum but cannot find an answer to this.
I am 16 months into an IPA. My Son is due to start Uni in Sept, having taken a year out. He will be 19 when he starts and is dependant on me.

He won't qualify for a grant because of my salary, but the surplus salary which could have supported him all goes in an IPA.

The accomodation costs alone are £100 a week. His studnt loan does not even cover the year's accomodation costs.

Will I be able to negotiate financial assistance for him within my SOA? If so, are there any examples of what they accepted? i.e. accomodation costs? Living costs? etc.

Thanks
GU

StepChange_James

Stresseddebt wrote: »

Hi I am currently 25k in debt. Have full time job and never missed any payments. Have Mortage. Tryed to top up my unsecured loan it clear my debt and free me money monthly. Bank response was that they will loan there borrowings. This isn't helping me as I will still be 10k debt with cc and store cards. Can someone please advise what I can do next. I am getting worried and scared now.

Hello,

If your finances are causing you worry then its a good sign that you could use some debt advice. We can help you with this.

The first thing to do is visit our online debt advice service Debt Remedy (http://www.stepchange.org/msehelp) to help you find a solution to your debt problem quickly.

Debt Remedy will assist you in completing a financial statement with information on your household, employment, income, expenditure and debts. From this the service will automatically determine your options.

To help you fill in the form, it’s best to gather together information about:
• Your income
• Your expenditure
• The creditors you owe money to

You’ll receive a downloadable advice booklet providing a tailored solution for you based on your current circumstances and advice on ways you may be able to improve your situation.

If you’re not confident with computers or would like to speak to an advisor then you’re welcome to ring our Helpline on 0800 138 1111 (free including from mobiles). We’re open Monday to Friday 8am - 8pm and Saturdays 9am – 3pm.

If you phone us it may be possible to refer you directly to a debt advisor for immediate advice. Alternatively, we will arrange for an appointment to be booked at a time convenient for you.

All the best.

James

StepChange_James

GoingUnder wrote: »

I have searched the forum but cannot find an answer to this.
I am 16 months into an IPA. My Son is due to start Uni in Sept, having taken a year out. He will be 19 when he starts and is dependant on me.

He won't qualify for a grant because of my salary, but the surplus salary which could have supported him all goes in an IPA.

The accomodation costs alone are £100 a week. His studnt loan does not even cover the year's accomodation costs.

Will I be able to negotiate financial assistance for him within my SOA? If so, are there any examples of what they accepted? i.e. accomodation costs? Living costs? etc.

Thanks
GU

Hi GU,

I have to admit that I was stumped by this question. Luckily we've a team of bankruptcy experts, so one of them was able to give me an idea about how this sort of thing works.

Ultimately it's down to the Official Receiver (OR). You can contact them and request the IPA be varied to take into account the expenses involved with your son going to uni.

Unfortunately the chances of this being agreed to are quite slim. My colleague said that most ORs are quite tough on these sorts of issues and will usually expect you to maintain the IPA at the current level.

A lot depends on the individual OR though, so it's worth asking the question. Particularly as your income is factor in how much funding is available.

I'd be interested to know how you got on, if you can spare the time to post back here that would be really useful.

Kind regards

James

fermi

I would add that if the OR refuses to vary the IPA, and you think this is unfair, then you always have the right to apply to the court yourself for an order to change the IPA payments. It would then be up to a judge to decide what is fair, rather than your OR.

Maybe an option you wouldn't feel like taking, but the provisions are set down in black and white in law that allow you to make such an application if you want to.

GoingUnder

Thanks, will do.
I know when I applied for a previous change of circs they wouldn't even entertain the request until it happened. I'll write to them and see what they say, but they may not engage before the Uni starts. Will wait and see.
Court is always an option.

Thanks

GU