Bankruptcy v IVA advice? £65k in debt!

DramaQueen29

We are in a similar situation, we could go BR but decided against even though our debt is severe because of the long term effects.
IVA will basically drain us for 5 years and i doubt we would be successful as the payment would be very high each mnouth plus i have some of the creditors that are outright refusing them.

So we have deicided to stay renting, sell as much stuff we dont need and then make payment offers to all the companies, ie : a debt of 3k we would offer 1.5k

There are other ways of doing it and companies out there will tell you you cannot do it on your own, well it is doable to manage your own DMP and i tell you what we feel so much more in control.

Its not for everyone but we have decided to go it alone because although we had no stress with a third party eg cccs dealing with the debt we didnt know where we were with it/ if interest had stopped/what the bill total was, so although my statement each month told me i was paying off x amount of a 18354 loan that was the figure i gave at the beginning of the dmp plan it may no longer be the actual figure including the interest!

HTH a little

BettiePage

melf wrote: »

Hi everyone,

Can I just defend myself by saying that the amount I'd pay out in rent is exactly the same as the amount I'd pay in mortgage.

A repayment mortgage?

melf_2

One of the other reasons we want to buy is that we get money back from our mortgage company. We paid £4000 in redemption penalty when we sold and so long as we complete on a new place we get that back. This has alwys been intended to go back into our debt.

That means that we will have paid back 52000 back into our debt by selling the house and this extra cash. I don't see that as shirking our responsibility with our creditors. If that was the case we would have not sold our house in the first place.

I will look into the DMP and obviously give it a lot of consideration. I have spoken to two financial advisors and two IP's so I am only acting on the advice I have been given. They have all said that there would be no difference in us renting or buying in the financial sense so we should take that route. I understand about repairs, we have looked for a house that is in as good order as possible so that we can avoid as many house problems as possible.

I'm a bit shocked that everyone on here has reacted so badly to what we are doing. We didn't just wake up today and think "I know lets go bankrupt" this has taken months and months of thought and sleepless nights. We don't want to go BR, advisors have recommended this along with IVA. The IVA will mean we pay back more to the creditors so thats better for them. I only came on here for advice, not to be made to feel worse than I am already.

melf_2

repayment mortgage

hypno06

We are not "reacting badly", the people here are trying to give you support and advice from their side of the fence, which may be different to things you are told by IPs and IFAs.

We have all been there and done that with the sleepless nights, the stress and the constant worry that affects our health. That is why we are able to say what we say. We too are living with it one way or another every single day.

So we are not trying to push you into doing one thing or another, merely trying to tell it as we see it, having a little experience of it ourselves.

TTMCMschine

"The IVA will mean we pay back more to the creditors so thats better for them. I only came on here for advice, not to be made to feel worse than I am already."

Whats best for the creditors is to be paid back in full - you are not doing them a favour, as you seem to think, by only discharging half of the money you spent.

As for your £4K cash back from the mortgage, i think i can see why you've ended up in trouble:

Renting & the debt = £65K

Buying & the debt = £65K-£4K = £61K - Great!






Not really because you need to also consider: £61K + £123K = £184K

Even if you could "lose the £65K you're still going from £65K to £123K.


What you are saying is that buying is better financially because you'll be making an "investment" & will hopefully end up making money from it in the long run, but in order to do that you need to default on the £65K.

Thats a really neat investment trick, I really ought to try it. I put my own money up & if I lose it then I suffer the consequences. If I borrowed £65K & lost it I could just go bankrupt, shrug my shoulders, & borrow £123K off someone else to try a different investment.




The mind boggles at some peoples one sided & totally skewed view of what is morally acceptable.

Bestthingsinlifearefree

melf wrote: »

I'm a bit shocked that everyone on here has reacted so badly to what we are doing. . I only came on here for advice, not to be made to feel worse than I am already.

Nobody has reacted badly to what you are doing.

They have given you their advice i.e rent at the moment rather than take on another £123,000 in debt.

I guess do you want to listen to neutral, independent advice or would you prefer if people said what you would like to hear?

How about? "Yes go and take on another £123,000 extra in debt.what a wonderful move to do when you are already heavily in debt".

Just because the advice you got is not what you wanted to hear does not mean it is bad advice.

I wish you well. Keep looking at your options.

Mr_Blek

************************Hugz************************

melf_2

Shrug my shoulders? Are you joking? I haven't ever thought that. I know full well that whats best for all the creditors is to get every penny back. What I am saying is that faced with the options we have been advised on it would be better for our creditors to get back as much as poss through the IVA than less through BR. (until today's info on DMP's - which may be good for us? I don't know, its never been mentioned by IFA's or IP's. I'm open to what I'm told about, but why haven't I been told about this if it might work for us??)

Maybe I am being totally stupid but if we are paying out the same amount each month in rent or mortgage why is it so terrible to try and do the mortgage? I know you are saying that we are taking on more credit, mortgage of £123k but the outgoings are the same. We always paid our mortgage, again as advised by IFA as that was the most 'important' debt. Maybe I have met bad IFA's I don't know?

melf_2

Look, I'm not wanting to hear anything in particular. I've just acted on what I've been told to do regarding housing. It seems I've been advised badly. This is somethign that we need to discuss asap. I'm very stressed and know you have all been there too. I'm close to tears just reading this thread. I've always been responsible in life, we got into a real mess and I suppose want to salvage our home if possible because its all we'll have. We aren't extravagent. We aren't like that and I hate feeling like thats what people think on here.

We were naive when we bought our last house, didn't look into the problems that the house had so it cost a fortune to renovate. Doubel what we budgeted. Then my partners mum died suddenly and we lost control of everything. We spent money trying to cheer ourselves up, we spent more and more on the house (not holidays or clothes) trying to make it a nice home for us. But things were already out of control at that point, it just got worse and thats we knew we had to sell up to reduce this debt.