Bankruptcy v IVA advice? £65k in debt!

danno_4

TTMCMschine wrote: »

If you already owe so much money & are having to consider bnkruptcy or an IVA then I hardly think its a good idea to be looking to take out a mortgage.

What you're essentially wanting to do is to wash your hands of one load of debt & have the creditors swallow the losses, whilst borrowing a load more money from someone else to carry on your lifestyle without paying back what you've spent.

People just seem to have an odd mentality these days, where they want things & even if they can't afford them (like your new house) still go ahead anyway.

You might *want* to stay on the property ladder, but I think that trying to find a way to do it by discharging your other liabilities so that you can afford it is wrong, & I think it means that you haven't really learn't anything.

Sorry.

I think what you are saying is very unfair,this person is looking for advice on what looks like a very worring affair,they need help to sort there selves out
not a lecture on rights and wrongs,i personaly work in insolvency and see quite a lot of these sort of problems,The world we live is the cause of most of these problems,offering all sorts of loans and it's quite easy to get drawn in.how many letters do you get in a week offering you loans and credit cards,yes it's very easy to get drawn in.so please if you have any advice for any one please keep it to yourself.
regards
danno

TTMCMschine

danno wrote: »

The world we live is the cause of most of these problems,offering all sorts of loans and it's quite easy to get drawn in.how many letters do you get in a week offering you loans and credit cards,yes it's very easy to get drawn in.so please if you have any advice for any one please keep it to yourself.
regards
danno

No. I won't be keeping my opinions to myself. Sometimes people need to hear things without the fluffy niceties. If the OP goes ahead with another mortgage then he will, in all probability, end up with even bigger problems than he has now, so if it makes him think about it a bit more then all the better.

As for the World we live in being responsible, if you want to absolve people of any responsibility for their own actions then perhaps it's an argument that you might promote, but expressing the opinion that everything that happens to someone is the result of someone elses fault or as a result of uncontrollable external forces is neither constructive, helpful, nor useful.

verderci

TTMCMschine wrote: »

"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.

You should be ashamed of yourself giving this girl a hard time - if you have been in debt yourself you should know how hard it is to come clean and ask for help. Who are you to judge others morals? You don't even know how these people ended up in debt. These threads are here for support - if you can't give any, shut up!

verderci

TTMCMschine wrote: »

No. I won't be keeping my opinions to myself. Sometimes people need to hear things without the fluffy niceties. If the OP goes ahead with another mortgage then he will, in all probability, end up with even bigger problems than he has now, so if it makes him think about it a bit more then all the better.

As for the World we live in being responsible, if you want to absolve people of any responsibility for their own actions then perhaps it's an argument that you might promote, but expressing the opinion that everything that happens to someone is the result of someone elses fault or as a result of uncontrollable external forces is neither constructive, helpful, nor useful.

Danno - I'm with you TTMCMschine..........move threads.

verderci

melf wrote: »

Whats SOA???

Don't have any great solutions but sending hou a hug XXX

danno_4

Hi,
just to start ignore TTTMC Coments i understand your situation,i work in insolvency so are aware of what you face,May i say that your debts are quite high,I think an IVA would not be of any good to you,It is a very exspensive way of dealing with debt.Bankrupcy is something i personaly try to avoid.Now i know you would like to remain on the property ladder but first of all you need to do what is right for you in your present predicument.Now knowing some of your debts they are all unsecured,You have no assets at all.If you decide to pursue and obtain a mortage if you did go bankrupt providing there was no equity in the property then that would be ok,so the 100% mortage is spot on.That then leaves the little problem of the debt.I think what i would do would be to let things settle.I would not make my self bankrupt.Wait and see the response from your creditors.i know you want the problem resolved asap but your circumstances are to wait for one of your creditors to move!I have known people to invite creditors to make them bankrupt and all have declined but i cannot advise you to do that if you knoe what i mean.
good luck
danno

makingendsmeet_2

I must say some people on here are moral do gooders. If you have taken the advise of 2 IP's and they say your best option is to declare yourself bankrupt, then I would take their advice. If you would prefer to buy rather than rent, then do so. If you have no equity in your property bankruptcy won't effect it, although unless you obtain a 100% mortgage then your deposit will of course be some equity. Renting is not as long term as it used to be and you have to be prepared to move around abit, which is stressful in itself.

You will find that there are alot of people who are despartly trying to pay back money that they owe. Some will be doing it for moral reasons, others will be doing it because bankruptcy isn't the best way out for them and then there is the worst offender of all the one who has never and will never be in debt in their lives. The latter is by far the worst of your trolls as they have either (a)never been in the "I have lost my job or became unable to work, so its starve the whole family and sell the house or live off the credit card " situation (b) have been fortunate enough to have plenty of money to start with through family, good jobs or just good luck.

I would advise the facts are that once you purchase a house then you can include the full amount of your mortgage on your expenditure in banckruptcy or an iva and this will not be frowned upon by the offical reciever of your creditors as this is an essential outgoing. Payplan the CCCS and the CAB are all free and will only give advise thats best for you and not just YOUR CREDITORS. Try reposting on the bankruptcy board rather than here and the trolls won't be saying "whos that trip trapping on MY BRIDGE"!

livinginhope

I don't see any trolls just people talking from their own experiences.

melf_2

danno wrote: »

Hi,
just to start ignore TTTMC Coments i understand your situation,i work in insolvency so are aware of what you face,May i say that your debts are quite high,I think an IVA would not be of any good to you,It is a very exspensive way of dealing with debt.Bankrupcy is something i personaly try to avoid.Now i know you would like to remain on the property ladder but first of all you need to do what is right for you in your present predicument.Now knowing some of your debts they are all unsecured,You have no assets at all.If you decide to pursue and obtain a mortage if you did go bankrupt providing there was no equity in the property then that would be ok,so the 100% mortage is spot on.That then leaves the little problem of the debt.I think what i would do would be to let things settle.I would not make my self bankrupt.Wait and see the response from your creditors.i know you want the problem resolved asap but your circumstances are to wait for one of your creditors to move!I have known people to invite creditors to make them bankrupt and all have declined but i cannot advise you to do that if you knoe what i mean.
good luck
danno

Thank you so much for your response, and to all the others who have posted overnight. I really am in a mess and this whole thread hit me hard yesterday. Thats no to say that I wasn't already in a crap way! I know that a certain post was pretty mean towards me, they really do not know my circumstances. I accept fully that I am responsible for getting into this debt, as it was happening I was scared but we had to get the house finished to get the best price and that meant spending more. In hindsight I should have put my hands up and got out earlier but I was so desperate to try and claw back as much money in the house sale that I couldn't let it go. Then along side that were personal problems. Bereavement does strange things to people, some people don'e eat, some get fat, some won't go out, some want to go out and drink and spend money - anything to avoid facing reality. I can't turn back the clock. I feel ashamed and guilty for getting in this mess but now I need to deal with it and I just want help.

Anyway, thats my emotional bit over! I rang CCCS and Payplan last night but can't get an appointment until 2 weeks time. Payplan said they would like to speak to me after the house sale as they will have true costs to deal with then. Both very nice people and I wish I had spoken to them months ago. I will try national debt line tonight.

So you think I should just sit tight until we have purchased the house and then look into what to do? I am normally so organised (don't laugh), it worries me not knowing what might happen. BR is such a scary prospect but I deep down wonder if that is the best thing for us? You are the 5th proffessional (in this field) to perhaps suggest it which means thats the route we should really be taking. We got ourselves in this mess so we have to accept the consequences of BR.

livinginhope

Hi again melf
If you are determined to proceed with the house sale,then I think going BR is wrong,just my opinion,but that's how I feel
You have a good income,how does buying the house and then entering into a DMP sound to you? you will be left plenty to live on and then pay what is left into the DMP,your debts will be paid off (eventually) you are still on the property ladder and you avoid bankruptcy,as Hypno says,the IPs and IFAs stand to make money out of you going BR,they won't get anything recommending a DMP.
I would do as Payplan says,but book that appointment with them even if all figures aren't finalised,they could still go through ALL options with you,when they first heard our figure of debt they suggested BR,but when all the nitty gritty was sorted out,they recommended a DMP,we live a comfortable life and I would say we are the best off we have been in a few years.
Good luck with the call to National Debtline,I'm sure they will be able to help you.
LIH