£65k debt - Bankruptcy v IVA

gettingitsorted

melf wrote: »

Thats wonderful to hear! The stigma is the worst thing that i fear. I've got to the pint now that I really don't care half as much about owning a house as I did a few days ago - thats one hurdle jumped!

Thank you all so much for yor support. Things are much better on the other board now. To be honest it was just one person that was really sarcastic towards my problems. Obviously someone who has been lucky in life and cannot empathise with me at all. Thats not his fault but perhaps he shouldn't judge so freely because no one knows what might happen to them one day.

Glad you seem to be getting on a bit better Melf ,just remember we are here if you need us

Richard_S

melf wrote: »

Thats wonderful to hear! The stigma is the worst thing that i fear. I've got to the pint now that I really don't care half as much about owning a house as I did a few days ago - thats one hurdle jumped!

Thank you all so much for yor support. Things are much better on the other board now. To be honest it was just one person that was really sarcastic towards my problems. Obviously someone who has been lucky in life and cannot empathise with me at all. Thats not his fault but perhaps he shouldn't judge so freely because no one knows what might happen to them one day.

Hi melf,

You sound a lot more positive than you did yesterday and I really am appalled by the narrow mindedness of some people that posted on your DFW thread.

As far as accomodation is concerned there is no right and wrong thing to do unless you've got a fully functioning crystal ball. If house prices continue to rise as they have in the last 15 years you'd be better off buying a property. If prices drop, you'd be better off in rented accommodation; but who knows what the market will do? The only real benefit to owning a property is that you know you won't get "kicked out" providing you maintain your mortgage payments.

Hope you have a better day today,

Richard

Richard_S

blind-as-a-bat wrote: »

mind elsware melf its a bit early :rotfl:
Just bear in mind that the ones who who look down on us are probebly jealous because they are in just as bad a position but are not brave enough to admit it!;)

Succinctly put Bart,

Yipeeeeeee, I'm debt free :rotfl:

straightandnarrow_2

I just want to reinforce what everyone else was saying melf - here is a great place to get support. I went BR over 3 years ago and believe me, I think I would have gone over the edge if I hadn't. Your health is so much more important than owning anything. When you walk out of a BR and know the creditors can't do anything anymore - that is a priceless moment!
Do what you feel is right for your health and wellbeing and like everyone said take good professional advise first.Good Luck;)

Richard_S

Good morning melf,

After reading your posts I think you should approach the situation as follows.

Firstly, I know you’ve spoken to Insolvency Practitioners but I would still take the time to speak to one of the debt charities. They have no vested interest and offer professional advice that genuinely reflects the individual’s circumstances.

Secondly, make a decision on what you intend to do with regard to housing. If you intend to purchase another property, now would be the best time to do that. If you ultimately decide to declare bankruptcy you won’t be able to get a mortgage until you’re discharged and even then you’ll almost certainly pay a couple of %age points higher than the high street bank average.

Thirdly, make a decision on what you intend to do with your debt. My personal opinion is that an IVA would be too demanding and you’d be stuck with that for five years and the effect on your credit rating is almost the same as bankruptcy.

I would guess the biggest problem you’re facing from a personal perspective is how to repay the money to your parents. If you take either the IVA or bankruptcy route you won’t be able to show any preference to your parents in terms of repaying the money.

Assuming you decide on bankruptcy, an IPA would be calculated as follows. Your income is £2,300 per month and assuming your essential outgoings are £2,000 per month then out of that surplus £300 you’d be expected to pay £180 per month into an IPA. Obviously, if your expenditure is greater than that you’d pay proportionately less. If you then chose to pay that £120 to your parents for the remainder of the IPA you’d be doing nothing wrong. Once the IPA has finished you’d be able to increase the amount in line with your circumstances at the time.

Student Loans are not included in bankruptcy so whatever you choose to do they’ll still be there. That is not the same for your other debts. The loan from FirstPlus and all other loans and credit card debts will be wiped out.

I hope this helps a little,

Best regards

Richard

melf_2

Richard_S wrote: »

Good morning melf,

After reading your posts I think you should approach the situation as follows.

Firstly, I know you’ve spoken to Insolvency Practitioners but I would still take the time to speak to one of the debt charities. They have no vested interest and offer professional advice that genuinely reflects the individual’s circumstances. Good afternoon, I have tried to speak to CCCS and Payplan but both can't speak to me until 14th May and after. I will try them again though because some one has mentioned that they spoke to an advisor with a day or two.

Secondly, make a decision on what you intend to do with regard to housing. If you intend to purchase another property, now would be the best time to do that. If you ultimately decide to declare bankruptcy you won’t be able to get a mortgage until you’re discharged and even then you’ll almost certainly pay a couple of %age points higher than the high street bank average.We are going ahead with the mortgage, its all in place and if I'm honest I don't want to throw that chance away. If for some reason the sale does not go through then so be it and we will go into rented.

Thirdly, make a decision on what you intend to do with your debt. My personal opinion is that an IVA would be too demanding and you’d be stuck with that for five years and the effect on your credit rating is almost the same as bankruptcy. Thats the problem Richard, we don't know what to do really. Deep down I don't think we can afford the IVA, I spent hours looking at our SOA last night and the figures are slightyl worse than the one I posted (on the board that caused chaos!) There are things that I will try and reduce, at the moment though I've just bsaed it on what the outgoings actually are now - is that right? The only way we can afford the IVA is if my boyfriend can work enough overtime each month. Might work out fine but o/t is always guaranteed is it?

I would guess the biggest problem you’re facing from a personal perspective is how to repay the money to your parents. If you take either the IVA or bankruptcy route you won’t be able to show any preference to your parents in terms of repaying the money. This is a major problem, I cannot stop paying my parents, I should never have accepted the loan from them. I feel so guilty about this its untrue. They cannot afford to just take on this debt, they have both been properly ill, one is still recovering from surgery to remove tumour from spinal cord. They have their own stresses without me doing this to them. So is there any way round this payment in an IVA or BR?

Assuming you decide on bankruptcy, an IPA would be calculated as follows. Your income is £2,300 per month and assuming your essential outgoings are £2,000 per month then out of that surplus £300 you’d be expected to pay £180 per month into an IPA. Obviously, if your expenditure is greater than that you’d pay proportionately less. If you then chose to pay that £120 to your parents for the remainder of the IPA you’d be doing nothing wrong. Once the IPA has finished you’d be able to increase the amount in line with your circumstances at the time. I think thats fair, to be honest they can take whatever they want if it means we have some sort of life again. We know we have to pay something.

Student Loans are not included in bankruptcy so whatever you choose to do they’ll still be there. That is not the same for your other debts. The loan from FirstPlus and all other loans and credit card debts will be wiped out.Ah well, least of our worries really, can't expect everything

I hope this helps a little,

Best regards

Richard

Thanks for everyones help