Step Changed advised IVA but mentioned Bankruptcy

jones160312

I have recently written a post on the IVA board as step change advised me to go for an IVA with the monthly figure of £100 but i had to cut back on things to get this £100 figure.

After soeaking to my husband, we both feel that an IVA will fail as e struggle with money at the minute without me paying an creditors (well a pound each for the past year)

Do i need Step Change to agree Bankruptcy or would it be accepted that they have advised IVA but said i could also look into bankruptcy??

We don't have any assests and privately rent. Also the debt is in my name only.

The thought that i have actually got to face up to the debt and do something is making me worry all the time because i know its a big step :embarasse

PippaGirl_2

You don't need to take the advice stepchange have given you. Do get a second opinion from another agency. How about going to your local CAB to talk to them? CAB were brilliant with advice for me.

jones160312

PippaGirl wrote: »

You don't need to take the advice stepchange have given you. Do get a second opinion from another agency. How about going to your local CAB to talk to them? CAB were brilliant with advice for me.

Thank you for your reply. I have spoke to CAB in my area but they are useless and told me to speak to Step Change as they can't help I will call NDL after the bank holiday

PippaGirl_2

You can always go to a different branch of CAB if needed. I know they vary.

tigerfeet2006

National Debtline will be fine, it's really just a case of making sure you are aware of all the pro's and con's of BR.

Meanwhile have a read of the Look Here First sticky to give yourself a start to understand and then read all the threads you can and ask questions about things you don't.

https://forums.moneysavingexpert.com/discussion/1056083

IF

Hi jones160312, I agree with Pippa and TF please do get a second opinion and here are a few links for you to read too.

* Blue text on this forum usually signifies hyperlinks, click on the blue links below *

Main recommended sources of help:

• National Debtline - Website: National Debtline Telephone: 0808 808 4000
• Citizens Advice Bureau - Website: Citizens Advice or visit your local CAB centre (find nearest)
• StepChange (formerly CCCS) - Website: StepChange Telephone: 0800 138 1111

Others:

• Business Debtline
  - Website: Business Debtline Telephone: 0800 197 6026
• Christians Against Poverty
• PayPlan
• TaxAid - Help with tax debts.

Please don’t do anything rash take your time and weigh up your options and read everything you can.


For ‘essential’ BR info the ‘Look here first’ sticky by Fermi.

BR friendly home insurance thread.

BR Friendly Bank Accounts ~ [Updated Sep 2012 re: Co-op Cashminder withdrawal]

BR Abbreviations

Beth's Guide Reasons for your BR

Charities who help with BR Fees

Bankruptcy NDL Guide

Basic Bankruptcy Advice & Guide NED CAB

And do remember we’ve all been through this and anything you don’t understand don’t be afraid to ask.


Best wishes
IF...x

darren_clarke

since you dont own, and private rent, and are stuggling with your bills now, i would go BR and take the hassle what goes with that, rather than the hassle of trying to live

National_Debtline

Hello there.

Given the information you have provided it is likely that bankruptcy would be the faster and cheaper option. You should always be fully away of the pros and cons of both options before making a final decision.

ifwisheswerehorses... has posted up our bankruptcy fact sheet, you can find our IVA fact sheet here:

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=26_individual_voluntary_arrangements

Do consider seeking as much information as possible from as many reputable sources as you wish. This can be a big step and it's certainly worth spending time making the right decision the first time.

Best wishes,

David.

Ox1987

National Debt line I wonder if I could ask your second opinion
I have posted on the Scared thread and you can see my debt is C36000 and I have a 70k 12 month contract. I am a CIMA accountant and have been told I may be able to find work after BR but not sure. I have 3 young kids and you can see my SOA on the thread but after a SC tweak it gives 253 pound to a DMP this means it would take 12+ years to pay it off assuming they all freeze interest
Would I be better going BR but this concerns me as it means losing the house and what would be the outcome then for the kids
As you may read on my thread I am very stressed out too much probably but wanted to get a second opinion

National_Debtline

Hello there,

In accordance with CIMA's Bankruptcy guidance (I found this via a quick internet search so check it's authenticity):

Under Council Regulation 13 a member or registered student is required to notify CIMA if they are made bankrupt and to keep us informed of progress (preferably in writing). Under normal circumstances (that is, if no blame attaches to you and a complaint is not being made about you by anyone) this should be the end of the story as far as CIMA is concerned. Bankruptcy should not affect your registration as a member or registered student.

This seems to imply that bankruptcy may not have a bearing on your CIMA status although do contact them directly to double check. Without going through a thorough fact find it'll be difficult to advise on the best option for you, but it seems that you're on the right track weighing up the timescales and potential implications of both routes. If you were to explore the bankruptcy route you should be given reasonable time to investigate alternative accomodation should you have to give up living in the property.

For the record many of our clients have found the bankruptcy process far, far easier than they initially thought it would be. There are plenty of threads on this forum which can reinforce that fact. Making a fresh start can be a very liberating experience - but making the correct decision is paramount when deciding on where to go from here. Do take your time to do as much research as possible, lots of great information here:

www.bis.gov.uk/insolvency

Best wishes,

David.

Ox1987

Thanks David I think my main concern was housing/food for the kids as if we were made homeless due to a BR then where would we live. I also worry about interest rates rising that would blow our DMP budget, we are trying to get some money together to debt bust it lower and quicker but we want to make sure that I can get continued employment first.