£75k in debt. (bankrupt v iva v payplan?)

naughtynige

I owe around £75k, mixture of loans and credit cards. I owe 8 companies the money, 6 of which i have defaults or ccj. I have zero cash left come the second of each month, should I just go bankrupt, enter into an IVA or use someone like payplan. CAB said debt was to big for them to handle!!!!,,cccs were not helpful at all, and a 'proper' counseller cant call me back for 5 more weeks!!!

Money_Man_Steve

Have a look at the section marked 'Debt Counselling' in Martin's article here: http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1094132767,59163,

I used National Debtline myself (although admittedly about 14 years ago) and their comprehensive info pack gave me all the info and advice that I needed to handle everything myself - how to work out a realistic budget and make offers to creditors, etc.

I don't know much about bankruptcy laws and the pros and cons of declaring yourself bankrupt, but I would advise against using any kind of company to 'manage' the debts for you. To the best of my knowledge these kinds of companies can't do anything that you (or a charity advice service) couldn't do, and they take a cut of your repayments for their trouble - this is money that you could be using to reduce your debt more quickly.

Good luck - it's a hard struggle but you'll get there in the end.

Money Man Steve

Alias_2

Don't choose an IVA! These are a rip off. Most IVA's (cost your more and) end in Banruptcy.

Before you decide anything I 100% recommend you join the Bankruptcy Association https://www.theba.org.uk

It will cost you £15 a year and you can speak direct on the phone to the founder John McQueen.

I also recommend you purchase two books from his web site.

1) Bankruptcy Explained (make sure is new edition)
2) How to settle debts with crteditors

Once you have joined you are given Johns direct tel number. You can phone him whenever you want. Onve you have spoken to hik you will feel 100% better.

Even though it is called 'The Bankruptcy Association' it is not just for people in Bankruptcy. You will be given advice on how to avoid Bankrupycy and and IVA.

Any queries PM me.

Good luck and what ever you do take control of the situation and don't worry.

Debt_Free_Chick

There's good free information about bankruptcy here

(quick guide)
http://www.nationaldebtline.co.uk/england_factsheets/factsheet_01.php3

and here (comprehensive guide)
http://www.insolvency.gov.uk/information/help/considerbankruptcy.htm

With no offence to Alias, if you have money problems, don't incur extra expenditure - so look at the free stuff before you decide you want to part with money to get information.

The folk at National Debtline will also give free advice over the telephone. It's even a free number 0808 808 4000.

Make a start by using the free Self Help Pack here

http://www.nationaldebtline.co.uk/england_factsheets/debt_advice_england_wales.php3#3

Pal

Alias wrote:

Don't choose an IVA! These are a rip off. Most IVA's (cost your more and) end in Banruptcy.

Before you decide anything I 100% recommend you join the Bankruptcy Association https://www.theba.org.uk

It will cost you £15 a year and you can speak direct on the phone to the founder John McQueen.

I also recommend you purchase two books from his web site.

1) Bankruptcy Explained (make sure is new edition)
2) How to settle debts with crteditors

Once you have joined you are given Johns direct tel number. You can phone him whenever you want. Onve you have spoken to hik you will feel 100% better.

Even though it is called 'The Bankruptcy Association' it is not just for people in Bankruptcy. You will be given advice on how to avoid Bankrupycy and and IVA.

Any queries PM me.

Good luck and what ever you do take control of the situation and don't worry.

Perhaps I am being cynical but the above seems to me to be an obvious plug for the website, probably posted by its founder. Independent information on bankruptcy is available FREE from the links provided by DFC in the post above.

At the very least, advising someone in severe debt to join a fee paying site and buy books from it is dubious advice.

Reported to abuse controller.

Murtle

I agree with Pal!! naughtynige, good to see you've posted it here. There is a mine of information here, especially from debt-free-chick. Follow her advice and understand where you're money is going and where money can be saved. If bankruptcy isn't your preferred choice of action, this website will help you get clear in the end. wishing you all the best.

Murtle

jen_jen_2

the court service do a more than adequate guide to bankruptcy and its free. Dont pay for information that is free. If the book is that good it will be in the library (free).

Bankruptcy V iva V management plan?

To begin..
Do a budget, how much available income do you have to pay creditors?
How long will this take to clear the debt?
Do you have assests?
Do you want mortgage etc in the future?

You need to do some serious thinking, Bruptcy is a good solution for the right circs. Post some more details and we'll have a look but also make sure you do some of the research, read the guides, why do you overspend etc etc.

Alias_2

Re comments my previous post.

1) I am not connected in anyway with the Bankruptcy Association.

2) I am just a member and I recommed it.

3) Search Google newsgroups for independent advice on joining the Bankruptcy Association.

http://groups.google.co.uk/groups?q=bankruptcy%20association&hl=en&lr=&client=firefox-a&rls=org.mozilla:en-US:official&sa=N&tab=wg

Pal

Apologies Alias. We get a lot of first time posters recommending subscription websites around here!

I stand by my point that there are many free resources for people in financial trouble which should be investigated before someone joins a paying website for assistance with their debt. It is good to know that it worked for you though.

Alias_2

Pal,

(yes first time poster on here, but I have posted a few times on http://www.saynoto0870.com/ with the same username)

I agree free advice can be good. But why is it free? Someone must be paying for it.

http://www.payplan.com/faq.html

If Payplan is free to me who is paying?

Payplan is paid for by the credit industry who believe people should have access to free help with debt problems. This means we can offer you a free service with no management fee. This then means that 100% of your repayments go towards reducing your debts.

Lots of these free debt advice things are subsidised by the credit industry and FSA.

Thus the advice can never be truly independent and the debtor may not get the best advice.

I think £15 for one years independent advice from the BA is good value. They have helped me.

National Debt Line is part of http://www.moneyadvicetrust.org/ and they are funded by......
Abbey
Alliance & Leicester plc
Allied International Credit (UK) Ltd
American Express Foundation
Argos
Barclaycard
Barclays Bank plc
BMW Group Financial Services
Bradford & Bingley
Bristol & West
Britannia Building Society
British Bankers' Association
British Gas (here to HELP)
British Telecommunications plc
Building Societies Association
Building Societies Trust Limited
Capital One
CPP Group Plc
Centrica plc
Centrica Personal Finance
Chelsea Building Society
CHK Charities Limited
Citifinancial Europe plc
Citizens Advice Scotland
Clifford Chance
Clydesdale Bank
Consumer Credit Counselling Service
Council of Mortgage Lenders
Coventry Building Society
Credit Services Association
Department for Constitutional Affairs
Department of Trade & Industry
Dunfermline Building Society
EDF Energy
Egg
EquiDebt Ltd
Experian
Finance & Leasing Association
GE Capital Bank Ltd
HBOS plc
HFC Bank plc
Hitachi Credit
HSBC Bank plc
Intrum Justitia
Legal & General plc
Lloyds TSB Group plc
Mail Order Traders' Association
Marks & Spencer Money
MBNA
Morgan Stanley
Mortgages plc
National Australia Bank Group
Nationwide Building Society
NatWest
Northern Bank
Northern Rock
Norwich & Peterborough Building Society
Paragon Personal Finance
PayPlan Ltd
PowerGen Energy plc
Provident Financial
Scottish Executive
Scottish Power
ShareGift
Skipton Building Society
Southern Pacific Mortgage Limited
Swift Advances plc
The Inverforth Trust
The 29th May 1961 Charitable Trust
The Michael & Anna Wix Charitable Trust
The Puri Foundation
The Rowan Charitable Trust
The Royal Bank of Scotland
Three Valleys Water
United Utilities
Wescot Credit Services
WWWATT Ltd
Yorkshire Bank
Yorkshire Building Society

Debt_Free_Chick

Yes - there are many genuinely free debt helplines that are funded by the lenders. Despite claims that they (lenders) are all money-grabbing, unscrupulous rip-off merchants, they recognise that those who get into difficulty need real help.

Payplan, CCCS & National Debtline operate completely independently of the lenders. If you looked at the National Debtline website, you'd see that they clearly defend consumer rights and even publish legitimate strategies to fend off the shenanagins of the lending industry. Take a look at the Self Help pack - ND warn those in debts of the tactics that lenders employ to "trick" you into paying more than you can afford. And then they tell you how to deal with them.

To be clear, these are genuine, independent, free debt advisers/counsellors. Although, indirectly, their funding comes from the lending institutions.

Just as when one is in a whole one should stop digging, those in debt need to stop spending