Bankrupcy Question - Bit Weird?

jaysancort

Thanks for all your input, appreciated. I am in one of those catch 22 situations. go Bankrupt and be in a world of pain, stay as things are and remain in a world of pain.

I looked at DRO and I cannot do those because I have less coming in than going out eg minus money.

What are peoples thoughts on IVAs, how do they work - I really need this debt gone and my file in better shape

tinkerbell28

jaysancort wrote: »

Thanks for all your input, appreciated. I am in one of those catch 22 situations. go Bankrupt and be in a world of pain, stay as things are and remain in a world of pain.

I looked at DRO and I cannot do those because I have less coming in than going out eg minus money. Why? Surely you meet the criteria if less than 15k

What are peoples thoughts on IVAs, how do they work - I really need this debt gone and my file in better shape

Look, whatever you choose. IVA, DRO, BR. It is ALL a legal form of insolvency.

So none will put your file in better shape as they are the ultimate black marker for 6 years.

Plus DRO's are now on the list of HAVE YOU EVER questions for financial checks. It is usually worded "Have you EVER applied for a DRO, IVA or bankruptcy".

What line of work are you looking at?

woodformoretrees

does it ask if you've applied for bankruptcy or IVA, or if you've been bankrupt/IVA in general?
I only ask because technically if someone else applies for your bankruptcy does that make any difference at all to that question/answer?

I think that OP needs to accept that, sadly, other than paying off the debts there isn't going to be a quick or easy path to sorting his credit file.

Could the sale of the house not pay off your creditors in full and give you a fresh start, this avoiding bankruptcy/IVA if this is the important factor for your future?

longtermplanner

jaysancort wrote: »

I looked at DRO and I cannot do those because I have less coming in than going out eg minus money.

If you have less coming in than going out then bankruptcy doesn't solve this problem!

What are peoples thoughts on IVAs, how do they work - I really need this debt gone and my file in better shape

If you have less coming in than going out, how are you going to find the IVA payments each month?

It sounds as though selling the house is the best option. In this case the sooner you face up to it the better.

DRO, bankruptcy and IVA will not solve your fundamental problem of lack of income.

DEBTMONKEY1A

1stly...agree with posters on here re: credit file-knackered for 6 years. BUT...if you get a CCJ/DEFAULT-your credit file is STILL for all intents & purposes 'knackered'.

'lets face it-bankruptcy is the ultimate black mark'.

What absolute rubbish! In the dark ages-YES-but there is nowhere near the stigma attached as there was before. I went BR over 6 years ago (best thing I ever did-forget the moral crusaders-for me to get rid of my debts STRAIGHT AWAY & also to look after my own health-it was the best, easiest thing to do) & HAVE mentioned it to employers & indeed beeen employed. The posters on here though are right in that applying for new credit/or information showing on your file-it will be on there for 6 years. Like I said-a CCJ/DEFAULT whilst not as 'serious' (if you can use that word) as BR will still affect your credit files or any employer search. Not ALL employers do credit searches anyway...& in my opinion (& experience advising people) a lot are 'public record' searches ONLY pick up BR & CCJ'S. Its highly unusual (ulness banking/security services/police etc) to do a FULL credit search. You could anyway ask before applying if a full search is done.

Why not go BR?? You're on benefits-YES so discharge would be 12 months as you have NO DISPOSABLE INCOME. ALL DEBTS GONE-no comeback-line in the sand. YES-THE equity in the house would be considered an interest to the receiver (the guy who handles your case)-but if you handed your keys back to the lender at time of BR then EVEN if there was NO equity in the house-the 'debt' (shortfall when house sold)-would be written off in the Bankruptcy. You'd need to find somewhere else to rent-obviously before any bankruptcy. It's frowned upon but the £750 fees for the bankruptcy-whack em on a credit card if you have not ogt them. Yes-it's against the official rules but in my opinion (& experience) its
'tutted at' (!) but no action would be taken. Debt can affect your mental health-there is no shame at all in going bankrupt-IT IS NOT A STIGMA (although a lot of people on MSE will think you are the devils spawn if you do it -they have 'moral' issues with people going BR???!)-its a good easy way if it suits you to start again.

Just my 2pennethworth.

As the other posters have said-do the debt remedy (google it) for stepchange debt charity-they are great-call them for free advice.

Any more info you need just post.

P.S.-Just reading your posts again-world of pain is WRONG! 1 year 'pain' if you go BR , 6 years if IVA. IN MANY CASES YOU'RE DISCHARGED FROM br AFTER 6 MONTHS IF ALL IS STRAIGHTFORWARD. irrespective of moral viewpoints-DEBT IS NOT A CRIMINAL OFFENCE in this country. Look after yourself & your mental health. If DRO doesn't fit-IVA won't either (you have to pay an agreed figure monthly for 5-6 years). Even if you go BR & keep the property (if you can give keys in-truly a fresh start)-you have the option (or your partner)-to 'buy' the interest in your house & keep it. Do consider BR. 'World of pain' gone in 6 months to 1 year!

By the way...ignore any troll replies about 'br mot being moral' 'pay your debts' blah blah blah-the most important thing is YOU & your health.

JimmyTheWig

DEBTMONKEY1A wrote: »

I went BR over 6 years ago ... & HAVE mentioned it to employers & indeed beeen employed.

Presumably, though, they were not employers who were intent on credit-checking all applicants?
The OP is being turned down for jobs because of his credit file.
Surely you agree that going bankrupt will not _help_ his credit file?
If he's being turned down now because of his credit file, he will still be turned down if bankrupt.

DEBTMONKEY1A

100% agree-but was not sure as to IF OP was turned down-rather that they THINK they'd be turned down.

Ulness its Banking/police/security services etc if the OP gets proper advice from a charity then if they are 'upfront' to any prospective employer (the employer will in my opinion see that the OP is taking responsibility by getting the proper advice) it will surely do no harm or indeed help them. Didn't stop me at all getting work (& 2 previous jobs involved banking/credit card authorisations etc).

DEBTMONKEY1A

They said 'we my search the files' blah blah...but I was upfront & no issues.

If the OP does go br, if they are upfront with employers-stating they had the correct advice from a free debt charity-can't do any harm...in fact it will show they've recognised the issue & faced it. Worked for me!

PS. Sorry-sort of duplicated lol (!)

jaysancort

The employment issue - I have gone for jobs I have done in the past, got through interviews but have seen a distinct change in attitude and approach once they do a credit check, then comes the excuses as most are not up-front about the reason why you are not offered a position. I have actually had some be totally honest and say we cannot progress you application as you have failed a credit check.

I have been a retail manager for most of my life, I currently work / off sick from a Finance company. It just seems that employers have gone totally overboard in the past 2 years with credit checks.

End result is I'm stuck in a job I hate (hence the sickness) cannot get a job elsewhere, have even been turned down work in a call centre at min wage.

Appreciate DMonkeys take on things, I just want rid of it all and if my file is screwed now its going to be screwed anyway and in all scenarios its going to effect employment.

Looks like Im going to become someone with a lot of skills and a lot of experience in what I do ending up on the dole because of past mistakes with credit. Its a mad crazy world - I should be a banker in the city.

DEBTMONKEY1A

Hi! I hope you don't mind me saying....but are you suffering with depression or any other MH issues??? Your tone of writing suggests this...please please don't be offended if you're not!

ok...I've been in nearly the same situ as you. Specifics Iwouldn't want to give on a public forum.

Long & short of it is...(& THIS IS THE BLUNT BIT)...your credit file is !!!!*d....& irrespective of what happens from now (ie CCJ or BR)...its still !!!!*D! For 6 years....

I appreciate you say your life is 'screwed now'...but it really is NOT. Look at what you've got...(house etc)...not what you haven't. Sorry to sound preachy (& I hope no offence caused) but I felt exactly the same & was prescribed some anti-depressents (absolutely 100% NO shame in this) at the time.

SO...how to improve things. DITCH THE DEBT-go BR.

Worse scenario? You lose the house...but there are guidelines (sent you a PM with a link to an expert on this who helped me at the time) as to how long before hose sold...etc. Thats the WORST scenario. Other 2 scenarios are buying the interest yourself from the BR people (official receiver)....OR renting a house (do before BR-put in partners name if debts are in your name) & giving back keys.

The £750 for BR fees? Many will shoot me down for this (but as stated Official receiver is used to it)-max out a card-take a payday loan-whatever you can to get the fees (there are some charities that also help-google them). Worst you'll get is a ticking off (none of this is criminal & could land you in jail!)-very very worst situ is a BRU (term means an extra 'note' on your credit file to say that you were a bit 'naughty' with raising fees) which Inmy personal experience (ahem!) & those I've advised will be 3 years-I'd guess max 6.

The benefits

ALL DEBTS GONE-STRAIGHT AWAY ON DATE OF BR

NO COMEBACK ON DEBTS-ALL GONE ON DATE BR MADE

FRESH START

PEACE OF MIND

CHANCE TO START AGAIN

downsides

YES- harder to pass credit checks-but be upfront

1-2 hours of your life talking to the Official receiver (Br rep)-usually by phone-sometimes in office-once done-THATS IT-BR OVER!

If on paper your income is MINUS your outgoings (any good debt advisor will advise of ALL you can put down on income/expenditure)...ie you've 'minus; money left...you pay no MONEY MONTHLY to BR people-& you are discharged in a year...more often than not early (6-9 months)-but max a year. So maybe for a year stay on SSP or claim benefits/work part-time-if at any time during the year before discharge circumstances change & you have excess money left-you pay this for 3 years. WHY BOTHER???! Get it done asap.

Hope this helps-pm'd you a link to an expert-send him all your circumstances-he'll advise. he'll also be able to advise on the maximum 'trigger figure' (ie the maximum outgoing figure you need to put down to get the 'minus').

DEBT IS NOT WORTH MAKING YOURSELF ILL OVER. Sorry if I've been blunt-hope I've helped!

PS-Debt charitys such as stepchange are brill-however if there are a few options on the table they WON'T tell you which one to choose-thats up to you. There is no advantage in my opinion of a debt management plan-ie if you've £12 for example left -splitting it pro rate between creditors. This could go on for YEARS-increasing the stress/worry for you. There will be some moralists on here who will say 'but you took it out-pay it back for however long' blah blah....Do whats best for YOU & your health.