Last Chance?

the_youngs

Hi,


I last posted on here several years ago in regards to an IVA.


That was set up in 2010 over 6 years, however, due to some changes in personal circumstances, I had to stop paying in to that.


The IVA has now been terminated and everything's back on to my toes.


My wife and I have our own debts - hers luckily are approx. £2.5k and no more. Mine on the other hand are approx. £40-45k.


Reason for this was relationship split - loans to setup home elsewhere, replace car - followed on by issues with tax credits overpayments, reductions in income etc...


I can say hand on heart that not a single penny borrowed has gone on a lush holiday - can't quite remember what they are!


I am giving BR a serious thought at the moment to finally get some peace and balance - the stress it causes is beyond a joke - it's at the point where I'm worth more 6ft under than anywhere else.


It would be a sole BR application though.


We want to be able to buy our own home at some point in this lifestyle but with the debts that's not going to happen.


I've had a good read through a lot of the info on here - very useful for someone not knowing a lot about it.


Can people point me in the right direction or if its a good idea in terms of dealing with debts?

macbabypam

all BR petitions are sole. If a couple petition for BR they must do it seperately and pay 2 charges.

BR is the only way for some people. However you must take some professional advice (CAB, Stepchange, National Debtline etc. ) as you must explain at point of petitioning that you have given BR serious consideration. Read the stickies for advice.

BR is not an easy route, it is emotionally draining and felt like despair and relief in equal measures for me. However it will give you a fresh start albeit with restrictions. If you receive a 1 year AD which is usual as long as you have an uncomplicated case, you are only responsible to the OR for the year you are undischarged. After that you can start to rebuild your credit file and move on wholeheartedly with your life, bearing in mind that you will have severe restrictions in accessing credit / mortgage etc for 6 years after your BR, when it will drop off your credit file. Some credit firms may ask if you have EVER been BR so you never escape BR entirely.

Try not to worry, get some advice and if you decide BR is the right road for you, walk down it with your head held high, it's not as daunting as it seems.

Good Luck

National_Debtline

Hello there,

Macbabypan's post is excellent. It's clear you have attempted alternative methods to deal with your debts and that bankruptcy is your last resort. As options go it *is* formal and can be a frightening prospect. That said, many of our callers have told us it gave them a huge weight off their shoulders and allowed them to finally move on with their lives. It may be worth completing a statement of account to see how long it would take to clear the debt by making affordable offers of payment each month? If it's going to take a very long time it's likely that bankruptcy would be a more appropriate option. Do consider posting up your statement of account here.

We have a useful fact sheet which outlines the important aspects to the bankruptcy process, you can find here it:
http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=01_bankruptcy

I wish you all the best best with your journey.

Best wishes,

David @ NDL.

longtermplanner

With debts that large and a failed IVA behind you, bankruptcy looks like much your most likely option. If you could pay £500 to your debts and all interest was frozen it would take 7 years to clear them.

If you want to read more about bankruptcy, then the posts here are an excellent start if you have a week or two to spare! National Debtline factsheet linked to above covers all the important points. There is a good introduction here http://debtcamel.co.uk/debt-options/bankruptcy/. And this site has a lot of information including a calculator that lets you see how large an IPA you might have to make https://nedcab.cabmoney.org.uk/bankruptcy.asp.

You mentioned tax credits overpayments. They too would be written off in bankruptcy.