Help please just don't know what to do

trundles

Hi

this is about my third post and my third idea for sorting out my debts!

I have approx £32,000 in debt I went for a 25% IVA which was rejected.

I sold my house and made a bit of profit (the house wasn't actually in my name I just had money invested in it so when it sold I got some money back) my debt management company have now suggested I go for a full and final IVA offering £14,000 which they are telling the creditors is been given to me by a friend to help me out, the IVA is costing £5000 in fees, If I go bankcrupt as this money is not 'offically' mine would I need to declare it to the OR or would it be acceptable that it was for an IVA only which I think will be declined anyway?? I haven't gone for the IVA yet because they are saying I can't do it until I am workng again

I am so scared and confused but I just want things sorting out as soon as possible I am really think going bankcrupt would be the best thing for me

Any help much apprecitated thanks

juliapenguin

Hi trundles

Can't help about IVAs as I've not been there myself, but I know what it's like to be scared and confused and in awful debt so I thought I'd say hello and say you a virtual hug.

I know that there are load of people here who will be able to give you the advice you really need.

Good luck.

Julia xx

Richard_S

trundles wrote: »

Hi

this is about my third post and my third idea for sorting out my debts!

I have approx £32,000 in debt I went for a 25% IVA which was rejected.

I sold my house and made a bit of profit (the house wasn't actually in my name I just had money invested in it so when it sold I got some money back) my debt management company have now suggested I go for a full and final IVA offering £14,000 which they are telling the creditors is been given to me by a friend to help me out, the IVA is costing £5000 in fees, If I go bankcrupt as this money is not 'offically' mine would I need to declare it to the OR or would it be acceptable that it was for an IVA only which I think will be declined anyway?? I haven't gone for the IVA yet because they are saying I can't do it until I am workng again

I am so scared and confused but I just want things sorting out as soon as possible I am really think going bankcrupt would be the best thing for me

Any help much apprecitated thanks

trundles,

If you're trying to get rid of the £32k of debt and hang on to the £14k then you're not going to be able to do that legitimately; I'm not saying you can't do it, but it really does depend on how easy you want to sleep at night.

If you have got £14k to put towards your debt then you don't need a debt company to relieve you of £5k; I'm fairly certain we can help you resolve that without the need for declaring bankruptcy and we won't charge you anything more than a "thank you".

I've been scared and confused so I know how you feel, but you really do need to let us know what you're trying to achieve.

Regards

Richard

trundles

Thank you

I obviously would like to be debt free as soon as possible without having to go bankcrupt or do an IVA because I think they are a bit of a rip off £5000 fee just seems crazy surely my creditors would prefer to have this money themselves!

What do you think would be the best thing to do? I am currently paying between £1 and £50 a month to my various creditors have been doing this for around a year and haven't had any letters for about 6 months now so I think they are happy ish all interest and charges have been frozen.

Would it be best to clear some of my smaller debts and then throw any spare money I have at the bigger ones? I just really don't know where to go from here

thank you again

Walter_J

You've £32k worth of debt, you've no assets. You've got 'access' to £14k.It's a no brainer!!!Take the cash out of wherever it is and stash it somewhere safe. File for bankruptcy immediately. You don't need to reveal the proceeds of the house sale as it wasn't your house.Twelve months later you're discharged and in the clear.Don't even think about an IVA. They are a good idea for certain people but have got hijacked by ex-double glazing salesmen who are out for a quick buck.Good luck matey.

Posthinking

Walter_J wrote: »

You've £32k worth of debt, you've no assets. You've got 'access' to £14k.It's a no brainer!!!Take the cash out of wherever it is and stash it somewhere safe. File for bankruptcy immediately. You don't need to reveal the proceeds of the house sale as it wasn't your house.Twelve months later you're discharged and in the clear.Don't even think about an IVA. They are a good idea for certain people but have got hijacked by ex-double glazing salesmen who are out for a quick buck.Good luck matey.

!!!!!!? Do you really believe the OR wouldn't query this?

trundles

The money was put in my account from a solicitors account and then I sent it straight to my debt people (CAP) who are currently holding it for me the money as far as they are concerned is a gift to proceed with an IVA but do you think I would be better off trying to pay off my smaller debts then paying more off my bigger ones from the cash I have available from my salary when I get a job which will be soon! also I receive approx £2000 a year from family as an inheritance tax avoiding kind of thing so I can also plough this in to my remaining debt which would be around £16,000 once I have paid off the smaller ones

trundles

hi

the money came in to my account from my friends solicitor who is 'lending' me the money I then sent it on to my debt management company.

Would my creditors force me to go bankcrupt if I up my offers after clearing off my smaller debts?

Richard_S

Walter_J wrote: »

You've £32k worth of debt, you've no assets. You've got 'access' to £14k.It's a no brainer!!!Take the cash out of wherever it is and stash it somewhere safe. File for bankruptcy immediately. You don't need to reveal the proceeds of the house sale as it wasn't your house.Twelve months later you're discharged and in the clear.Don't even think about an IVA. They are a good idea for certain people but have got hijacked by ex-double glazing salesmen who are out for a quick buck.Good luck matey.

Wally,

The O.P has got at best a 50/50 chance of getting away with that.

Read the Insolvency Service BRO/BRU bulletin and see whether you still think that's a good idea. I'm all for bending the rules; I bend them double; but breaking them?? Not something I would suggest to somebody who is already "scared and confused".

Richard_S

trundles wrote: »

Thank you

I obviously would like to be debt free as soon as possible without having to go bankcrupt or do an IVA because I think they are a bit of a rip off £5000 fee just seems crazy surely my creditors would prefer to have this money themselves!

What do you think would be the best thing to do? I am currently paying between £1 and £50 a month to my various creditors have been doing this for around a year and haven't had any letters for about 6 months now so I think they are happy ish all interest and charges have been frozen.

Would it be best to clear some of my smaller debts and then throw any spare money I have at the bigger ones? I just really don't know where to go from here

thank you again

Hi trundles,

I'm not suggesting you should do this because I don't know you and your personal circumstances and more particularly how you cope with aggravation, but if I was in your position I'd do the following:

1. Retrieve the money that's with your debt company; before they go bust and you lose it completely and have it paid back into your friends bank account.

2. Detail exactly how much you owe to all your creditors.

3. Write to each and everyone of them and offer them 20p in the pound as a one off "full and final settlement". Explain that a friend has made this as a last ditch offer to help and in the absence of their agreement it's your intention to declare bankruptcy.

Some will accept, some won't, it's difficult to know how to proceed frm there until you see what the response to your letter is.

One thing for absolutey certain though is that IVA and debt management companies rank alongside ambulance chasing solicitors, sewer rats and Necrotizing fasciitis; avoid them at all costs.

Richard

trundles

Morning

thak you for the advice, if some of my creditors didn't accept the full and final would they then force me to go bankcrupt or would they happy with me paying as much as I can afford a month?

I am hoping to get a part time job as well as a full time one and work like a nutter for a couple of years with the intention of clearing things as soon as I can this has just been dragging on too long now and I want it sorting!

MY money in the account with my debt management company actually comes to £15,800 because I have been saving as well but because they are a charity they are keeping the interest made from it I must be mad! but I thought they were doing the right thing for me but I just can't understand why they have put me in touch with an IVA company who will charge me £5000 in fees how can they justify charging so much!!

If I did go bankcrupt there is absolutley no paper chain back to me with the house, the money I invested in it was never in my name and was given to my friend, when the house was sold nothing was in my name and the money came from my friends solicitor straight in to my account so there is no way I don't think that they can contest it wasn't a gift although I am not sure and don't want to get in to trouble!!

this is such a nightmare and I wish it would all just go away!

thank you