IVA, DMP or Bankrupsy, difficult decision, difficult situation

ABUDDY_2

Hello Everyone..... (mods....if its in the wrong place please move)

I'm self employed and was also a company director (not related jobs)

cut a story short, owe about 18k personally in creditors (banks, loans cards etc).
The Business is in the process of being struck off, 2 bad years of trading (world cup, bad weather, its summer seasonality) plus some costly mistakes and a couple of bad judgements preparing for summer seasons which didn't really happen,
its coming to a close. Have been speaking with Business Debt line regarding all this....(thanks! BTW)
it currently owes about 14k to creditors, ok fine, around 7.3k i have signed a personal guarantee for, so that takes me personally liable to 25.5k roughly.
when it was all running together successfully there was no problems with paying debts. but now its a no hoper after 6 mths of struggling

in terms of my self employed job, its service orientated,
i own little or no equipment I have an avg income on this of £1450pm with £250 being put aside for tax (so £1700 pm before tax)
I have spoken to many people, including CCCS and myvesta, so im aware on my personal situation i can do a DMP or an IVA. of around £300 a month

The big problem is that the business owes 80k to my parents in a form of a business loan on their property. but would not be recognised as a significant creditor. and basically no matter what they have to be paid back over everyone else. or they lose their house. so this has not been disclosed to CCCS etc in terms of a DMP or IVA amount above. as they wont entertain it.

i don't own a property (renting), have a £1500 car, have no flash gadgets, (ie...no £2000 TV's) plus i don't think i have been reckless with credit.

question is.....with this big 80k (680 a month) that has to be paid also, would bankruptsy be a good option. i'm finding it hard to find people to understand the situation, and give a straight answer. i understand all the pitfalls of Bankrupsy, so would have to deal with it.

i get the feeling that potentially i could be pushed into an IVA, with the personal debts which is fine....if correct, but i cannot allocate this £680pm large payment anywhere. and have no income for it (unless i lie and take more work on), plus its not recognised as a legit creditor (although to me its the most important, as i wont let em lose their house cos of me)
if i had to add it into my in/out expenses structure im still -£400 pm down on the £300 ish i would have spare to do an IVA/DMP.
whats the situation regarding if i went out and got work to pay for this £680 seperately? would this not get taken from me when im in a DMP or IVA?

if thats the case then i guess bankrupsy may allow me to get a way out
and work to pay rent, bills, and my large chunk to the parents.

sorry for the long post, but anyone else been in a similar situation?

RAS

Welcome

You might get some good advice over on the Bk sub-board, look towards the top of the front page.

ABUDDY_2

yep already in there too, just incase i posted it in the wrong section

Eager_Elephant

Gosh Abuddy you are in a tricky situation.

I can't see how looking at any of these options you will be able to hide that payment of £680.

If you went bankrupt you ahve to complete an income and expenditure to see if you have to pay into an IPA (income payment arrangement) and the Official Receiver is very strict on a budget. Of your avaiable income he will want between 40 - 60%.

I don't understand why you fell you might be pushed into an IVA - no one can force you to sign.

Can you do a SOA which shows your day to day bills and then underneath list the payments that your creditors expect?

How long do the payments on the secured loan last? As I understand it your mum and dad have taken a secured loan and given the money to you to use within your business - were any formal documents drawn up?

Let me know the answers and I will reply again

EE