Time to sort it out!

Pinquay

Hi there, been struggling with debt for best part of ten years. Been paying around £800 per month on debts for eight years but in worse situation now that then. Been in denial for a while but can't keep it going any longer. Have just over £40000 of credit card debts, bank loan and overdraft. Contacted debt line and just finished putting together one of their budget plans. I'm self employed, bring in around £2100 per month but outgoings are £2300 (not including debt repayments, although some are taken into account within my business) Have already seen some areas where I could shave off around £200 per month and maybe some more if we change our eating habits. Only real luxuries are kids swimming and kungfu lessons. Currently getting into debt to pay debt but it's got to the end of its limit and I don't have any credit left. Yes I have made some purchases I shouldn't have, drink too much and fully aware that I've got myself into this but it's now time to get out! The debts have built up through failed business opportunities and using credit to cover shortfalls in my self employment. At the moment my monthly minimum payments come to just over £1000.00.
I have no house or assets and don't know what the best option is. Iva or bankruptcy feel like my only options. Going to phone back business debt line tomorrow with my figures and see what they advise. Any help from anyone here would be gratefully recieved. Feel like I've been on a treadmill for the last ten years which is about to come to an abrupt stop! I must have paid back over £75000 over the last decade but in more debt now than when I started....
Thanks for reading.......

sourcrates

Hi,

If credit card accounts are over 10 years old, I'd be sending them all a nice little CCA request first, see which will be enforcable, and which won't.

You may be right in thinking IVA, less restrictive than Bankrupcy.

See what Buisness Debtline advise you do first.

Pinquay

Hi there, what's a CCA? I've bounced around credit cards over the years for low balance transfers etc but had the current three for around four years. Need to do something fairly quickly as I can only keep going for another month or so....

Pinquay

Hi, would really like to hear from anyone who has taken out an iva or gone bankrupt? What your experiences were, how it worked out?
Thanks

Sanctioned_Parts_List

I think the Bankruptcy and Living With It board on these forums would be a good place to start.

sourcrates

Pinquay wrote: »

Hi, would really like to hear from anyone who has taken out an iva or gone bankrupt? What your experiences were, how it worked out?
Thanks

I had an IVA from 2008 till 2014, mine lasted 6 years, as I was not a home owner, so could not remortgage in year 5 for the benefit of creditors.
It wasn't that bad, but it's imperative you budget correctly, otherwise you will struggle.

Six years was a long time, and to be honest, if I could go back, I would of gone Bankrupt instead, as it would of been over sooner, but that's just me.

In order for an IVA to be approved, you must convince at least 75% of your creditors, by value of debt, that your proposal represents the best possible return for them.
I was lucky, my biggest creditor was 21k, and I only needed them to agree, to get it approved, which they did.

Both options will mean your name will appear on the insolvency register for 6 years, but that's no big deal, if you want to keep it simple, go IVA, it's less of an impact, and less intrusive than Bankrupcy, also has less restrictions.

I would try for an IVA first, and if it's not approved, and you cant amend it sufficiently to convince your creditors to accept it, resort to Bankrupcy, because all you need is the court fee, you don't need any creditor approval.

pennystretcher

What does your SOA look like?

DawnW

Is your debt purely business debt, or personal debt too?
Would an IVA/ bankruptcy prevent you continuing with your business, as it sounds as though you have a decent income atm?

Pinquay

My debts are a mixture of business and personal but all to the bank and credit cards. I've always kept up with payments to my suppliers and subcontractors. I was told by the national debt counselling service that my partnership would be dissolved immediately but I would still be able to keep trading as a sole trader. I have work booked up for the next four months. My main concern about bankruptcy is losing my van and tools. The van I on a lease so will immediately go back to the lease company... Also can they come to your house and seize possessions? I don't really have anything of great value, usual stuff like tv, Hifi General household things......most of my money is in my tools.....

Pinquay

My soa shows a deficit of £200.00. With a bit of changing things around I can balance it up by cutting back on a few things but to be honest we don't live particularly extravagantly, the only non essential expenses we have are after school clubs for our children and a few bottles of wine...this is why I was advised to go for bankruptcy over an iva.