any advice?

jetcat

hi all,
posting on behalf on friend, his soa follows. he is currently with Baines and Earnst, and has been for the past 7 years, reducing his £37000 debt by £9000, having paid them approx £15000. today he received call from one of the creditors being paid by B & E, stating that they have not had regular payments from B& E - he has always paid by direct debit on time. anyway, has spurred him on to do something about it - i have tried to get him to contact a free service for years, and today he has (woo-hoo!)) CCCS are ringing him back in the morning, and we are just looking for some opinions, advice etc re iva's, bankruptcy and DMPs. he is a local authority tenant, living on his own, paying £45 per month maintenence for two children.
B & E have suggested an IVA in the past, but wanted to up the monthly payment to £340, which was not at all possible!

wages £990 per month

RENT £240.00
COUNCIL TAX £72.28
TV LICENCE £11.37
GAS £52.00
ELECTRICITY £27.00
WATER £25.00
BT PHONE £38.00
FOOD/TOILETR £123.28
CLOTHES £20.00
HOLIDAY £20.00
EYE CARE £8.00
MEALS @ WORK £52.40
PETROL £40.00
ROAD TAX £11.00
INSURANCE £14.00
CHILD CARE MT £45.00 sub total 799.33

DEBT MNGMT £190.00 total 989.33

lunar

I would advise your friend cut out the meals at work if its money saving advice your after, that was one of my major pitfalls! If its advice on the IVA stuff you need im sure there will be loads of people on in a min to help you out!

jetcat

the meals at work thing, thats what i said. trouble is, it is a factory on an industrial est, with very limited outside facilities, normally just the expensive staff canteen. have suggested packed lunches.

RAS

Hi

We need his income per month, so we know if there is any spare. And the meals at woork need to go. Take a pack up, even if he eats it in the canteen.

Heaven know how much he has paid out in fees, so well done for getting him to CCCS.

jetcat

sorry forgot to post that bit!! have edited post to add it. and thanks for your replies.

RAS

Hi

Go to www.whatsthecost and plug in his payment and debt into the snowball to get an idea of how long it will take to clear this.

Also have a chat on the BK bord about the personal impact of BK?

Dr_Hook

If he continues to pay £190 per month into a DMP with no fees, it's still going to take over 10 years to repay his debt (assuming interest is frozen).

An IVA may be viable, but I'm not convinced it would be entirely appropriate - he has no significant assets to protect and it's unlikely either his tenancy or job would be affected by bankruptcy.

BR may be his best course of action, though without knowing his whole situation it's impossible to say.

CCCS will be in the best position to advise when he speaks to them tomorrow - I'm sure they'll give sound advice