Do I go for an IVA, OR payment plan etc..£60.000in debt.HELP!!!

jen_jen_2

charliec wrote:

Concerned if we could did try bankruptcy, would they take a car? and could I expect the balliffs round?

if the car is necessary for work - no, if it is of high value the official receiver may sell it and allow you to buy a cheaper one. the bailiffs wont come round because you are bankrupt. bankruptcy says you cannot afford to pay your debts and creditors deal with the Official receiver who decides if you have any assets that should pay your debts therefore no enforcement of debt neccessary therefore no bailiffs.

as some of the loans are joint it may only be worthwhile if you both do bankruptcy(dont know if you both can and double the fees), you would also both have to do seperate iva's (double the fees) and if you cant then a debt management plan may be the option because you can have one plan for you both.

call national debtline there is a link on the banner at top of page, you can do this at a time that suits you and the army wont find out, they will help you to discuss these options.

Malestrom

Agree with Jen_Jen, call ND or CCCS, explain your problems and your fears with regard to bankruptcy and see what they say. At the end of the day, you're not going to be the only army family thats considered bankruptcy and they're bound to have helped others in a similar situation in the past. Also, joint bankruptcy is the only way to go, no point just one of you trying to go bankrupt. Fee's for bankruptcy are also a lot lower than for IVA's.

topcat0000

I went down the path of an IVA about 6 months ago and it was the best thing i ever did. I went through the cccs who recomended the best person to go through and with them I worked out my monthly expenditure (and was fairly genourous on all accounts) and then agreed to pay back just over £200 a month for next five years. After five years the repayments stop and you are debt free.

The letters and phone calls from the banks have stopped and i am still maintaining a good quality of life.

Changing banks is easy.... i went to alliance and leicester and they have been great and only took me an hour or so to sort out, if that.

charliec_3

Topcat, do you own your home, do you have to surrender a lump sum at the end of the fixed term, is it a fixed term, and how much did it cost you to do an IVA, you don't say how much you owed, would it be cheeky to ask, I am glad its working for you, we are still undecided, but are trying to get rid of a car at the moment, which will reduce our outgoings straight away, good luck and thankyou

topcat0000

I dont own my own home no.

Essentially, all IVA's last a fixed term of five years and after the ast monthly payment that is it... ntohing more to pay.

You have to be able to pay back more than £200 a month.

I owe around £30k and am paying back £220 a month for 5 years.... your monthly payments are re assesd every yeat to take into accoutn pay rises etc. However, what is worth baring in mind is that even if i owed £40k I would still be paying £220 a month for five years.

Only issue is that you cannot get any other credit for the five year duration.... for me this was a good thing... i.e. no temptation!!

As i mentioned above I was required to list my monthly spending and I was quite generous with my allowences for my spending and it wasnt picked up on and so i still have money left to keep up a reasonable lifestyle.

As for the cost... that is included in your repayments and so you wont notice it as such. The cccs can recomend the best people to go through.