Debating Bankrupcy or IVA

Techy_George

Hi there,

I was pointed in this direction via the Bankrupcy and Living with it forum. Post as per below:

I've come to admit that my amount of debt is a problem and will very soon approach the point that I cannot keep up with repayments on things. I'm on a good wage (£50k per year) but things have just spiralled out of control. With the change in workplace pension rules in the next couple of months (changes from 1% to 3% contributions) it will put me dangerously close to a zero balance each month.

When the workplace pension rules change, I will be about £70-80 less in my take home pay each month as of April 2018.

I admit that this is way out of control and only have myself to blame. My marriage failed in late 2017 and I incurred a huge amount of costs in moving and getting where I live all setup etc and it just carried on from there. The car company wont do anything with the agreement as it is so early in the term and have calculated that taking public transport is actually about £200 more expensive than keeping the car going per month. The above figures obviously dont take things into account like yearly car insurance, servicing, potential future rent increases etc.

It's at the point where I am losing significant sleep over things and am not sure where to go. Can anyone offer any guidance? My SOA is below for reference and it has made for some scary reading:
Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 0

Monthly Income Details
Monthly income after tax................ 3013
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3013

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 458
Rent.................................... 850
Management charge (leasehold property).. 0
Council tax............................. 105
Electricity............................. 35
Gas..................................... 30
Oil..................................... 0
Water rates............................. 10
Telephone (land line)................... 22
Mobile phone............................ 22
TV Licence.............................. 12.5
Satellite/Cable TV...................... 22
Internet Services....................... 22
Groceries etc. ......................... 160
Clothing................................ 10
Petrol/diesel........................... 200
Road tax................................ 15
Car Insurance........................... 44
Car maintenance (including MOT)......... 25
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 5
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 5
Life assurance ......................... 10
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 5
Entertainment........................... 15
Holiday................................. 15
Emergency fund.......................... 10
Total monthly expenses.................. 2107.5


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 35000....(458)......0
Total secured & HP debts...... 35000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................8790......207.......18.9
MBNA...........................5877......59........20.9
MBNA...........................8905......108.......20.9
Personal Loan..................23903.....460.......0
MBNA (Virgin)..................7455......75........18.9
Total unsecured debts..........54930.....909.......-


Monthly Budget Summary
Total monthly income.................... 3,013
Expenses (including HP & secured debts). 2,107.5
Available for debt repayments........... 905.5
Monthly UNsecured debt repayments....... 909
Amount short for making debt repayments. -3.5

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -35,000
Total Unsecured debt.................... -54,930
Net Assets.............................. -89,930

sourcrates

Well you have a good income so there are possibilities on the table.

35k on a car seems a tad excessive, but anyway.

Your realistic choices are either an IVA, but you would lose the car, or a debt management plan, where you wouldnt.

In a DMP 54k @£1000 per month, debt free in 54 months, if all interest and charges etc were stopped, bankruptcy is also an option, but again, you would lose everything and have to pay an IPA for 3 years.

That would be the quickest option, but maybe not the best for you.