No more false starts

ditty1234

Hi Suffolk Lass, apologies for using depressed in the more casual sense. I am feeling very low and frustrated w myself, but I also know that I really have to be super responsible and trying to work out how I have managed to not do this in the past. But then thats a long story. My aim this week is to get out and walk the dog every night and keep on top of practical stuff while I wait for answer to IVA stuff.
I am tracking all the info you mention above, and I am still bleeding 2-300 a week on anything from a long promised training camp as well as a bunch of tiny bits and pieces that add up. So still got lots of work and analysing and self reflection to get on with.
Looks like uni boy will complete year and gcse boy is studying hard to pass his gcse's, I will keep my job and we will all come to the end of the term in one piece.

Suffolk_lass

I really think concentrating on the practical things will help you. . I really recommend the clip - it changed my coping strategies

crazy_cat_lady

Good luck ditty...
I think you might find an overwhelming sense of relief once it's all started you know. I felt awful running up to and starting my DMP - but it was such a good feeling to know that there was an end in sight.
My only advice would be to make sure that your budget is reasonable - don't cut it too far back. You're going to have to live on it for the next 5 years.

ditty1234

Well I'm now approved for an IVA scheme so if it all goes through I'll be on my merry way to learn how to truly live on a budget, which is well overdue.
Now on to sorting out direct debits.

Pip_Boy_111

Hi. I have no real advice or expertise. Just wanted to stop by and say i'm following your journey and genuinely wishing you the best.
I know it's not everybody's thing, but a spreadsheet helped me massively with tracking my budget and identifying areas where savings can be made.
Anyway, good luck. You can do this

fatbelly

PipneyJane wrote: »

Good luck, Ditty1234. I will keep my fingers crossed that for you that the IVA goes through.

I think Fatbelly's remark is driven by the fact that bankruptcies give a (so-called) clean break whereas an IVA requires you to keep up the payments for the agreed period of time. (He's wrong, by the way. Some people continue to make partial repayments throughout their bankruptcy supervision period.)

- Pip

Really?

In bankruptcy if you have surplus income, you pay this for 36 months through an Income Payments Agreement or Order. But your assets belong to the official receiver.

In an IVA you pay for 60 months. But your assets are protected.

The OP is protecting a car worth £1700. Is that worth the extra?

What happens if circumstances worsen to the point that no payments can be made? In bankruptcy your payments stop.

In an IVA, the IVA is at risk of failure and the debts come back with the surprise that very little of the payments that were made went to the debts because they went to the nominee and supervisor fees, which are usually several thousand pounds.

ditty1234

Hi above's to be fair at this point I don't think I care about my credit score, as it is trashed for the immediate future no matter what happens, this is extremely frustrating as I have paid everything every month for the last many years. But I have also been walking backwards towards an abyss I was quite aware of.
I am now at a point where I genuinely don't think my financial situation will change dramatically. I realise the IVA's are very unpopular on these sites and in a way I wish I had the guts to just default on my loans/ set up a self managed dmp with a low payment. But I have now been offered the IVA application, but I don't feel I was told if there is 2 week cool down or what will happen if my creditors do not accept the IVA. I have accepted it on the basis of £152 a month, which seems reasonable, but will be a struggle over the summer when my income is lower. I guess like a lot of people I have never taken enough of an interest in money in genereal, budgets and consequence in particular, just worked on from month to month. All I know for sure is that from next week I will start defaulting on all loans and I don't know if the IVA will get them a message before the default.
I do not want to have creditors calling or potentially visiting the house and I have a young son living at home, whom I don't want to get involved in the situation, he knows I'm broke but I don't want him to feel responsible or a burden, or in any other way it to affect him in his every day life. So anyways this is partly were I see the IVO as a bit of a shield and hopefully a predictable way out of a situation that has become pretty grim mainly due to my lack of ability to get/keep a full time job.
SO Fatbelly yes I have seen the 3 year payments on some bankruptcy and can see very clearly the advantages, and will probably go for it if the IVA doesn't work out, and then just fight to keep my car one way or the other. The IVA company is CreditFIx.
PS does anybody have successful stories about IVA's to share?

PipneyJane

fatbelly wrote: »

Really?

In bankruptcy if you have surplus income, you pay this for 36 months through an Income Payments Agreement or Order. But your assets belong to the official receiver.

In an IVA you pay for 60 months. But your assets are protected.

The OP is protecting a car worth £1700. Is that worth the extra?

What happens if circumstances worsen to the point that no payments can be made? In bankruptcy your payments stop.

In an IVA, the IVA is at risk of failure and the debts come back with the surprise that very little of the payments that were made went to the debts because they went to the nominee and supervisor fees, which are usually several thousand pounds.

Thank you for your detailed explanation the above.

The OP cannot get to work without the car. Given the value and that requirement do you think she would be allowed to keep it if she declared bankruptcy?

Ditty1234, whatever you decide to do, I wish you good luck.

- Pip

fatbelly

PipneyJane wrote: »

Thank you for your detailed explanation the above.

The OP cannot get to work without the car. Given the value and that requirement do you think she would be allowed to keep it if she declared bankruptcy?

At £1700 it's borderline. You can keep a car worth £1000 if it is 'necessary'. Above that it is supposed to be sold and £1000 returned to the debtor to buy a replacement. However, factor in sale costs and there would be little net gain for the creditors.

The official receiver should not take any steps to claim an exempt vehicle unless he/she can be reasonably satisfied that there will be a net benefit to the estate in doing so, after taking into account any costs of sale and of a replacement vehicle (see paragraph 30.145).

When valuing the vehicle, the official receiver should take into account the value of any personalised registration mark attached to the vehicle (see Chapter 31.2, paragraph 31.2.74) and any outstanding (accrued) tax and insurance on the vehicle (see Chapter 31.2 paragraphs 31.2.70 and 31.2.71).

Clouds88

Ditty,

I am a fellow bankrupt. I do not earn enough for an IPA so I’m discharged next month, easy as that. No payments to the debt, no debt exists now. Clean slate.

If you take your figures of your actual wage minus the over time that you could stop doing which will only boost your income (which you wouldn’t want in bankruptcy) then I can’t see why you would also get an IPA your SOA is to the bone as they would say.

IF you wanted to go down this route and be out of the mess quicker:
The car- could you not sell it for what it is worth, buy another one for £1,000 and then use the £700 to pay for the bankruptcy- totally reasonable.

I just do not see the attraction of an IVa it’s so many years of payments. I tried a DMP first but wish I had gone down the BR route sooner. Credit rating is trashed but I do not want to get into this mess again so that’s a saving grace for me to make sure I stay away.

Goodluck and please read all your options and weigh things up before you decide. I am a health professional FYI, I know there is a stigma and I’d hate my colleagues to find out but it’s no where near as bad as you think.