Iva or another unsecured loan please help Soon!!

fatbelly

wigglers wrote: »

No I dont think so.. My brother bought us the car my parter uses it to take the kids to school and clubs etc its a mk 7 golf 1.6 the most eco car I've owned before worth 3-4k I'd say maybe less if sold. £400 a month for what sorry? The problem is I'm stuck with what to do and just keep getting myself more in debt

The £400 per month referred to a debt management plan, where you pay what you can afford - if you could only afford less than £400 per month then it would take an unreasonably long time.

The car is a potential asset in bankruptcy - if brother can show that he bought it then it can be presented as him as the owner, you as the registered keeper.

wigglers

He transfered 7k into my account the day before we bought it l.. Which can show on a bank statement is that enough proof? So 400 a month for a dmp is that the best way foward? I really like I say want to get into college and get my life back on track.. I've got 2 assessments on thursday an English and maths to see what level I can go in at. Is full bankruptcy an option and would I need to get a job quit my job how do I go about it?

fatbelly

wigglers wrote: »

Income

wages £1500
Uni cred £721
child beno £136

Total £2357


debts
HSBC overdraft £3000
Hsbc Loan £10529
My Barc. £7834
Cap £1700
Total £23063


Expenditure
Rent £825
Council tax £155
Water £33
Tv licence £12.50
Bt phone + net £30
Gas + electric £72
Partner mobile £28
Curry's £4
Kids swimming £45
Twisto £30
Daughter brownies. £30
Son beavers. £30
Daugter school dinners. £40
Gym £36
My ee mob £46
Netflix £10
Son football. £20
Car insurance £45
Car diesel £30 a week = £120 a month
Shopping £80 a wk = £400 pm


Total = £2011.50
Surplus £345.50

However, I don't think you have £345.50 surplus. You have nothing for clothing, Christmas & birthdays, road tax, car maintenance, dentists & other health things, haircuts.

You could maybe do a smaller dmp with someone like stepchange or payplan, and see how it goes. That would at last allow you to live within your means

The car invoice won't be in your brother's name so you stand to lose the car in bankruptcy.

All the 'how does it work' questions can be answered from the National Debtline website.

What will happen to your income when you go to college?

wigglers

It will drastically reduce as I will probably only be able to work part time.

wigglers

Road tax is free on the car, can't I sign it back over to my brother maybe?

TheGardener

wigglers wrote: »

It will drastically reduce as I will probably only be able to work part time.

If you apply to do a foundation level at a University you would be eligible for the student finance options. You could also work part time - like most students. It is doable if you feel you are able to tackle higher education. Most Uni's offer a foundation/access level as a step up to doing a degree.

fatbelly

I lost a post somewhere but that's fine as The Gardener is right, andI probably wouldn't make the final decision until your new situation is clear.

What is clear is that your present situation isn't working. You are only making your contractual payments by considering further borrowing - either from overdrafts or a further loan or both.

I would start a new bank account away from your debts, cancel all direct debits to your creditors and talk to stepchange/payplan about a dmp. That would get interest frozen and stabilize things.

(My 'lost' post was a suggestion that you could downgrade your car, use the cash to pay debts down below 20k and do a DRO. Just hold that in the back of your mind for now)

wigglers

Yeah I realise there is student finance available and obviously I would need to work part time in not sure we could sell the car as it really is used every day and as my partners family live 2 hours away sometimes on long runs. I will set up a brand new bank account.. Any advice who's best to go with? Don't people offer £100 odd for switching? It's no good setti g up a dmp if I don't know what my income will be when at college though?

fatbelly

You can find all the info you need on mse.

This is Martin's article on best bank accounts - good idea to get one before your credit history deteriorates.

https://www.moneysavingexpert.com/banking/compare-best-bank-accounts/

I can see that you like the car.

In bankruptcy a 4k car will be sold and (if you can show you need a car) you get 1k back to buy one

In a DRO a car is invisible if it is less than 1k; above that you are disqualified

It'll take a little time to start a dmp. You may as well star talking now. A dmp is flexible and an 'informal' solution so you are not locked in to any payment.

wigglers

Thanks for the link, yeah I do like the car mainly because it so economical! What do u mean by the car is invisible in a Dro? Above 1k I am disqualified? Sorry I'm lost here.. Start talking to who? I've spoke to step change and they suggest an iva? Do u mean ring them again and ask about a dmp?