Massive personal loans and other debt - IVA options?

fatbelly

foxy-stoat wrote: »

You wouldn't be able to include the debt from family and friends .

Why not ?

https://www.stepchange.org/debt-info/debts-included-and-excluded-in-an-iva.aspx

When you enter into an IVA most of your debts will be included, including:
•Catalogues
•Personal loans
•Overdrafts
•Credit cards
•Gas and electric arrears
•Council tax arrears
•Water arrears
•Payday loans
•Store cards
•Income tax and national insurance arrears
•Tax credit or benefit overpayments
•Debts to family and friends
•Any other outstanding bill, for example solicitor’s costs, invoices for building work and veterinary bills

superbigal36

Most dentists are associates. He will most likely take maybe 50% of the income he generates.
He will not pay any of the costs.

gambledent

Superbigal36 is correct, I don't have investment in the dentist practices that I work at, I am a self-employed associate, I do not have a limited company. I don't have property assets in my name, I'm just fortunate my parents own the house outright and let me live there whilst they've moved abroad.

I got home really late from my out of town practice the last 2 days so haven't had a chance to do the MSE formatted SOA. I've got the information in another spreadsheet but will complete this version and share later tonight.

Thanks for the advice everyone

gambledent

Hi all

I’ve completed an SOA, thanks for the continued advice.

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 3200
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3200

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 113
Electricity............................. 20
Gas..................................... 20
Oil..................................... 0
Water rates............................. 22
Telephone (land line)................... 0
Mobile phone............................ 20
TV Licence.............................. 10
Satellite/Cable TV...................... 0
Internet Services....................... 29
Groceries etc. ......................... 50
Clothing................................ 0
Petrol/diesel........................... 150
Road tax................................ 20
Car Insurance........................... 110
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Health insurance ......................... 49
Dentist practice insurance................ 372
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 100
Holiday................................. 0
Emergency fund.......................... 0
Income Protection....................... 40
Total monthly expenses.................. 1145


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2500
Other assets............................ 0
Total Assets............................ 2500

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
American Express CC............1343......0.........29.99
Barclays comm cc...............3000......0.........15
Barclays Personal cc...........4468......0.........12
Tax (HMRC).....................10000.....0.........0
Loans from 10 people...........88550.....0.........0
Barclays overdraft.............7300......0.........15.4
HSBC overdraft.................4500......0.........17.9
Barclays pers loan.............7336.4....181.......16.9
Barclays comm loan.............17618.....599.4.....12.8
Santander pers loan............18500.....455.6.....17.9
HSBC pers loan.................25000.....388.2.....6.7
Total unsecured debts..........187615.4..1624.2....-


Monthly Budget Summary
Total monthly income.................... 3,200
Expenses (including HP & secured debts). 1,225
Available for debt repayments........... 1,975
Monthly UNsecured debt repayments....... 1,624.2
Amount left after debt repayments....... 350.8

Personal Balance Sheet Summary
Total assets (things you own)........... 2,500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -187,615.4
Net Assets.............................. -185,115.4

Created using the SOA calculator at
Reproduced on Moneysavingexpert with permission, using other browser.

mcpitman

£110 p/m for car insurance and £100p/m for car maintenance, for a £2.5k car?

What insurance is the other £372 p/m?

Surely these could be immediate savings, however at that level of debt i think you are heading to bankrupcy.

Good luck with it all, however you need to get the source of the debt resolved too (gambling), otherwise you will back in the same place in a few years.

enthusiasticsaver

The most critical thing is to stop gambling so hopefully you have the support of your friends and family particularly those who you owe money to. What about the tax? Is there an arrangement to pay as HMRC should be a priority debtor.

I am not sure why an IVA would be the best option as you have no assets to protect and that soa shows you can meet your monthly repayments albeit you have not included monthly repayments for credit cards, friends and family and tax. Have you defaulted on anything yet?

I think you are either looking at a long DMP but if stepchange won't help then it will either have to be self managed or bankruptcy. Personally I would be leaning towards bankruptcy. Why so many insurances when you have no dependants? Your creditors can't come after your family for your debts if anything happened to you.

You need to check if bankruptcy affects you professionally but if you aren't technically self employed I don't see how it would. Have you stopped using credit now? You need some emergency savings so whatever you do I would start to default on all those (except tax) and open a clean bank account and start to live within a budget and save up some emergency savings in case your car dies.

Splatfoot

Insurances = probably because he's a dentist.

enthusiasticsaver

Splatfoot wrote: »

Insurances = probably because he's a dentist.

So presumably malpractice insurance?

fatbelly

I think you need to be doing your own research and asking us if you are not sure on anything or want to check out something you've been told.

There are possible advantages to an IVA (but you have to balance these with disadvantages/advantages of bankruptcy):

• You could protect your car, perhaps one worth a bit more
• You avoid a Bankruptcy Restriction Order, which looks a possibility in bankruptcy

I can't see a long dmp being sensible unless the GDC rules out other options as even putting 2k per month to a fee-free company is going to take 94 months. In an IVA you pay for 60, in bankruptcy for 36.

macman

A minor detail in context of the huge debts, but £40pm for gas and electricity is unfeasibly low. I too am baffled by the need for life insurance?