Massive personal loans and other debt - IVA options?

gambledent

Health insurance ......................... 49
Dentist practice insurance................ 372

Hi, thanks for the continued feedback. I have edited my original SOA as there was an error on car maintenance, i've just averaged and made a guess on that of about £20 a month, as a rough monthly view of what servicing works out to be. I definitely need the car for my job, but it's getting on a bit and has more issues than less these days.

The 372 is dental insurance, and i should have corrected the life assurance - it's not that, but health insurance with vitality.

I am definitely working to knock the gambling addiction on the head, and have been given contact for a therapist through my cousin.

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.

I agree I need to have some savings and looking at the SOA i think i have some to spare to build this up, but equally i need to figure out how i'm going to pay back friends and family.

I need to find someone safe to speak to about the Dentistry / Bankruptcy issue. But I don't want to risk them finding out!

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.

I appreciate I've got myself into this situation and i'm not defaulting yet, and fortunately I earn a good salary, so a long term DMP might well be necessary. I'm trying to prioritise my way through the highest interest debts. Also looking at a long term 0% balance transfer credit card to consolidate the existing 3 that I currently have.

I don't understand the implications of the bankruptcy stuff at the moment - the restriction order or the bankruptcy for 36 (3 years?) bit?, fatbelly please could you elaborate?

Macman, I share some of the bills with my sister and our bills are generally low for our house. But, my sister is moving out soon so I do need to consider the impact of this, I'm thinking of getting a lodger.

fatbelly

gambledent wrote: »

I don't understand the implications of the bankruptcy stuff at the moment - the restriction order or the bankruptcy for 36 (3 years?) bit?, fatbelly please could you elaborate?

Happy to do that...

In bankruptcy, you are normally discharged after 12 months. But if your conduct has been 'reckless' then this can be extended by a Bankruptcy Restriction Undertaking (BRU) if you agree to it or a Bankruptcy Restriction Order (BRO) if you don't. Gambling often results in a 3 or 4 year BRU.

You can read them on the insolvency restrictions register. Here is one that got a 4-year BRO:

Between June 2017 and July 2018, XX(Miss X) incurred gambling losses of at least £15,798 as a result of which she became insolvent, and which materially contributed to her deficiency of £22,525

In practice the effects of a BRU - such as being unable to serve as a company director without permission from the court or having restricted access to credit over £500 - for an extended period of between 2 and 15 years - do not make much difference to people.

BRO/Us do not extend the term of bankruptcy so bankrupt individuals may therefore receive their discharge from bankruptcy after 12 months whilst at the same time being subject to a BRO/U for a number of years following discharge.

If you have surplus income then you pay this to the Official Receiver for three years and this is a fixed period regardless of what else happens. It's called an IPA (Income Payments Arrangement, not to be confused with India Pale Ale)

Edit: Technically the reckless conduct thing applies to IVAs too in that the Insolvency Practitioner can refuse to work with you but I've never heard of an IP doing this.

Terry_Towelling

@gambledent, how on earth have you managed to get 10 people to loan you an average of £8,600 each? They know you are a dentist on a reasonable salary, so why would they contemplate doing this? What did you tell them you needed the money for? I wish I had 10 friends who could accommodate such loan requests - I wish I had 10 friends full stop.:)

You've also been asked about the car insurance but you haven't answered why it is so expensive when your car has such a low value.

How do you manage to only spend £50 per month on food and why is your TV licence only £10 per month?

I can see people have postulated why it may be expensive to insure your car but we need to hear the answers from you. Posters should refrain from guessing the answers posed by other posters.

The level of your alleged debt is unbelievable. Surely there aren't enough hours in the day to gamble away that much money.

How do you come to owe HMRC £10K on your salary and how have Barclays and HSBC managed to give you such large overdrafts - did you ask for them?

macman

OP, what is the current situation re the £10K owed to HMRC? Surely if that is much overdue then they will take recovery action before long, so isn't that the main priority to deal with?

brook2jack

Op you havea serious problem with gambling addiction. You also have financial problems which may or may not impact on your professional status.
Seek help, Mental dental have a group on facebook and http://dentistshealthsupporttrust.org/ may also be able to help and point you in the right direction.

You can get out of this mess, it will take time and you need to be honest about your gambling addiction and tackle that head on. Good luck

Terry_Towelling

You can tell a lot from a username. This one says it all.