Iva or bankruptcy please help

Shaunw1987

Good evening I'm looking for much needed advice regarding the above title I currently owe just over 10k on 3 different credit cards my partner has roughly the same and is with creditfix and has been for over 6 months I've tried to do the same but with a different company now I've been told it'll be 80 pounds a month for 6 years but they keep coming back saying they want me to get a full time job I'm currently working part time to look after my partner and 2 children we have a joint universal credit account wich covers the rent and some of the bills my partner has applied for pip and if accepted I'll get a carers element now the iva company are saying for this to go forward they want 60% from my partners pip and 60% from my carers allowance it's becoming a joke and very frustrating it's been nearly 3 months since I started the application and this back and forth negotiations is becoming very tasking I've herd of bankruptcy but haven't looked to much into it as it scares me is it something I should consider is and iva completely different to going bankrupt I really don't know what to do can anyone offer any advice please. 

monetxchange

I think the problem here is the companies you speak of want to benefit by making money out of you taking an IVA. Have you spoken to someone independent like a debt help charity like Stepchange? Your debt isn't that huge and bankruptcy seems a big step. Have you looked into eligibility for a debt management plan (DMP)?

sharpe106

Before doing that do a statement of affairs and I am sure some people on here will give you more information of your options and who best to approach for further assistance.

https://www.lemonfool.co.uk/financecalculators/soa.php

sourcrates

Ditch the IVA application.
An IVA is never suitable for debts like yours, IVA’s were designed for homeowners who have massive debt, but cannot go bankrupt due to the assets they own.
Bankruptcy is too extreme for 10k.

In your situation you should possibly be looking at a debt relief order, to qualify you need -

debts of less than 20k

Must not be a homeowner 
not have assets or car worth more than £1000 each
must have £50 or less at month end after all bills are paid (not including debt repayments).

Failing that a debt management plan, get some independent free advice from stepchange or National Debtline.
Not from a fee charging debt management company.

Shaunw1987

Thank I've just looked into the dro and I won't qualify I have more than 50 pounds left over also my car is worth more than 1000 not a lot more but still higher I haven't yet spoken to stepchange I've only just herd of them from browsing this forum are they well recommended? There are so many different companies to choose from its mind blowing. How does a dept management plan work differently to an iva? Is it normal for iva company's to take into account partners incomes this is my debt and feel its totally unfair my partner should suffer financially for it?

RAS

HI There are debt companies who make their millions by charging people like you lots of money to mange their deby, often not paying much to the creditors,
And there are debt charities like stepchange and National Debtline, both in sourcrates sig above, who do not charge you fees unless you decide on and IVA, probably not appropriate in your case anyway, They do get some money from the finance industry, but they are motivated to help you sort out your debt, not to make as much money from you as possible.

So speak to National Debtline or stepchange and see what they suggest.

sourcrates

Shaunw1987 said:

Thank I've just looked into the dro and I won't qualify I have more than 50 pounds left over also my car is worth more than 1000 not a lot more but still higher I haven't yet spoken to stepchange I've only just herd of them from browsing this forum are they well recommended? There are so many different companies to choose from its mind blowing. How does a dept management plan work differently to an iva? Is it normal for iva company's to take into account partners incomes this is my debt and feel its totally unfair my partner should suffer financially for it?

How much more ?

Have you budgeted correctly ?

Probably not to be fair, no one does at first, car value is judged by Parker’s guide, lowest quote usually, do a proper SOA (budget) using our tool in the sticky thread, forget IVA, and debt management companies, you need debt advice from a debt charity not trying to sell you something.
An IVA is an official insolvency solution, a debt management plan isn’t, if you don’t qualify for the DRO, then it’s debt management time.

Shaunw1987

It's worth around 1800 the reason I went for the iva initially was alot of the dept would be written off and the monthly payments were affordable 80 pounds for 60 months was perfect untill they suggested taking money from my partners income I don't understand the reson behind it as previously stated my partner is with an I've and she's was never asked about anyone's income except her own. 

Shaunw1987

With regards to a dmp how much would I be expected to pay and for how long? 

RAS

Shaun
You really do need to do the statement of affairs in the Sharpe's post.

And then speak to a debt charity. 

If after all that you want to do an IVA with a debt company, that's your choice.

But at least it's an informed choice not a panic stricken mistake.

Shaunw1987

I'll get on it in the morning I have all our income and expenditure details written down and know what's left over ext I started this process 3 months ago with the pandemic I think this process has taken longer than it usually would it's only as of today I'm second guessing my choices because of what they are wanting I'll give stepchange a ring tomorrow and hopefully they will put me on the right track.