Bankruptcy or IVA....Decided BR is the better option but I have so many questions!

dazedandconfusedgirl

Hi
I'm sorry if I seem really naive and thank you in advance to anyone that can help me out as i'm feeling very lost, confused and anxious right now. I have completed an assessment of my situation with Stepchange and the outcome was either an IVA or Bankruptcy. I feel like Bankruptcy is the better (?!) option for me as I can't live with the stress and anxiety of this any longer. I have massive concerns though, I can't honestly give a reason as to why I find myself in this situation other than my marriage breakdown 3 years ago, suffering from depression and being mindless with money, I haven't had holidays or brought anything luxury, I have had to buy "white goods" and furniture for a property I now rent but these were actually brought all for less than £500 (at lot less in the case of washing machine etc.). I'm concerned that I'm not going to be able to explain why to the OR?! I have used credit cards then consolidated with a loan and then ended up using credit cards again to cover vet bills and  food shopping etc.
I have done a SOA which I have put below, everything is accurate with the exception of the Vet fees/pet insurance. My pet has had a lot of health issues and is insured at the cost of £120pm, As in most cases have to pay the vets for treatments and then claim it back from the insurance company. I have accounted £250pm on the SOA as I will need to ensure I have enough money available to cover any further treatment he needs (although this will probably not be enough). I know this seems absolutely insane money to spend on a dog but he is more than a pet to me and he is a therapy dog to help me cope with mental health issues. Grocery may seem higher but I have included smoking in this section as well as I have seen this has been advised on other posts. 
My final query as with most people is my sole asset which is my car. I have to have a decent car for my job as I am required at any point to attend sites/clients all over the country and I can't have something that is unreliable as I wouldn't be able to do my job. I also have to be able to see my parents who live separate and are both pensioners my dad has a lot of health issues and in the past 18 months has had both knees and a hip replacement. A car is essential to me and having looked on autotrader it's possibly worth in the region of £3500 at a dealer. Is this going to be a massive issue? I never paid for the car it was paid for by my ex husband but I am the registered keeper.
Thank you all sooooo much for any help and advice!!

[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

Household Information[/b]

Number of adults in household........... 1

Number of children in household......... 

Number of cars owned.................... 1[b]

Monthly Income Details[/b]

Monthly income after tax................ 1924

Partners monthly income after tax....... 0

Benefits................................ 0

Other income............................ 0[b]

Total monthly income.................... 1924[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 0

Secured/HP loan repayments.............. 0

Rent.................................... 400

Management charge (leasehold property).. 0

Council tax............................. 89

Electricity............................. 20

Gas..................................... 25

Oil..................................... 0

Water rates............................. 19

Telephone (land line)................... 0

Mobile phone............................ 52.5

TV Licence.............................. 14

Satellite/Cable TV...................... 17

Internet Services....................... 25

Groceries etc. ......................... 350

Clothing................................ 50

Petrol/diesel........................... 50

Road tax................................ 13

Car Insurance........................... 44

Car maintenance (including MOT)......... 25

Car parking............................. 5

Other travel............................ 0

Childcare/nursery....................... 0

Other child related expenses............ 0

Medical (prescriptions, dentist etc).... 20

Pet insurance/vet bills................. 250

Buildings insurance..................... 0

Contents insurance...................... 14

Life assurance ......................... 0

Other insurance......................... 0

Presents (birthday, christmas etc)...... 25

Haircuts................................ 25

Entertainment........................... 75

Holiday................................. 50

Emergency fund.......................... 50[b]

Total monthly expenses.................. 1707.5[/b]

[b]

Assets[/b]

Cash.................................... 0

House value (Gross)..................... 0

Shares and bonds........................ 0

Car(s).................................. 1500

Other assets............................ 0[b]

Total Assets............................ 1500[/b]

[b]

No Secured nor Hire Purchase Debts[/b]

[b]Unsecured Debts[/b]

Description....................Debt......Monthly...APR

Vanquis........................4000......199.......0

Barclays loan..................21697.....508.......0

Virgin Credit Card.............5000......150.......0

PRA Group......................1526......77........0

Hoist Finance (on DMP..........1470......74........0[b]

Total unsecured debts..........33693.....1008......-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 1,924

Expenses (including HP & secured debts). 1,707.5

Available for debt repayments........... 216.5

Monthly Unsecured debt repayments....... 1,008[b]

Amount short for making debt repayments. -791.5[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 1,500

Total HP & Secured debt................. -0

Total Unsecured debt.................... -33,693[b]

Net Assets.............................. -32,193[/b]

[i]Created using the SOA calculator at www.stoozing.com. 

Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

luvchocolate

Hi and welcome 
As you said your pet costs are high and you may have to show prove of treatment etc. 
You've said your car value approximately £3500 but at the bottom £1500 there is a big difference..what is the true value?
I got to keep a car valued at £1700 as a relief manager I covered 36 different sites. 
When I explained I needed a reliable car and had mine from new the examiner told me reliability didn't come into his decision but he was very fair with me. 

sourcrates

Hi,

Then the owner of the car is your ex husband, not you, anyone can be a registered keeper, and have use of the vehicle, it is not a conformation of ownership, in bankrupcy any car you personally own, must be around the £1000 mark, no more, unless there are extreamly good extenuating circumstances.

You have no real disposable income in your budget, so an IVA would not really benefit you much, it would be a long 6 years on a very tight budget, nothing in your SOA is telling me an IVA would be appropriate here, i would opt for bankrupcy.

The OR is not looking to delve into every corner of your life, they will simply ask you how the debt accrued, its much more of a box ticking excercise than an interogation, no one who declares bankrupcy does so with a clean financial bill of health now do they.

Usually after 12 months you are discharged, and thats about the end of it, 5 years later it will disapear from your credit file.

Just on a personal note, maybe try and quit the old coffin nails, they aint called that for nothin !!

Good luck.

dazedandconfusedgirl

luvchocolate said:

Hi and welcome 
As you said your pet costs are high and you may have to show prove of treatment etc. 
You've said your car value approximately £3500 but at the bottom £1500 there is a big difference..what is the true value?
I got to keep a car valued at £1700 as a relief manager I covered 36 different sites. 
When I explained I needed a reliable car and had mine from new the examiner told me reliability didn't come into his decision but he was very fair with me. 

Sorry thats a typo! It will be approx £3-3.5k. I think i'm nervous with my name being on the V5, I had a car from my dad but when that gave it's all we got my current car which remained in my name as a replacement but my (now ex) husband paid for it  so it's essentially co-owned by my dad and ex! Thank you for taking the time out to respond.

Minkym00

Do you have proof of who paid for the car? The thing is that it could be construed as a gift from your ex, and therefore yours. You may be asked to prove your ex’s interest in it, so are you friendly enough to ask him to provide a letter?

Morfx

I'm sure on the logbook it states " This is not proof of ownership"..