before going bankrupt 22 September 2020 at 11:15AM in Bankruptcy & living with it 14 replies 894 views

pendramoon

Hi I have 25 k debt and planning to go bankrupt. 
My grandmother is living abroad and she is very old if something happens to her and I would need to move closer to her so I can help to look after her would I be able to make My bankruptcy payment or do I need to inform the OR if I get a job abroad to recalculate my expenses?

I might think in IVA however I do lots of over time to be able to cover our expenses do I get my over time separately cut to cover the IVA or I have a calculated fix amount I will have to pay. 

Also if I have my family member helping out with my debt and I managed to go under 20k would a DRO  would be better than a bankruptcy?

fatbelly

Well that's three strategies you are considering.

Have you had a chat to anyone  about your situation? Someone without a product to sell.

I recommend National Debtline https://www.nationaldebtline.org/EW/Pages/default.aspx

If you wanted  us to give our opinion we'd need a statement of affairs and there is a calculator here (format for mse):

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

pendramoon

Thank you for the advice, but I think I will go down one route if I know the answer for these questions. also if I have DRO would it be affected if I need to go home? also with covid, it is quite difficult times having vounorouble people in the family.

fatbelly

You can only have one form of insolvency at one time.

If you go bankrupt and get an IPA then that can be varied up and down as your income changes. Working abroad makes no difference. You must keep the Official Receiver notified of all changes. An IPA lasts 36 months

An IVA lasts 60 months. I can't see why that would have any advantage for you if you have no asset to protect.

A DRO is only available if your surplus income is less than £50 per month. Like bankruptcy, you must keep the Official Receiver notified of all changes.  A third party can do what it wants with its money but it may be better spent giving you the £680 bankruptcy fee.

I still recommend  talking to National Debtline as you've given so little information about your circumstances we could well be missing something.

pendramoon

In the DRO you mean surplus income after all my expenses including my loan payments?

pendramoon

here is my financial statement.

pendramoon

Would you contact the lenders to ask for token payment to save some cash up? Maybe I can pay some of the lenders like utility companies and have a better stand.

fatbelly

pendramoon said:

In the DRO you mean surplus income after all my expenses including my loan payments?

Surplus income is what you have available after essential payments before debts - you will not be paying your debts in a DRO.

Your soa shows £762 available and debts £24474. Why are you only looking at insolvency options? I would have thought a debt management plan over 3 years would be the best option..

pendramoon

For now, I thinking to apply for token payment and do the calculator properly. and get my debt under 20 k with in 6 months and after get a DRO

sourcrates

With that much disposable income a DRO is out of the question.
You must have £50 or less, you have £762, it’s not gonna happen on those figures.

sourcrates

I had to delete your post as you listed your name and address on your new SOA.