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before going bankrupt

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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?
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  • fatbelly
    fatbelly Posts: 20,716 Forumite
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    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
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    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
    fatbelly Posts: 20,716 Forumite
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    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
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    In the DRO you mean surplus income after all my expenses including my loan payments?
  • pendramoon
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    here is my financial statement.
  • pendramoon
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    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
    fatbelly Posts: 20,716 Forumite
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    edited 23 September 2020 at 12:23PM
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    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
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    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
    sourcrates Posts: 29,030 Ambassador
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    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.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • sourcrates
    sourcrates Posts: 29,030 Ambassador
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    I had to delete your post as you listed your name and address on your new SOA.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
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