I'm in trouble

Houndog6105

flipflopflo said:

Who are the other 3 adults in your household? Are the children yours?

An IVA is definitely not suitable for you as you have no assets to protect. What ever debt solution you go for you will be getting defaults as you are £300 short of funds to make minimum payments. 

My wife and my two kids which are both our children yes

Houndog6105

gozaimasu said:

@Houndog6105

https://www.stepchange.org/how-we-help/debt-relief-order.aspx

As previously advised, don't go for IVA. You might want to choose a debt relief order instead. Get in touch with Step Change and they'll walk you through all the steps you need to take to help with your debts.

Can I ask why is everyone against the iva so much as I thought it was probably the best option

I'll use the link you provided thankyou

fatbelly

Houndog6105 said:

gozaimasu said:

@Houndog6105

https://www.stepchange.org/how-we-help/debt-relief-order.aspx

As previously advised, don't go for IVA. You might want to choose a debt relief order instead. Get in touch with Step Change and they'll walk you through all the steps you need to take to help with your debts.

Can I ask why is everyone against the iva so much as I thought it was probably the best option

I'll use the link you provided thankyou

Because it's a formal insolvency solution which is best viewed as bankruptcy for someone with an asset to protect.

In an IVA you pay your surplus income for 60 months (usually 72 in the case of a homeowner)

In bankruptcy, you pay for 36 months

In a DRO (for which you do not appear to qualify) you make no payments.

The usual alternative to insolvency is a debt management plan and on your figures that would take around 4 years, possibly less if you finish off with some settlement deals. I don't see any need to declare insolvency.

fatbelly

There are some bits I don't understand about your soa:

You have £60 for petrol but other aspects of a car don't appear. Motobility?

Nothing for clothes?

Council Tax is low - is that after council tax support? Make sure you're not double counting and that the £2100 benefit income is all available for you to spend.

You don't buy birthday/Christmas presents and never take a holiday?

Houndog6105

fatbelly said:

There are some bits I don't understand about your soa:

You have £60 for petrol but other aspects of a car don't appear. Motobility?

Nothing for clothes?

Council Tax is low - is that after council tax support? Make sure you're not double counting and that the £2100 benefit income is all available for you to spend.

You don't buy birthday/Christmas presents and never take a holiday?

Due to the debt we haven't been buying clothes or anything like holiday or hobbies or kids clubs so that's why I wasn't sure if I should add it or not. Yes your correct the car is motability scheme and correct with the council tax too. So I should be looking at a debt management plan you think? How come I don't qualify for the DRO?

fatbelly

A DRO has a maximum disposable income of £75 per month. Now I did say 'on those figures.'

If you apply sensible expenditure on things like presents and clothes, and a bit more for food, bear in mind that a DRO is an individual solution so everything joint can be halved...

...also DLA/PIP is effectively exempted as income...

then it might all look a bit different.

I would say that you need firstly to be doing all your banking somewhere where you do not have debts (whatever the strategy) and then start talking to Payplan or Stepchange (possibly both) as they are the ones who do DMPs without a fee. Both of them are 'competent authorities' for DROs and so if they work out that you are eligible for one they should facilitate that.

I would put creditors on hold with something like 

https://www.nationaldebtline.org/sample-letters/hold-action-your-account/

and accept you are going to default.

Payplan/Stepchange may put you into formal Breathing Space while they formulate a plan. Personally I think that's a lot of hassle for no gain but it's up to them.

Houndog6105

fatbelly said:

A DRO has a maximum disposable income of £75 per month. Now I did say 'on those figures.'

If you apply sensible expenditure on things like presents and clothes, and a bit more for food, bear in mind that a DRO is an individual solution so everything joint can be halved...

...also DLA/PIP is effectively exempted as income...

then it might all look a bit different.

I would say that you need firstly to be doing all your banking somewhere where you do not have debts (whatever the strategy) and then start talking to Payplan or Stepchange (possibly both) as they are the ones who do DMPs without a fee. Both of them are 'competent authorities' for DROs and so if they work out that you are eligible for one they should facilitate that.

I would put creditors on hold with something like 

https://www.nationaldebtline.org/sample-letters/hold-action-your-account/

and accept you are going to default.

Payplan/Stepchange may put you into formal Breathing Space while they formulate a plan. Personally I think that's a lot of hassle for no gain but it's up to them.

Ok thankyou for your help I appreciate it