Trying to decide what to do

tinks86

Good morning,

I have questions which I'm hoping you can all help with one way or another. 

For one reason or another I've buried my head in the sand over my debts and now trying to find a way out. 🤯

I owe around £30000 to various people 2 of which are a ccj. 

I have done a I come and out come and have around £80-£100 a month left after everything. I am on the verge of signing a IVA but also have a nagging voice in my head telling me bankruptcy instead. 

I'm really struggling to come to a decision about which to go for.  

Do I go bankrupt and have no extra outgoings

Or

An IVA for 5years and having that "spare money" (£80-£100) to pay that!!

Please help as everything I try and read online and understand is mind blowing!!

Great full for any help

luvchocolate

Your first point of call needs to be one of the debt free charities. I used stepchange.  Do you own your home? Car?

tinks86

I own a car thats worth about £500

sammyjammy

Do not sign up to an IVA, this is a very specific product that is suitable for certain circumstances, unless you own an original Van Gogh or similarly valued asset its not for you

Definitely contact one of the debt charities, a DRO is a possiblity.

Read more here https://nedcab.cabmoney.org.uk/remedy_5.asp

flipflopflo

Please can you also do a SOA and format to MSE and pop up on here so we can help advise you better. 

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

sourcrates

Look into a DRO (Debt Relief Order) as advised above, 30k is the absolute limit though, so you need to know your exact debt balances.

Do some research and see if you fit the remainder of the criteria.

fatbelly

The other important criterion is a maximum surplus income of £75 per month. But if an IVA  pusher thinks you have £80 surplus, you're probably there already.

As said earlier IVAs are bankruptcy for those who need to protect an asset like a house. If you don't have one, then DRO or bankruptcy is the way forward, probably hinging on whether you are above or below 30k in debt

MalMonroe

I agree with the advice of contacting StepChange. It's a free debt help service and I always say they saved my life. They really did! 

In my experience, they are non-judgemental, friendly and very knowledgeable.

They advised me to apply for a DRO and they helped me to do everything. It was also a really big relief to be able to talk to someone about my troubles and worries. A big weight was lifted from my shoulders the day I contacted them. 

Here's the link -  https://www.stepchange.org/   The call is free so even if you don't take their advice, it's cost you nothing. But they do know what they are talking about. 

You're facing up to things and that's the first step to becoming debt free. Good luck.