80k debt, shared ownership & self employed. IVA or something else?

JoeBloggz00

That’s what I was told too @fatbelly - I can’t afford a DMP. I was told I would need to pay at least £650 a month just towards the non priority and don’t have that. 

Stepchange wouldn’t talk to me and as soon as I mentioned being Self employed/director I was referred to the business debt helpline. They know none of my debt is linked to my business and are a charity, so don’t make anything from helping me, but would refer me to a
panel of IPs who would handle the iVA for me, while they supported me through it. 

Yes @sourcrates - I was told by the chap at the BDL that just the AA would need to be convinced to go with it, but I’ll check that again with him. 

My other option, which was mentioned to me today, was to move in to rental and bankrupt myself. Or move to another shared ownership so I can release the 45k equity, buy myself some time with a breathing space request, and then see if I cam make that cover all my debts with a full and final settlement offer to each of them, drastically reduced, or threaten to bankrupt. 

I think for my mental health, a DMP isn’t right for me as I can’t have that hanging over my head for 80 years. 6 years still really panics me as what if I can’t pay it one month due to something else cropping up. For instance last month I had to credit card two new tyres on my car as I need my car for work and school every day (live rurally), but if I didn’t have a credit card to rely on I would be Knackered. It’s such a scary viscous circle. 

sourcrates

gizmo111 said:

These are all personal debts and your income is not stable - I would go for token payments for a couple of months and tehn a realistic DMP - much easier than a IVA.  Not sure why  business debtline got involved, you may have used the credit for the business but the company doesn't owe them - although it may well owe you!

Spendy_no_more said:

I don't see IVA's recommended very often on here (due to the fees involved and the fact it's 'sold' to people), the first answer is almost always a DMP so would be good to hear from the experts about why an IVA would / could be more suitable in this situation - or can a DMP be more suitable? 

The OP lacks enough disposable income to propose a realistic DMP, as has been mentioned, a DMP @ £80 per month, on a debt of 80k, would take 80 plus years to complete, obviously never going to happen.

However an IVA would work for him, this situation is almost a text book example of when an IVA is appropriate for you, as it would work as they are supposed to work, the OP has a small amount of disposable income, massive debts, and is a homeowner, ideal candidate for an IVA.

He makes 60 payments of say £100, re-paying approx. 6-7k plus fee`s, after which any remaining debt is written off, in this case almost 70 grand.

JCS1

I would rule out bankruptcy, you cannot be a director of a limited company if you did.

Have you recorded the money as directors loans in the company accounts?  Is the company doing well enough to pay some money back off the loans?

fatbelly

sourcrates said:

The OP lacks enough disposable income to propose a realistic DMP, as has been mentioned, a DMP @ £80 per month, on a debt of 80k, would take 80 plus years to complete, obviously never going to happen.

However an IVA would work for him, this situation is almost a text book example of when an IVA is appropriate for you, as it would work as they are supposed to work, the OP has a small amount of disposable income, massive debts, and is a homeowner, ideal candidate for an IVA.

He makes 60 payments of say £100, re-paying approx. 6-7k plus fee`s, after which any remaining debt is written off, in this case almost 70 grand.

I agree. 

The thing is that this will be difficult to push through. It would have been better is there HAD been one creditor owning 75% of the debt. As things stand there will be a lot of creditors who will have to be convinced to vote for the proposal.

I don't know who Business Debtline use but I suspect they will be better than the firms that use the cold call lead generators, so I think the OP has done the best that they can to get a solution here.

JoeBloggz00

Thank you all. I think it’s definitely the best route for me too, so I’ll get back in touch with the business debt line tomorrow and see who they suggest me to speak to. 

Thanks for all your help, let’s hope they accept the IvA proposal as I’m not sure what I’ll do otherwise.