General questions and worries for bankruptcy..

sourcrates

Callum1510 said:

I’ve been advised by payplan that an IVA is the way forward but I’ve looked at their reviews for IVA online and they are shocking can anyone point me in the right direction of a good company to do an IVA? not sure why they don’t seem to think I’m elegible for DRO as I have less than 75 pound left after everything. Also no house or assets and I live in my partners house. Can anyone help me with what’s best for me to do? Thanks 

Get yourself over to the debt free wannabe board, post a statement of affairs,(link in my signature) and we can get the ball rolling on this.

We have a good general knowledge base of folk who can help on choosing the right debt solution for you, not what some 3rd party company wants to sell you, see you over there.

Marsha2007

Just browsing but have to say.  I went bankrupt in 2011, I know it's a long time ago now, but assume the process is more or less the same.  I went to the court office, paid my money and was given a date to go to the courts.  Scary, but was in and out within a few minutes with the Bankruptcy order in place.  Then had to wait for the OR's phone call, which was just a run through of everything and all the outgoings I had, really simple and wasn't made to feel like I'd done anything wrong or anything.  And that was it...the relief was immense and the weight lifted off my shoulders was huge.  I think I slept properly that night for the first time in months.  The only thing I'd say is get a bank account sorted out so any income can go in there as you won't be able to access your original account.  I swapped all DD's into my husband's account so they could all still be paid.  I was discharged a year later and 14 years on I've just been brave enough to apply for another credit card, just to start working on my credit rating.  I have to admit though I am absolutely petrified of getting to that stage again, and whilst I have a little balance on the credit card, I can't bear the thought of getting anything else on credit, so if I can't afford it I don't have it.  At the time I was really embarrased about it all, but now I'm not embarrased at all and will happily talk about my experiences if asked, although I don't tend to shout about it all!!  I hope you get everything sorted out, whilst a drastic step, it was the best thing I ever did.

ManyWays

Callum1510 said:

Hey, I have a query wonder if you can help. I am struggling with debt around 35k and thinking of bankruptcy although I have spoken to step change and they are putting me off this. They said I may have a beneficial interest in my partners home which may result in issue during bankruptcy. 

I have 35k debt, have no assets, don’t own car or house. I live with partner in her house where I have been paying her rent for several years and only she is on mortgage. Do you for see an issue if I go bankrupt? I do not want to drag her into this and she end up having to lose the house. 

Thanks in advance 

Can you say some more about your partners house. When did you start lining together and when did she buy her house? If it was after you started living together, where did the deposit come from - all from her or did you contribute any? Have you paid for any house improvements such as a new kitchen or windows? How much rent do you pay a month? How much is her mortgage? How much do you earn and how much does she earn? 

Some of these questions may not be relevant, but its hard to guess without knowing the answers!

If you have less than £75 a month left then you should NOT be considering an IVA with anyone. Payplan is no worse than other IVA firms. IVAs are very intrusive, long-term contracts where the odds are stacked against people with little spare money; if you get more money, the IVA payments go up, if your income drops, the IVA will fail, leaving you back with the debts.

ManyWays

sourcrates said:

... Anyone who may have a beneficial interest in a property should perhaps consider a DRO instead of bankruptcy, as it may be more suitable....

A real beneficial equity problem will probably prevent you getting a DRO.  The IS uses the same approach for DROs as bankruptcy. See this extract from the A-Z questions for DROs:
https://www.gov.uk/guidance/debt-relief-orders-guidance-for-debt-advisers#beneficial-interest

(NB those questions are the starting point. Being married on its own does NOT mean you have a beneficial interest, and you may have a beneficial interest if you are not married.)

croakle

Be careful about advice from well meaning people who do not know your situation.

In my case bankruptcy was inevitable but still a stressful and terrifying prospect but once the application was made I felt instant relief, and was the best thing I could have done.  I was in rented accommodation, had a cheap car, and was working so really things stayed the same but the debt went away.  However, everyone is different and there are always ongoing effects that last for years afterwards.  There are often ways to make any situation a little bit better.

luvchocolate

We are very lucky to have people who are professional in this field replying to posters