bankruptcy or iva

tracytaxi

Hi hubby has now left, tax credits are through as a single parent took ten days I was impressed.
Currently on debt management plan with payplan, however couple of debts not on the plan-I have terminated my hp contract for car and will eventually get a settlement figure for surrendering it I think about £7,000 , might be less no idea. I currently have debts not including this of £22,000 , £10,000 of this is LLoyds bank, who have just wrote to me and offered a reduced settlement of £2,000, , I have some of my whiplash compensation and thought about offring them a grand and see if they will take it to reduce my overall debt, but not sure.

Paypaln suggestion that now I am employed as opposed to self employed that I look at an IVA income is £225 wages per week, £2oo tax credits (I have disabled daughter),£42.30 child benefit, and my daughter dla £60 per week. I don't want to use dla for debt though. If an IVA included my wages and tax credits I could afford £250 a month for IVA.

or would I be better off going bankrupt, if I decide on bankruptcy, how do I make sure I don't lose home phone and internet as I currently pay on monthly direct debit through the bank, even if I settle the the budget account with bt the OR will still know about Bt from the bank statements.

Also where would my wages go and my benefits when my barcalays and natwest account are frozen ( i have no debts with either).As my wages and benefit are all paid weekly on mondays, wednesdays and thursdays. I jhave got a coop account I dont use a cash minder I don't use it as there is no coop in our town,

Sorry finally the or asks to see bank statements but the Barclays one was a joint one with hubby and I don't think hubby will agree on the OR having his private stuff.
Sorry for going on and on.

Scarlett.1974

tracytaxi wrote: »

Hi hubby has now left, tax credits are through as a single parent took ten days I was impressed.
Currently on debt management plan with payplan, however couple of debts not on the plan-I have terminated my hp contract for car and will eventually get a settlement figure for surrendering it I think about £7,000 , might be less no idea. I currently have debts not including this of £22,000 , £10,000 of this is LLoyds bank, who have just wrote to me and offered a reduced settlement of £2,000, , I have some of my whiplash compensation and thought about offring them a grand and see if they will take it to reduce my overall debt, but not sure.

Paypaln suggestion that now I am employed as opposed to self employed that I look at an IVA income is £225 wages per week, £2oo tax credits (I have disabled daughter),£42.30 child benefit, and my daughter dla £60 per week. I don't want to use dla for debt though. If an IVA included my wages and tax credits I could afford £250 a month for IVA.

or would I be better off going bankrupt, if I decide on bankruptcy, how do I make sure I don't lose home phone and internet as I currently pay on monthly direct debit through the bank, even if I settle the the budget account with bt the OR will still know about Bt from the bank statements. The OR has no problem with you having a home phone at all The internet you will be expected to pay for out of your 'surplus', but neither of these should be a problem. Our bank accounts clearly showed our monthly payments to BT and our payments to Sky (for BB) and the OR did not question these at all

Also where would my wages go and my benefits when my barcalays and natwest account are frozen ( i have no debts with either).As my wages and benefit are all paid weekly on mondays, wednesdays and thursdays. I jhave got a coop account I dont use a cash minder I don't use it as there is no coop in our town, For your benefits, you could arrange for them to be paid by giro-cheque for as long as you need them to. You could probably start using the co-op account (is it definitely a cashminder one?) for your wages. Once you explain to the OR that it is just a basic account with no OD facility he/she should be fine for you to use this account. Re having no branch local to you - you can pay into the co-op via the post office

Sorry finally the or asks to see bank statements but the Barclays one was a joint one with hubby and I don't think hubby will agree on the OR having his private stuff. He won't have a lot of choice I'm afraid. If you don't have the statements and your ex won't give them to you, then the OR can easily get them from Barclays if he needs them.
Sorry for going on and on.

Good morning tracy. Hope the above helps a little

fiveyearplan

Hi Tracy, have you spoken to CCCS about your new situation?

tigerfeet2006

As 5YP says have you spoken to CCCS?

Also have a read of some other threads where people are asking the same question. This one is interesting for Debt Doctors input.
http://forums.moneysavingexpert.com/showthread.html?t=812577

debt_doctor

Hi Tracey, How much equity do you have in your home and what do you do for a living ?

DD

tigerfeet2006

Morning DD. If I remember correctly she rents a HA house and is a bus driver.

EDIT: Just checked and she is HA.

debt_doctor

Morning Tigs, thanks for the info !

This is where Paylan start to worry me. Why are they suggesting an IVA to someone on a moderate income, with 3 children to support and no assetts ?

Making money I would suggest.

Presuming you have not commited any BR offences or wish to be a company director or charity trustee, then BR would be a far better and cheaper option for you.

In an IVA you would pay £ 250 pm for 5 years = £ 15,000. In BR I doubt you would pay anything to an IPA so would cost you one off fee's of £ 485 ( max).

No contest.

DD

tigerfeet2006

Thanks for that assesment DD. I am sure it will help Tracy.

tracytaxi

Hi to all you lovely people, what a day !!! Ex husbands, daughter want to go and live with him, rows and tears since 12, some day off,
not that I know of commited any br offences, I rang the OR a little while ago about my whiplash injury money and they said they would not touch that.
The coop account is a cash minder account. However Barclays once it is in my name only is a non overdraft account and i would like to keep it if they allowed it, I dont know if Barclays would.

Cant get my wages my giro as I already asked that and i am not sure about the tax credits, and I don't have any one else to ask. I suppose paying off Lloyds would be wrong if going bankrupt.

I have bought a cheap car now which I presume theOR will let me keep as I cant get to work otherwise , with the hours (early or late starts) that I work, and if I didn't have the car would not be back in time for kids,
Feeling really low today, not just the debts but all the other pressures, my first ex husband and my soon to be ex too.
Do you think if I spoke to barclays they might keep the account if the OR is happy. Thinking about it I have a prepaid Tuxedo account my wages could be paid into, would the OR freeze that or need he not know about the prepay card?

Don't know how rambling this is got a cold , eye infection, broken toe,and been in tears all day.sorry folks,not always possible to pick youself up, and my mum can't cope with helping as she has not got over losing dad 4 years ago this july. catch you all later

Not spoke to cccs again yet.

Toon_Dave

Hi Tracy,

sorry to hear that your day has been so bad, hopefully we can assist.

Your Barclays account, is it the basic account? if so then they are one of the BR friendly banks and so shouldnt be an issue with the OR or them. Ask them to downgrade to the basic if it isnt already - you would lose any debit cards, cheque books etc but you would still be able to have a cashcard for withdrawls and DD's and SO's work just the same.

Also, paying off the lloyds debt would be classed as favouring a Creditor to make it look more favourable during the BR...this would be frowned open by the OR and may cause more aggro for you...so i would either pay min payments if you can or stop completly to save for the BR etc.

Hope this helps, Speaking to the CCCS would be the next step as you havnt yet.

List the questions and points we have all raised from here for the phone call on tuesday then they will be able to answer them straight away for you.

Best of luck, and hope you feel better soon.

Dave.

Scarlett.1974

tracytaxi wrote: »

Hi to all you lovely people, what a day !!! Ex husbands, daughter want to go and live with him, rows and tears since 12, some day off,
not that I know of commited any br offences, I rang the OR a little while ago about my whiplash injury money and they said they would not touch that.
The coop account is a cash minder account. However Barclays once it is in my name only is a non overdraft account and i would like to keep it if they allowed it, I dont know if Barclays would.

Cant get my wages my giro as I already asked that and i am not sure about the tax credits, and I don't have any one else to ask. I suppose paying off Lloyds would be wrong if going bankrupt.

I have bought a cheap car now which I presume theOR will let me keep as I cant get to work otherwise , with the hours (early or late starts) that I work, and if I didn't have the car would not be back in time for kids,
Feeling really low today, not just the debts but all the other pressures, my first ex husband and my soon to be ex too.
Do you think if I spoke to barclays they might keep the account if the OR is happy. Thinking about it I have a prepaid Tuxedo account my wages could be paid into, would the OR freeze that or need he not know about the prepay card?

Don't know how rambling this is got a cold , eye infection, broken toe,and been in tears all day.sorry folks,not always possible to pick youself up, and my mum can't cope with helping as she has not got over losing dad 4 years ago this july. catch you all later

Not spoke to cccs again yet.

Hi Tracy,

Sorry to hear you've had such an awful day

Tax credits you can definitely have paid by giro; I know because I did for 1 payment while I was waiting for my co-op account to be opened

I can't see it being a problem having your wages paid onto the pre-paid card. The OR won't have a problem with this card as long as you explain to him/her carefully (because some of them don't know about pre-paid cards) what it is and that it isn't a "normal" credit card

You should be okay to keep the Barclays account open as long as the OR lets them know he/she has no interest in this account. As has been said, they are one of the few BR 'friendly' banks