Which way to turn?

johannamse

they will still let you have A car. Might not be a rolls, but to get to work you only need a £500 banger.

Stuffed_2

johannamse wrote:

they will still let you have A car. Might not be a rolls, but to get to work you only need a £500 banger.

I'll be happy with a banger! Thanks for the info' johannamse :beer:

Funny tho'.... as an old banger is more costly to run long term due to repair etc.

What happens if you come across a large bill for say car repair or for dental treatment etc. Do they make allowances?

fatbelly

You said your take-home was £1050 per month. I would guess the Official Receiver wouldn't take any of your income at that level ... but I could be wrong. So you should be able to fund minor emergencies each month.

Er, you mentioned 'mortgage' - you weren't a joint owner or anything like that, were you?

Stuffed_2

Sorry if I wasn't clear fatbelly. I was making the funds available so my mum could pay her mortgage. I don't have a mortgage.

I'm unclear on what you mean about the O.R. taking any of my income at that level. Could you explain a little please, ta!

fatbelly

From the National Debtline factsheet on bankruptcy:

Will I have to pay anything from my wages?

This will only happen if your income is above the average and appears that you might have available income after paying ordinary household expenses. The Official Receiver can look at your income and expenditure and decide if payments should be made and at what level. When looking at how much you could pay they will take into account essential expenses such as your mortgage, rent, household bills and housekeeping.

Income Payments Orders & Income Payment Agreements

Under The Enterprise Act most bankruptcy orders will end after one year. You may be asked to sign a legally binding agreement to pay monthly instalments from your income to the Official Receiver for 3 years from the date of the agreement. This is called an Income Payments Agreement. If your circumstances change then you need to tell the Official Receiver as the agreement can be looked at again. If you do not pay the Official Receiver can go to court for an Income Payments Order instead.

If you do not make a voluntary agreement then the Official Receiver can ask the court to order you to pay the instalments they want. This is called an Income Payments Order and will run for 3 years from the date of the order. You can ask the court to look at this order again if your circumstances change.

What I was saying is that at £1050 per month, I don't think they'd bother.

jen_jen_2

Stuffed wrote:

What happens if you come across a large bill for say car repair or for dental treatment etc. Do they make allowances?

this is why you seriously need to learn how to budget, include everything christmas, birthdays, optician, repair bills and spread the cost over the year, out of each monthly wage you receive you have to set aside money for those expenses, the theory being that when those big bills arrive you have money to pay them and dont have to borrow so dont accrue interest charges etc etc

check out martins budget, its a great place to start to think about all those expenses, if you go bankrupt or have a dmp then you will need to do this too.

i agree with fatbelly, the OR may not take a payment from your wage but it is is up to you to demonstrate to the OR that all your wage is spent on essentials (and this does include dentist, etc)

the car, the OR will let you keep a car if its for work if the car is of value they may sell it and allow you to buy a cheaper one, but the ORs do understand that there are costs to this and will only do it if its worthwhile - so the car has to be worth several grand.

Stuffed_2

Hiya

Just a quick update.

I've just finished my telephone interview with Payplan. Wow, these are definitley the people you need to speak to. Extremley friendly and knowledgable.

As I am insolvent they suggested the 3 alternatives, Bankruptcy, a DMP and an IVA.

Bankruptcy does sound like the best option. Although, as informed, it does have its drawbacks.

They hinted a DMP would last over 11 years!

Big thanks to the members who responded to this thread.....
I'm off to the court (well, in the morning) to collect the relevant paperwork.

thanks

ffs

A DMP could last that long if your circumstances don't change, but if your earnings increase it could be cut significantly.

Old cars can be costly to run if you insist on paying someone else to do all the maintenance. But on the other hand main dealer servicing and maintenance on a new car could cost up to £90 per hour, and that's before you include manufacturer branded parts.

Isn't your mother going to be in a bind if you are no longer paying her rent?

Stuffed_2

!!!!!! wrote:

Old cars can be costly to run if you insist on paying someone else to do all the maintenance. But on the other hand main dealer servicing and maintenance on a new car could cost up to £90 per hour, and that's before you include manufacturer branded parts.?

What makes you think Main dealer servicing on an old car wouldn't cost the same or even more?

!!!!!! wrote:

Isn't your mother going to be in a bind if you are no longer paying her rent?

No, not at all. She's very much back on her feet now and makes a very good salary which will easily cover any expenses. I've informed her of my intentions and she's behind me 100%... That and the fact she thinks It's about time I left home.

shrimp76

I was in a similar situation to you, similar age, no assets etc. I owed a bit less, about 25k. I took out an IVA and had a positive experience, although it wasn't easy. Now it's finished I'm starting to be able to rebuild my credit file etc. I'm glad I did it that way over bankruptcy. If yuu need any info let me know.