IVA/Bankruptcy Help

Krusnik02

Hi i am a newbie,

Found your site while trying to look for help with my mess. I am contemplating IVA or Bankruptcy as over the last few years i have managed to acquire approx 38k of unsecured debt and in the last couple of months my outgoings have been exceeded my incomings.

I will be honest and this is mainly due to my own folly (living beyond my salary and also to a large extent gambling). I have no assets and currently am living with my parents.

I have spoken to an IVA specialist and they have informed me that my only two options are an maybe an IVA or Bankruptcy.

My income and outgoings are as follows;

Income: 1800

Debt Outgoings (loans, credit cards, storecards, charges): 1142

Travel to Work: 311 Rent to parents: 400 Work food: 200 Mobile Phone: 60

Deficit: -313
This situation is quickly going to spiral out of control unless i do something now but i am scared of scraping the money together for the petition for bankruptcy with a BRU only to be rejected and pushed towards and IVA.

Has anyone got any advice or had any experience that would put my mind at ease about petitioning for Bankruptcy, this situation seems to have come about so fast...

Many Thanks,

K

10past6

Hi

Welcome to the forum.

Krusnik02 wrote: »

I have spoken to an IVA specialist and they have informed me that my only two options are an maybe an IVA or Bankruptcy.

The first and most important aspect I want to say to you, as you have no assets to protect, an IVA IS NOT FOR YOU, one main reason for entering into an IVA is to protect ones assets like home.

I'll bet the "Specialist" who informed you was a fee paying company.

Many, many people are miss sold IVA's, this forum alone has numerous threads about them.

Click here, and take advice from any one of the debt charities listed.

One more very important point, you have NO reason to use a fee paying company, they cannot offer you any more than the debt charities.

GeorgeUK

Totally agree with the above post. The "specialists" forgot to mention the possibility of a debt management plan. It may be possible for your creditors to freeze the interest and allow you to make repayments that you can afford. We'll be able to provide more details later, but those free charities mentioned wil be able to help with proper specialist advice.

CCCS have an online form you can fill in to see what might be best for your situation if you are still unsure.

If you post up a SOAwe may be able to advise on areas to make savings.
http://www.makesenseofcards.com/soacalc.html

Krusnik02

Thanks for your replies.

Here is a approx SOA

Any feedback would be much appreciated:

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1750
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1750

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 400
Management charge (leasehold flat)...... 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 65
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 10
Groceries etc. ......................... 50
Clothing................................ 50
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 311
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 10
Entertainment........................... 150
Holiday................................. 30
Emergency fund.......................... 0
Total monthly expenses.................. 1096

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured Debt

Unsecured Debts
Description....................Debt......Monthly...APR
Loan...........................7000......227.......16.9
Loan...........................6000......254.......19.9
Credit Card....................3000......88........19.9
Debt Collection Agenc..........6000......150.......3
Overdraft......................1600......80........16.9
Overdraft......................8000......100.......16.9
Store Account..................600.......16........30.9
Store account..................600.......65........30.9
Credit Card....................1500......66........19.9
Total unsecured debts..........34300.....1046......-

Monthly Budget Summary
Total monthly income.................... 1,750
Expenses (including secured debts)....... 1,096
Available for debt repayments........... 654
Monthly UNsecured debt repayments....... 1,046
Surplus(deficit if negative)............ -392

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total Secured debt...................... -0
Total Unsecured debt.................... -34,300
Personal net worth...................... -34,300

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.


Thanks again

GeorgeUK

As you are living with your parents, there's not much there, but you can still cut back a bit.

Mobile phone............................ 65
Can you switch to pay as you go or get a cheaper contract?

Clothing................................ 50
50 per month on clothing is a bit much - you can cut this down a bit.

Other travel............................ 311
Blimey!! Is this a train ticket or something? That's quite alot for travel. Are you taking advantage of any discounts available?

Entertainment........................... 150
You might think it's only £40 a week, but this needs trimmed down too until the debts are in better shape.

Have you missed payments or had defaults on any of the debts? If your credit history is in reasonable shape, you may be able to get another CC with a 0% offer. This would allow you to throw more money at the higher APR debts and help reduce the minimum payments required.

Krusnik02

Thanks George, i am thinking that i am too far gone to actually be able to get out of this unassisted my credit rating is poor/fair and can't get anymore credit.

Will be talking to the CAB & CCCS to see what they think my options are...

Cheers buddy!

bogged_down_with_£

Hello, You have similar debt to me but circumstances are a bit different. I went to the CAB and as I had already done a SOA and had background info on DMP's/IVA's and Bankrupcy they said they couldn't help. Best to go straight to CCCS or National debtline. They will give you all the info you need. Good luck xx