Help IVA failed is bankruptcy the only option

Annalise1234 · 29 September 2017 at 3:49PM

Hi

I have due to failed relationships and being a single mum got myself in to debt of nearly £50,000, I have been dealing with Step Change since February and have tried to set up an IVA - but IKANO and Barclays refused my offer (advised by step change) and wanted another £200 per month as to what we were offering and could afford and to extend the term to 7 years. Step change have advised I go bankrupt as I have no assets , at the moment I am paying each creditor £1 per month and have £80 to pay before going bankrupt. A colleague at work advised there must be other options and to post here for advice - I just don;t know what to do and what other options I have if even Step Change couldnt help. Any advice appreciated

sourcrates · 29 September 2017 at 5:00PM

Hi,

The only options are those provided by parliament, which on a 50k debt, and in your circumstances are :

Bankruptcy.

You most likely do not have enough disposable income for an IVA.

A debt management plan is ruled out for the same reasons.

A debt relief order only covers debts up to 20k.

So realistically Bankruptcy is your only option yes.

National_Debtline · 29 September 2017 at 5:23PM

Hi Annalise

It's hard to argue with sourcrates' assessment based on what you have told us.

Bankruptcy is there precisely so that you have an opportunity to start over when there is no other realistic way of satisfying your debts.

Please note that the cost of applying is £680 - perhaps your reference to £80 was a typo. You ought to consider stopping any further payments to creditors altogether now, even those of £1, in order to be able to save that figure up.

I'm sure Stepchange have provided you with information on the bankruptcy process and its effects already, but just in case here is our guide:

https://www.nationaldebtline.org/EW/factsheets/Pages/bankruptcy/how-to-go-bankrupt.aspx

Dennis
@natdebtline

Money_maker · 30 September 2017 at 12:03AM

#4 is spam, you want to go to a debt charity such as stepchange or national debtline, not some fee charging company looking to leech off the desperate.

Do not come on MSE self-promoting your website, reported and you will soon be gone.

Annalise1234 · 30 September 2017 at 9:25AM

Thank you for your help, I guessed as much that I would have to go bankrupt but wanted to see if there was another way out. Yes I meant I have another £80 to pay before going bankrupt, how long will II have before my creditors take action, I have debt collection agencies writing to me and calling me I want t o try and file for bankruptcy before they take me to court. Again thank you for all your help.

ToxtethO'Grady · 1 October 2017 at 6:45PM

Hi Annalise

If you are going bankrupt it does not matter if they take you to court as any CCJs would be included in the BR. You can ask the DCAs (debt collections agencies) to remove your number and only contact you by letter or email.
As they are all unsecured debts and you have no assets having a CCJ would not complicate the BR. Your credit file will show the BR from the date it is done for up to 6 years. All debts should show as satisfied from that date and there's a good thread on here about cleaning up your credit history post BR.
From what you have said your BR should be straight forward so I don't think you'd be receiving a CCJ claim form any time soon. A CCJ is a paper exercise and even if they do take you offer £1 a month until you can do the BR.

Hope this helps.

Annalise1234 · 9 October 2017 at 4:19PM

Hi All, I have contacted a different debt management company who have advised they think an I V A is possible and a meeting of the creditors booked for 20th October fingers crossed

Carrot007 · 9 October 2017 at 4:21PM

Annalise1234 wrote: »

Hi All, I have contacted a different debt management company who have advised they think an I V A is possible and a meeting of the creditors booked for 20th October fingers crossed

Hopfully not one that charges, as they wil ltell you anything to get some money from you.

Annalise1234 · 9 October 2017 at 4:30PM

Hi Carrot - no fee to me - I just hope it is accepted as I don't want to go bankrupt unless there is no other option, they did advise if I went bankrupt the OR are quite harsh with any extra cash I have and would take most of it from me

ToxtethO'Grady · 9 October 2017 at 5:54PM

Hi Annalise

Without knowing your debt situation fully I think if Barclays/Ikano refused the first time they must be your majority creditors. 75% in monetary terms of your creditors have to agree and no IP can get them to agree if they don't want to. Have you changed your budget with the other company?

There are always fees with an IVA, it's usually included in your first few payments or as a percentage of the monthly amount. Your proposal should outline what the fees are, have this other company put in writing that there are no fees if the creditors meeting doesn't go your way?

Annalise1234 · 10 October 2017 at 11:34AM

Hi HSBC is the majority creditor, then Ikano , Barclays fair quite low in the debt, to be fair Step Change didn't take anything from me other than income and expenditure, no ID bank details where as my current company have done a thorough search on everything, my budget has changed since dealing with Stepchange. My current advisors have said that Step change are funded by the creditors which doesn't obviously help with the I V A being arranged. I only spoke with a basic advisor at Stepchange where as I have actually spoken with an OR regarding my situation. No charge to me if it fails.

Help IVA failed is bankruptcy the only option

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