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| T O P I C R E V I E W |
| DJ83 |
Posted - 23 October 2009 : 13:09:59
I am considering bankruptcy and have applied for the papers. The only asset that I have is a car as my partner and I rent a property. If my application is approved, what actions will be taken? I have been told my bank accoutns will be frozen and closed down as the overdrafts are maxed out. How will I get my wages paid to me? Is it standard for people to open up bank accounts in other people's names so that they can still be paid? I have been advised to stop my creditors direct debt payments (Loans/Credit cards etc) as I will be going bankrupt anyway. Again, is this standard or should I wait until my bankruptcy application has been approved? How long does the whole process take, and are the repayments high? Equally, how long do the repayments last and is it all worth it? Sorry for all of the questions. I am 34k in debt (£24k is loans/overdrafts/credit cards, and £10k is a student loan). Currently I have about £60 a month left to spend after all of my direct debits come out, although these payments include Sky TV, a mobile phone and a season ticket to a football club. I assume they will make me give up going to football and having Sky TV? |
| 15 L A T E S T R E P L I E S (Newest First) |
| Niobe |
Posted - 25 October 2009 : 17:55:19
I agree with Skippy - if you can manage to make your payments and your DI is going to be going up then I would continue as you are.
The glimmer gets brighter all the time
Jan
xx |
| Skippy |
Posted - 25 October 2009 : 17:12:08
DJ83, you really need to take professional advice about your situation. Have a look on www.iva.com for details and reviews of insolvency practioners who will be able to give you advice about your options.
You have disposable income, and if you can use this to repay your debts without going BR then maybe you should think about it. Write down all of your essential outgoings and look at where you can cut back - you may be surprised at what you can do.
BR isn't an easy way out and shouldn't be viewed as such.
And just to clarify, both BR and an IVA stay on your credit file for 6 years from the date of the BR order or creditors' meeting, not 7 and 11 years.
Tomorrow is a mystery, yesterday is history, today is the present, a gift to make the most of.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/
27 IPA payments made, 9 to go - in single figures! |
| chester2005 |
Posted - 25 October 2009 : 15:57:00
just because you have disposable income does NOT bar you from bankruptcy!!!!!!!!!!!!
there are many people who have 70% IPAs from their disposable income
BR and IVAs are a legal way of having debts written off either in 12 months BR or up to 5 years IVA
as for the credit card co marking your crdit file for 6 years, BR or IVA stays on your credit file for 6 years after so total 7 yrs (BR) or 11 yrs (IVA)
i would strongly suggest you speak free and confidentially to someone like Paul Johns at www.revivauk.com
or Melanie at www.jonesgiles.co.uk they both offer free impartial advice and are experts in their field
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurman)
RevivaUK helped me through it all i can't recommend them enough!! |
| Niobe |
Posted - 25 October 2009 : 14:47:26
With a DMP you pay back the whole of the amount that you owe, regardless of how long it takes and there is no guarantee that interest and charges will be frozen.
That will only happen if you do an IVA.
DJ83 - anything bad will be on your credit record anyway, and as long as you are paying less to your creditors, then the six years is flexible. It is only set in stone if you do an IVA or go BR.
The glimmer gets brighter all the time
Jan
xx |
| RHB |
Posted - 25 October 2009 : 13:53:29
I think it has to be a good move because you don't want to get more crdit if you are struggling to repay what you have already borrowed do you?
It might be worth contacting CCS & tey might sort a debt management plan out for you, so the interest is frozen & you pay back a certain amount over a number of years. |
| DJ83 |
Posted - 25 October 2009 : 13:21:50
Kallis, There are 2 parts to the season ticket; £110 for the home season ticket and £90 for the away season ticket. The home season ticket payments end next month, the away S/T continues til March @ £90. Was contacting my credit card company a good move? It stays on my credit record for 6 years apparently. I don't see how the bank could help, they didn't seem very accomodating on the phone :-( |
| Richard P |
Posted - 25 October 2009 : 13:18:14
Hi DJ
Well done for raising your head to look at your own financial situation, perhaps some of the answers are not what you wanted to hear but the benefit of this site is that people will give it you as straight as they can and from (sometime bitter) personal experiences.
When I got in too deep and realized my finances were out of control my head was totally fuzzy and I needed direction with simple steps, so without wanting to appear condescending here are some suggestions
Get organized with your personal income and expenditure sheet, identify all of your outgoings, including the social events. Every penny should be accountable.
You have already identified 260 that can be used to attack the debts but what other luxuries or commitments can be suspended UFN. How can you make other savings
Once you have an I & E and suggested savings go and speak to your bank, will they help? Try to call and speak to your creditors before they pass on debt to third party. I am uncertain if paypal or similar will be able to help you but worth a call.
The local CAB may also be a good point of contact
From what I have read in this thread you appear to be a long way from BR, it is not the easy option but you are right to review your personal finances and help yourself out of the hole that you find yourself in, please do not be tempted to go WTF and go on mad spending spree.
Good luck with the difficult road ahead
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| Niobe |
Posted - 25 October 2009 : 12:43:01
If your season ticket payments stop this month, I am a little confused as to how you are only £110 per month better off when the payments are £200 a month and you have £60 left over anyway.
I still say that you are not insolvent as you have disposable income. I suggest that you need to speak to a professional about your circumstances.
Visit www.iva.com for a list of companies and reviews. Give one or two a ring and you will receive free and impartial advice as to all the options open to you and the best way forward for your circumstances.
The glimmer gets brighter all the time
Jan
xx |
| debtinfo |
Posted - 25 October 2009 : 10:56:32
Think about it like this if you cut out all but essential expenditure and cut up all creditcards now. would you be able to live and pay all the contractualy required debt repayments, if you cannot then you are insolvent and can apply for bankruptcy |
| DJ83 |
Posted - 25 October 2009 : 10:26:00
I do meet all of my payments. I pay the minimum off of my credit card and then use it immediately to buy petrol for the month, so the credit card debt is never reduced. Based on the posts, there have been mixed replies, but it appears that I can't be classed as insolvent, therefore can not claim bankruptcy. Is this correct? I contacted one of my creidt card companies and they have put me on a 6-month repayment plan where they reduce my repayments by 50% and freeze the interest for 6 months. After 6 months, we'll re-assess. It does go on my record for 6 years and my credit card can not be used. Was this a good move to make? I wanted to do the same with my bank regarding the overdraft fees and my loans, but they both said that they couldn't offer anything like that unless I contacted governed debt companies. One advised the CSSS? Again, is it worth me contacting groups like that, or shall I see how I get on with this repayment plan? My home season ticket repayments end next month which means I will immediately be £110 a month better off :-) |
| debtinfo |
Posted - 24 October 2009 : 22:21:52
as far as bankruptcy is concerned the measure for insolvency is "that you can not pay your debts as they fall due" to extend that definition it means that you cannot pay the minimum payments contractualy required out of your income after all essential household expenses have been paid. so for instance if you need to use credit in order to make the payments you are insolvent even though the payments are getting paid. Taking an extreme example if you had a property portfolio worth £10,000,000 and debts of £100,000. You had anincome of £1,000 pm and debt repayments of £2,000pm then you could go bankrupt as you do not have the cash to hand to pay the debt as it falls due. |
| chester2005 |
Posted - 24 October 2009 : 21:51:43
as far as i am aware, you are insolvent if you owe more than you own, so in theory you are insolvent, and if you wished you could use the laws of insolvency and bankruptcy to your advantage and declare BR and wipe the slate clean as regards your debts.
the reality is though that your diposable income would be potentially £260 and you would have to pay 50-70 % of this for 36 months into an IPA towards your debts.
your choice, and maybe you would benefit from a free chat with an expert like RevivaUK (BR)or jones giles(IVA)
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurman)
RevivaUK helped me through it all i can't recommend them enough!! |
| Housing |
Posted - 24 October 2009 : 11:10:13
Hi,
I have to agree with gettingoutofdebt, kallis and skippy.
The luxury of a season ticket is a no no - I love rugby and I would love to go to see my team and my national team (Wales) at every opportunity - simply fact is - I cannot afford it!
Not wanting to be a martyr, we have cancelled Sky (£23) as we cannot afford it - our granchildren are a bit sad when they come to watch "Spongebob" - but it is not there now!!!
If you are going to enter BR, then you must be honest with all concerned - especially the OR!
I am not trying to lecture - not my style or even my business - simply based on experience - whatever you do, I wish you well, but think first. Richard
"There are no problems - only solutions..." |
| Skippy |
Posted - 24 October 2009 : 10:30:50
Well said gettingoutofdebt.
DJ83, you only have a minimal amount left each month because you choose to do so. You could easily have an extra £200 a month, and if I remember your post on the IVA forum correctly there are other cutbacks that you could make as well. You would be expected to make those cutbacks if you were BR anyway, so do it without the stress of BR.
We all have to make cutbacks that we don't want to, it's called living in the real world. You borrowed the money presumably with the intent of paying it back, and as you have the means to do so, you're not insolvent.
Tomorrow is a mystery, yesterday is history, today is the present, a gift to make the most of.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/
27 IPA payments made, 9 to go - in single figures! |
| Niobe |
Posted - 24 October 2009 : 10:02:22
Well said gettingoutofdebt. I couldn't agree more.
DJ83 seems to be wanting to have his cake and eat it.
With any debt solution then there has to be tough budgeting and luxuries such as a season ticket are out of the window.
I think you are going to have to accept the fact that bankruptcy probably isn't for you, and you should carry on paying your creditors as you have been. Give up the season ticket and you should manage quite well.
The glimmer gets brighter all the time
Jan
xx |
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