|
|
 |
 |
FORUM |
|
> Browse and post on our forum |
|
|
|
 |
|
 |
|
Note: You must be registered in order to post a reply.
To register, click here. Registration is FREE!
|
| T O P I C R E V I E W |
| paul220 |
Posted - 02 January 2010 : 15:30:56
I am a mature student in my 2nd year of university. i Have debts of £18k. i have no assets or job. i have my army pension as my sole income which is £360pm. i have no way of paying my debtors. is bankruptcy the right option? |
| 9 L A T E S T R E P L I E S (Newest First) |
| Melanie.n |
Posted - 05 January 2010 : 08:17:29
Like anything it all depends on the exact personal circumstances and WHO you speak to, although not someone who is in favour of many DMPS's (they are not always the right solution!) sometimes they are the best solution if for example an IVA is not possible and a home may be at risk in bankrtupcy.
Never put DMP into a search engine! there are some dubious companies out there, the best advice is to speak to a professional go through your full circumstances and obtain the best advice available - if it means a DMP may be a solution, you should be advised of a DMP comany recommended by the advisor.
As for the CAB, there are some excellent people out there employed by them, but it does depend on who you speak to!
Melanie Nicholas
29 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jones Giles
email me at melanienicholas@jonesgiles.co.uk
|
| Richard P |
Posted - 04 January 2010 : 20:48:19
Hi Paul (and all)
you are right in saying that a DMP is a bit wishy washy but it is also a very good tool to use, it helped me buy some time, whilst i sorted myself out. I found that the banks were Ok for 6 months then wanted lots of income and expenditure updates
it is run by you in preference to the formality of an IPA.
in some peoples circumstances it is actually a very good option to consider, not certain it is appropriate from what you have typed here..
ssafa are very good , on occasions do offer good advice and rare occasions do offer contribution to court fees fro BR.
good luck and regards Richard
|
| gettingoutofdebt |
Posted - 03 January 2010 : 13:43:29
As ex-forces you may be able to get some assistance with the BR fee from SSAFA and the fee is £510 or £522 in London. If you do decide that BR is the right option then you should stop paying your creditors and use that money towards the BR fee.
I believe the IVA fee is taken from your payments by your IP (Insolvency Practitioner) i.e. you would pay a certain amount each month, your IP would take their cut and pass the rest on to the creditors.
When I first looked into a DMP, albeit very quickly, they appeared a bit wishy-washy. That isn't to say they aren't the right solution for some people but they don't seem as structured as BR or IVA.
If you do decide to look into an IVA or DMP have a look on iva.co.uk , which is the sister site to this one. There is lots of information regarding good IVA firms rather than the cowboys that you will find via Google. There is also nothing wrong with speaking to a few of them to see what they would recommend. I spoke to Melanie Giles and she and her staff were extremely helpful. After getting all of the information together and taking Melanie's advice I decided that BR was my best option but it may be different for you. The IVA firm's won't charge you for a quick chat and they will be able to advise you of your options. |
| paul220 |
Posted - 03 January 2010 : 12:15:35
i appreciate everyones time and effort in replying to my post. Its obvious there are many options open to me. Getting the right advice is essential and i will be paying a visit to a cab office tmrw in search of more advice.
Bankruptcy is an option but i see there is a fee of nearly £500 to realise this. Does this apply to iva's too?
As for a debt management plan i hear that they are helpful but it doesnt prevent the companies you are in debt to contacting you and threatening you with all sorts of things.
|
| gettingoutofdebt |
Posted - 03 January 2010 : 09:30:24
Hi Paul,
Good luck with the Uni course, I spent some time in the Forces myself and know how hard it can be to adjust to civvy street and get a decent job.
Are you getting a Student Loan? If you don't have any income other than the pension and possibly Student Loan then BR may be the best option.
You may be able to enter into a DMP (Debt Management Plan) and you would pay a small amount to your creditors until the debt is paid off. This would have to be agreed by the creditors but it really depends on how much, if any, DI (Disposable Income) you have each month. Once you graduate and get a higher income then the amount you pay would increase.
For an IVA (Involuntary Agreement) you would normally need £200 DI each month although some companies will accept £100 DI. The IVA would need to be agreed by the creditors and you would pay a certain amount each month for 5 yrs. Again when your income increases so would your payments.
If you declared BR your debts would be written off and you would only pay an IPA (Income Payment Order) if your DI was £100 or more. As you only have £360 from your pension, and maybe a Student Loan, it is highly unlikely that your DI would be greater than £100. You would be BR for 1 year and then discharged. This could mean that you would be discharged by the time you graduate and could have a fresh start when you leave University.
One thing to note is that Student Loans are not included in BRs, IVAs or DMPs so if you do have one you would still need to pay it off once you graduate.
I would agree with the others than the CCCS, CAB or National Debtline affer good advice but would echo John's views that you should post here after discussing your situation with them. As good as they are they don't always discuss every option with you and will base their decision on whether you should go for BR, IVA or DMP purely on your DI and not necessarily on your personal situation.
I was advised by the CCCS and National Debtline to go with a DMP but decided to declare BR and I have no regrets and know that it was the right decision for me. |
| Housing |
Posted - 02 January 2010 : 19:28:45
Hi again Paul,
I agree with John on the aspect to come back to this forum with any advice that you get to run it by this Forum.
I am not sure that I agree with the fact that CAB and CCCS get it wriong a lot... I have used both and so has my wife - she is not BR -I am. My wifes debts are under control by following a series of standard letters that are on the CCCS website.
They are a template and can be amended to your situation, but are a good starting point.
I would say that my wife avoided BR as it was not right for her and the advice and support she received was good - I also have worked with her to get the templates to fit her situation.
As to the CAB, I have to remove my emotion as I am a trainee volunteer for them - They have survived 70 years and have a successful, and tested formula - as to the hands on advice, I guess that is no different to using any adviser whether it be a lawyer, accountant debt counsellor or whoever, - the individual will vary and the chemistry will come through - although I have to say with the CAB, if the chemistry is not there or the advice is a bit suspect - you can see another adviser and believe me the supervision and support with the CAB is very strong and is taken very seriously - - so, they are tried and tested - I am not doing a one man support band for them by the way!
Whatever you do Paul, you may want to make up your own mind on a course of action and good luck to you and I hope you are successful in getting to a debt free and stress free life as soon as is possible.
And finally...come back to this forum and debate it some more - there are losts of posters who give a lot of time to try to assist one another - it works! Richard
"Life is generally something that happens elsewhere" (Alan Bennett - author and hero for me!) |
| John |
Posted - 02 January 2010 : 17:56:16
Hi Paul220
If I were you I would take the advice already given and check out the CCCS and CAB.
BUT!!!! Come back on here and let the forum know what they have advised you to do.
They get it wrong... as we all do.... but far too often in their case in my experience.
John White
Independent Debt Consultant
Specialising in Bankruptcy |
| Housing |
Posted - 02 January 2010 : 16:39:22
Paul,
I agree with debtinfo.
I can vouch for the CAB, CCCS and the National Debtline - all are available and will give you a direction based upon your situation.
If you would prefer face to face advice then the CAB are available and will give you honest advice based upon what you tell them - they are friendly and non judgemental. I am sure there will be a local office near you.
Good luck with your decision for the way forward and good luck with your studies too
Richard
"There are no problems - only solutions..." |
| debtinfo |
Posted - 02 January 2010 : 15:42:33
Thats very difficult to say given the limited information, is your income likely to improve in the near future. Have you spoken to someone like the CCCS, CAB and National debtline. They all give free advice and will go through all your options. Just stick them into google |
|
|
| bankruptcyhelp.org.uk Forum |
© bankruptcyhelp |
 |
|
|
|
|
 |
|
|
|
|
|
