| T O P I C R E V I E W |
| leen.ow |
Posted - 10 January 2010 : 18:31:30
Hi All,
I have been running away from large debts (c.40k)for about 2 years, mainly as a result of a relationship break-up, house repo and all that joy. Now, after considering an IVA for a while, I have decided to take a leap of faith and go BR in april (april being because my new partner, who has no debts at all, and I are moving house in march...so I am waiting to see what our expenses will be after that so I am better prepared to give an accurate I&E to the OR).
I have read alot on here including the very useful blog of skippy13 which I found most informative, and further inspiration that I am doing the right thing. I have also talked about it with my new fiancee who supports what I am doing so we can have a brighter future.
Still, I have one or two queries to satisfy, and I hope you can help.
1) As i earn a decent enough wage (25k) I know I will almost certainly have an IPA. I earn about 70% of the household income, so am I right in thinking my allowances will be 70% of the recommended allowance for 2 people?
2) I need a car as I work sometimes outside of public transport hours, and travel during the job to see customers etc. I have a 56 reg vectra on HP which is probably worth about 3-4k. I understand a vehicle over 2k is excessive and often the OR sells it and lets you get a cheaper car...which would be fine....however as the car is owned by the HP company (british credit trust) I am certain they would just repo it anyway. So how could I go about getting a cheaper car before or at the point of BR? I don't want to end up with no car!!
3) I have a basic bank account with natwest with a solo card and no overdraft, would I be allowed to keep this due to it's basic-ness?
Thank you for your time, and well done Skippy13, your blog is to thank for me only having these 3 questions to ask!
Lee |
| 15 L A T E S T R E P L I E S (Newest First) |
| leen.ow |
Posted - 16 January 2010 : 18:45:05
Indeed. The quip about my ex was mainly for humour and is certainly not my primary motive for going BR, and certainly not something I would say at court or to the OR. Like I said, it's all about drawing a line under the past and starting afresh, and an IPA for 3 years seems much more appealing than an IVA for 5 years probably with a higher monthly payment too. I think an IVA is great if you have assets to protect, but I have nothing, so it just seems the best option, certainly from what I have read of others on here.
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| RHB |
Posted - 16 January 2010 : 18:29:37
You will have an IPA for 3 years remember & the OR has wide ranging powers to look into your affairs. Becoming bankrupt to spite an ex spouse will not necessarily be looked upon favourably either. |
| leen.ow |
Posted - 16 January 2010 : 17:38:04
Skippy, I haven't taken any professional advice, just done a lot of research on this and the IVA forum as well as official websites. I want to go BR so I can have that debt free feeling as soon as possible. I don't want to pay £400 a month for 5 years, that's only 24k anyway, and I don't want the constant scrutiny of an IP for 5 years. Another reason is that almost half my debts are joint and I begrudge paying it all back when she isn't paying a penny (besides, knowing that she will become solely liable when I go BR kinda makes me smile!). So yes I have looked into other options, but I have no assets to lose and I just want a fresh start :)
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| Richard P |
Posted - 16 January 2010 : 17:25:29
Hi leen
agree with last two comments
speak to all of the experts to the left, however i would encourage phone call to paul @ reviva, he may have a package and option that may allow you to avoid BR, gotta be worth a call
regards Richard |
| RHB |
Posted - 16 January 2010 : 17:19:19
I was thinking the same thing Skippy, much better if he could avoid going BR |
| Skippy |
Posted - 16 January 2010 : 15:15:24
Lee, thank you for your kind words about my blog - I missed them when I first read your posts!
One question - have you taken professional advice? The reason I'm asking is that looking at you DI you may be able to do a DMP and pay back your debt in less than 5 years, which would save you having BR on your credit history.
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/
30 IPA payments made, 6 to go - the end is in sight! |
| debtinfo |
Posted - 16 January 2010 : 14:52:44
I think that it would be much more in the OR's interest to give you a few months before starting the IPA. With £671 DI (not including the car payment) you could could save in first 4 months and buy a car and then the OR gets a bigger IPA for 36 months |
| RHB |
Posted - 16 January 2010 : 14:31:24
I suppose if you need such a car for work & in order to pay a more sizeable IPA you may find an OR might exempt it but you wouldn't know before you went BR. |
| leen.ow |
Posted - 16 January 2010 : 13:24:05
Yes, after all is taken off, including the car payment, I would have about £400 DI
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| RHB |
Posted - 16 January 2010 : 13:18:21
271 pounds is quite a substancial sum to allow, would you still have disposable income left after that payment & your bills etc to fund an IPA? |
| Housing |
Posted - 16 January 2010 : 12:39:34
Just re-read the thread - the OR is not allowed to give you advice I am afraid. He is an officer of the court and, as such, has the interests of the creditors at heart. Richard
"Life is generally something that happens elsewhere" (Alan Bennett - author and hero of mine!!) |
| debtinfo |
Posted - 16 January 2010 : 11:52:23
The OR will not tell you what would happen before a bankruptcy, they are not allowed to give advice, and certainly not advice that might affect your decision as to wether to go bankrupt or not |
| Housing |
Posted - 16 January 2010 : 11:07:38
Hi
Sorry I did not want to scare you - was simply pointing out how some ORs can view things in a worst case scenario.
I wish you good luck and I am sure things will be OK. Richard
"Life is generally something that happens elsewhere" (Alan Bennett - author and hero of mine!!) |
| leen.ow |
Posted - 16 January 2010 : 11:03:20
Indefinite suspension? BRUs? Scary times! I certainly don't intend to be dishonest (I have seen a photo of my local OR and he looks like the demon headmaster) I just want fair expenses to be allowed. Like I keep saying, my only real concern is whether he will allow my £271 HP payment as something I can deduct from my I&E, it would be useful to know this before I go BR so if not I can sort out an old banger. Would I be able to email the OR direct and pick his brains? Or is it a case of just go BR and see what happens?
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| debtinfo |
Posted - 16 January 2010 : 10:55:39
I can tell you from personal experience that if someones income exactly matches their outgoings or the their outgoings exactly match the recomended guidelines, that the examiner will look just that little bit closer at the figures |
