| Author |
 Topic  |
|
sueann
Junior Member
United Kingdom
300 Posts |
 Posted - 09 June 2008 : 11:36:07
|
I posted this on the IVA forum but just found this great forum.
I have over the past month or so been going through the IVA motions, this morning I received from my IP my proposal to sign for my meeting sometime in the next few weeks, looking at the figures I am wondering if BR would be the best option to take. I live alone in Housing Association I have no assestts but a car with a value of £690 and debts of £26,000. I am not sure where to go for advice I need to make a quick decision as I keep getting letters and my telephone practically rings off the hook. I have been for the past 4 years on a payment plan I have not paid the last 2 payments as advised only the costs to Thomas Charles. If I send off my signed proposal would it be too late to change my mind? Also I have a Co-op Cashminder basic bank account will I be able to keep this if I go BR. I thought an IVA would be the answer to my prayers but I am finding it worrying on my mind if I can maintain it for 5 years they are really leaving me to struggle with nothing for emergencies. Also do I have to pay fees for BR?
I am so unsure and miserable, should I get someone to look over the final proposal and advise me? I am swaying towards BR. |
|
|
JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 09 June 2008 : 11:38:58
|
Hi Sueann and welcome to the forum.
First of all, don't panic. There is a solution and it will soon be over!
Firstly, is your property a joint ownership with the housing association, or is it a straightforward rental? Also, after paying all your bills (but before you pay any of your unsecured debts), what is left over each month?
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
 |
|
|
sueann
Junior Member
United Kingdom
300 Posts |
Posted - 09 June 2008 : 11:58:47
|
Hi Julian thank you for your welcome I am trying so hard not to panic honest, I am just reading through the proposal.
My HA is purely rental, my IVA payments have been set at £312.00pm with a dividend of 37p/£ on IVA and estimated 12p/£ for BR (what ever that means).
Left after paying my bills is £906.55 before paying creditors.
Thank you.
Sue |
|
|
|
sueann
Junior Member
United Kingdom
300 Posts |
Posted - 09 June 2008 : 12:04:49
|
| They are purely rent/bills in the figure above, I have not included petrol, food etc my other expenses worked out about £560.00 which is on my IVA proposal. |
|
|
|
JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 09 June 2008 : 12:11:58
|
Hi Sueann,
The thing you'll have to be careful of here is that it you declare a disoisable income of over £100 a month on your SOA, the OR can take 50-70% every month for the next three years on an IPA/IPO. However, it is worth remembering that the expenditure allowances in BR are far more reasonable and realistic than in an IVA.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
|
|
|
sueann
Junior Member
United Kingdom
300 Posts |
Posted - 09 June 2008 : 12:22:09
|
| Thank you for that now I am well confused of what to do and where I'd be better off in an IVA or BR, is there anywhere where I can get a comparison of a BR against the proposal figures on my IVA. The IVA allowances are terrible. |
|
|
|
JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 09 June 2008 : 12:26:42
|
Hi Sueann,
Unfortunately, there are no comparisons like this available. Given what you've stated ablve, BR is going to be a far better solution for you. I would suggest you sre honest about your expenditure as if you tell the OR you can eat for £10 a month, that's what they'll expect you to do.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
|
|
|
sueann
Junior Member
United Kingdom
300 Posts |
Posted - 09 June 2008 : 13:00:38
|
I quite agree that BR is gonna be a better option so I think Ill start moving forward on this, I cant afford the fee until end July so I just need to keep the wolves at bay until then somehow as it has already been 2 months since my last payment on my payment plan with the IVA going through.
Thank you for your help, if anyone has any other advice on getting started it would be much appreciated and Ill browse through the forum. Just two questions do I need to inform my creditors what I am doing? will my employed be informed (not that they would care)?
Thanks for your input today is now gonna be set aside for BR research. |
|
|
|
JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 09 June 2008 : 13:17:35
|
Hi Sueann,
Your creditors are likely to hound you on the phone/letters etc either way. I would suggest keeping ti to yourself for now!
During the financial year you are an undischarged bankrupt, you pay no tax. The OR will write to your employer to put you on a NT tax code, so they will find out.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
|
|
|
eamonn
Junior Member
320 Posts |
Posted - 09 June 2008 : 13:21:53
|
| i have informed my creditors that i am about to go bankrupet and so far they have all left me alone since, i know this has not been the same for everyone but what do you have to lose they will either leave you alone or they will continue to harass you,as they are now. |
|
|
|
sueann
Junior Member
United Kingdom
300 Posts |
Posted - 09 June 2008 : 13:24:20
|
| The employer is not a problem, NO TAX I didn't know that does this become disposable income? I am just printing the forms off now and starting to feel better already, scared but better. Gosh this form is long still printing. |
|
|
|
Dee
Junior Member
United Kingdom
215 Posts |
Posted - 09 June 2008 : 13:38:59
|
Hi Sueann
I recently went BR after seriously considering IVA. The one thing I would suggest you do is call your local court. We got the money together then called only to discover that there was a waiting list of a few weeks.We were then in a race with NR who were after a charging order against our home. Not all courts operate an appointment system but best to check.
Good Luck
Dee |
|
|
|
JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 09 June 2008 : 13:47:46
|
Hi Sueann,
The OR will consider the tax you are not paying as disposable income. I had a case recently where my client was asked for an IPA for only 12 months, and that was only for the tax he was not paying.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
|
|
|
sueann
Junior Member
United Kingdom
300 Posts |
Posted - 09 June 2008 : 13:48:57
|
quote:
Originally posted by Dee
Hi Sueann
I recently went BR after seriously considering IVA. The one thing I would suggest you do is call your local court. We got the money together then called only to discover that there was a waiting list of a few weeks.We were then in a race with NR who were after a charging order against our home. Not all courts operate an appointment system but best to check.
Good Luck
Dee
Thanks Dee I am in the process of trying to find out what court and I will make an appointment as you suggested, I can't afford to go BR until end July so I'll make the appointment soon. Did you do your BR yourself? I am alone in this yikes! |
|
|
|
m and v
Average Member
United Kingdom
760 Posts |
Posted - 09 June 2008 : 13:53:12
|
Hi Sueann - the tax you don't pay is handed over to the OR each month. So although you get extra in your pay - the OR takes it from you I'm afraid.
I have fairly recently gone BR after a failed IVA so please ask any questions you have and you'll get lots of support from the forum.
The form is a bit long winded but you'll find a lot of it relates to having a business and a mortgage and you can whip through some of the pages.
Have answered your other post about expenses.
Hope it helps
Vicki x |
|
|
|
sueann
Junior Member
United Kingdom
300 Posts |
Posted - 09 June 2008 : 14:48:43
|
| For the past 4 years I have been paying creditors through a payment scheme with payplan with no sight in end, will this effect the outcome in anyway? should I put this on the forms? |
|
|
|
Topic |
|
Now thinking BR - help i'm scared
