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ineedhelp
Starting Member
United Kingdom
7 Posts |
 Posted - 18 March 2011 : 20:26:07
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Hi,
I'm really getting stressed with my debts and hope somebody could offer a glimmer of light. I've worked out a basic SOA which shows that I need to pay out around £1600 a month which includes house hold bills and my debts. The debts are £302 a month AA loan, £213 a month Car HP and £60 a month Credit card. The Car HP has 16 payments to go, AA has 60, Credit Card has a debt of £2700 on it with interest rate of 6%. My salary varies some months, sometimes I take home after tax 1800.00, sometimes just 1000.00, more often it is the former - reason for this is I'm a supply lecturer. I'm just worried when August comes and it is the 6 weeks holidays and I have no pay. If I could get rid of the car, that would help, but I owe more on it than it is worth!
I would really appreciate any advice.
Kind regards,
Pete |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 20 March 2011 : 15:22:36
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Hi Pete
on your figures presented £600 per month would disappear because you do not continue paying the creditors when you declare BR but any spare cash may form part of an income payment award.
with your variable salary,I doubt you would qualify for an IVA, you may qualify for a debt management plan but how are you going to clear the principle debt. Bankruptcy may be the correct option for you.
contact one of the experts directly they will give further specific advice relevant to your circumstances.
Richard |
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ineedhelp
Starting Member
United Kingdom
7 Posts |
Posted - 21 March 2011 : 09:44:20
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Hi,
What I'm going to try and do is make another 5 payments on the car and then hand it back as I would have paid half the amount owing on it and on the finance agreement it says I can hand it back if you have paid half, this would save 213.00 a month. Of course, I'll have no car and would look at picking up a cheap run about. Would this be sensible?
Thanks,
Steve |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 21 March 2011 : 10:52:58
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why ? if the car is worth more than 2K you prob wont be able to keep in BR.
I do not believe that going BR is about turning up at court it is about planning and timings, yes i can see that you are trying to plan replacement car but pls get one of the experts to give you some direction it could help the whole process run smoother.
Richard |
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ineedhelp
Starting Member
United Kingdom
7 Posts |
Posted - 21 March 2011 : 13:35:54
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Hi Richard,
I can hand the car park without defaulting if I make 5 more payments (you can hand it back when you have paid half) thus I will not have the £213.00 a month to pay back after that time and it will help me to avoid bankruptcy.
Regards,
Steve |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 21 March 2011 : 13:52:30
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Steve
This is hard speaking in cyber space and giving generic advice.
if you continue to pay the £213 do you have enough money each month left over to survive ?
you could end up paying the car loan people £1000+ and it still not have the desired result of dealing with your debts or getting you in a better financial position.
you may be able to hand the car back but will they chase you for the short fall ?
the reason i asked why ? was you do not want to throw away good money if it does not actually improove your situation
A DMP may be a good alternative to bankruptcy. depends on you and your circumstances
Richard |
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ineedhelp
Starting Member
United Kingdom
7 Posts |
Posted - 21 March 2011 : 16:39:00
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Hi,
They won't chase me for the short fall as it states on my agreement with them that you can hand the car back once you have paid at least a certain amount and providing the car is in good condition. I can pay the 213 a month and just scrape by for the next 5 months.
My survival in avoiding BR is whether my contract gets renewed in August for the term start of September, if it doesn't, I'm screwed as won't have monies to pay the AA loan.
Many thanks,
Steve |
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hindle66
Starting Member
United Kingdom
4 Posts |
Posted - 24 March 2011 : 20:59:26
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| I suggest as Richard said you seek some expert advice. You are correct regarding the car I did a similar thing, However on returning the car to the HP company they will check to ensure it is in tip top condition (this is including decent tyres etc) so expect that you may need to pay additional.I can only apply some of my own circumstances to your position and it appears you are just begining the process of facing your financial problems (your car is only one part of your financial issues). Please seek professional advice and structure a plan to be ahead of the game look at all your options including BR... be clinical and not emotional....its hard... but it helps you have some way to go but you will get there. |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 25 March 2011 : 08:02:10
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Nothing to do with the original question, but just wondering why the OP's name has suddenly changed from Pete to Steve?
Double, double toil and trouble;
Fire burn, and cauldron bubble.
Jan
xx |
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ineedhelp
Starting Member
United Kingdom
7 Posts |
Posted - 26 March 2011 : 18:19:15
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Sorry about that, have been using an alias name, just in case.
Found out yesterday I am now on a temp full-time contract, but this is 70% of normal wages but would get paid for when holidays are on. Having worked out my take home pay, I'd have no money left for food or petrol after paying my loan, credit card and HP - it is looking like bankruptcy is going to be the best option. How do you go about planning this, I get paid in 4 days and my debts come out of my bank account 1st of the month, should I go for bankruptcy mid/end of April?
Thanks again |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 26 March 2011 : 18:42:44
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Nobody can tell who you are ineedhelp - they're not able to access your details on here.
I can't help you with when you declare BR though.
Double, double toil and trouble;
Fire burn, and cauldron bubble.
Jan
xx |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 26 March 2011 : 19:38:45
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congratulations on the contract
i take it that up to now you have made all of your payments. you dont have to go BR the day you miss your first payment
i would say from what you have posted the car is a priority, get this sorted first.
timing of BR is the priority may be a good idea to contact one of the experts and crystalise your plan.
Good Luck Richard,
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ineedhelp
Starting Member
United Kingdom
7 Posts |
Posted - 27 March 2011 : 13:01:56
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Thanks,
Yes, car is priority, if I could get rid of it so I don't have the 213.00 a month payment, I would have some money left for food. I'm also hoping come September that I get moved up to full-time hours which would give me about another £400.00 a month.
As for the car being in tip top condition, the car is 8 years old, tyres are all great on it so far and I've not long ago paid out for new pads and discs. Only issue is dent on bonnet as some kids jumped on it one evening, I've got most of the dent out, but guess they will moan about this? It is also possible I could sell it to one of those car companies who offer you below price value and settle the existing finance?
Richard - not missed any payments on anything, ever.
Thanks
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 27 March 2011 : 17:30:58
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Hi Ineedhelp
each time we type we get a little more info, the options available to you change
Yes BR is still an option but have you considered a debt management plan and / or negotiated settlement.
Good Luck Richard,
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 28 March 2011 : 12:25:16
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I would take advice as to the best solution for you. Visit www.iva.com for a list of companies and reviews.
The advice is free and impartial and they will sort out a solution for you.
Double, double toil and trouble;
Fire burn, and cauldron bubble.
Jan
xx |
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ineedhelp
Starting Member
United Kingdom
7 Posts |
Posted - 31 March 2011 : 09:09:50
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Hi,
I've checked iva.com out and input'd details.
The extra income in September is not guaranteed obviously, it may not happen, so as of now until at least that time which is some 6 months away, I've not really got anything to live on after paying house hold bills and debts.
I'm living on hopes at the moment, the hope I can hand the car back, the hope my wage goes up in September and having nothing left. The cost of getting to work is crippling (£220 a month), and as for alternate transport, unfortunately that is not an option - would be two buses and two trains making my journey over two hours.
I seriously feel like I'm at the end of the road and BR is an option I am destined to do.
Kind regards,
Steve
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Topic |
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Should I declare BR?
