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Jessica.hg
Starting Member
1 Posts |
 Posted - 17 July 2012 : 17:40:16
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Hi,
I’m self-employed at the moment, and my income fluctuates. I’m just about to go on maternity leave for 6 months, and will be going back to an office job part time in mid-February. I live in a rented flat with my new husband, who earns about £20,000 per year.
I have nearly £40,000 worth of debt from 5 creditors (3 of which are Lloyds) from a failed business venture 6 years ago. I’m on a debt management plan at the moment, and I’m paying £200 per month towards my debts.
This isn’t even paying the interest, and I’m very keen for this situation to change, particularly having just got married and with a new baby on the way. I have offered a settlement figure to my creditors twice now, the last being £12,000. All my offers have been refused, and I have been told by my debt management company that at least £20,000 to £25,000 would be needed to settle. In my present situation this would be completely impossible, and I can’t see that changing in the future.
Our priority at the moment (apart from paying my debts off) is to buy our own house, which we hope to do in five years or so. I’d like to know whether it’s better for me to get this situation resolved ASAP and go bankrupt, or whether to stay as I am now? Is it better to get a mortgage as someone on a debt management plan who has built up better credit in the meantime, or as someone who has recently been bankrupt?
Thanks
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Viki.W
forum expert
United Kingdom
2211 Posts |
Posted - 17 July 2012 : 17:56:35
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Hi Jessica,
It sounds like your debt management company are only thinking of an informal lump sum payment, it may be that you need to speak to an insolvency practitioner and propose a lump sum IVA, which your creditors may accept if you are not going to have any ongoing disposable income.
Your credit rating will still be shot for 6 years, but you avoid bankruptcy.
I advise you speak to an expert on here to chat through your options.
Viki Warbrooke
Vincent Bond & Co
If you would like free advice on all options available and help with your bankruptcy petition please contact me at http://www.vincentbond.com/about_us_Viki_Warbrooke.asp |
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year 2029
Average Member
590 Posts |
Posted - 17 July 2012 : 20:27:21
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Hi Jessica,
Just to add to what Viki has said, its called a full and final settlement IVA.
Its worth going through an IP, and your local CAB would be able to give you initial advice and refer you to local companies.
Let us know how you get on.
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Views expressed are my own personal views, based on what has happened during my own BR process unless otherwise stated.
Professional advice should always be sought. |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 17 July 2012 : 22:45:23
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I'd also suggest visiting www.iva.com where there are a list of companies and reviews. You don't need to use a local company.
You could also visit the sister site www.iva.co.uk for more IVA specific advice.
Just to add that for an IVA be it a normal one or a full and final you HAVE to go through an IP. You can't do it yourself.
Ascend may you find no resistance
Know that you made such a difference
All you leave behind will live to the end
The cycle of suffering goes on
But memories of you stay strong
Someday I too will fly and find you again
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year 2029
Average Member
590 Posts |
Posted - 17 July 2012 : 22:58:55
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Niobe/OP
I meant go to an IP for advice no matter what.
CAB can put you in touch with who they have dealt with locally, and who they deem to be reputable.
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Views expressed are my own personal views, based on what has happened during my own BR process unless otherwise stated.
Professional advice should always be sought. |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 17 July 2012 : 23:05:33
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I would still recommend sourcing several companies yourself. The local ones may not be the best which is why I posted the link above.
The initial advice is free and there are some excellent companies out there.
The sister site is an excellent source of information, advice and support for an IVA.
Ascend may you find no resistance
Know that you made such a difference
All you leave behind will live to the end
The cycle of suffering goes on
But memories of you stay strong
Someday I too will fly and find you again
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year 2029
Average Member
590 Posts |
Posted - 17 July 2012 : 23:36:39
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A balanced view is great.
There's probably more than one option for the OP.
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Views expressed are my own personal views, based on what has happened during my own BR process unless otherwise stated.
Professional advice should always be sought. |
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nepensioner
Starting Member
18 Posts |
Posted - 17 July 2012 : 23:38:34
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| CAB would direct you to either Payplan or Grant Thornton, both national companies. |
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year 2029
Average Member
590 Posts |
Posted - 18 July 2012 : 04:05:24
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Although national companies, the CAB would've built up a rapport with whoever represented them locally.
Incidentally, Grant Thornton is also a company that an OR can deal with as an IP/Trustee.
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Views expressed are my own personal views, based on what has happened during my own BR process unless otherwise stated.
Professional advice should always be sought. |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 18 July 2012 : 07:04:15
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I agree it's important to research companies yourself. Just because the CAB recommend particular companies doesn't mean they are right for the poster. The two companies mentioned both have good reputations but whether it's a full and final or normal IVA it's so important to feel comfortable with the company you choose.
View my blog at http://skippy13.blogs.iva.co.uk/
The more I have to do with humans the more I think that the world would be a better place if it was run by animals.
Last IPA payment made on 28th June 2010 and I'm now looking forward to getting married in September 2012 - I'm proof that you can go BR and come out the other side. |
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debtinfo
forum expert
2826 Posts |
Posted - 18 July 2012 : 07:33:40
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quote:
Originally posted by year 2029
Incidentally, Grant Thornton is also a company that an OR can deal with as an IP/Trustee.
It is worth pointing out though so that there is no confusion, the OR strictly does not endorse any Private IP/Trustee, if they are apponted by the OR, then it is done strictly on a rota of all elligable IP's with an office located in the OR's juristiction that has expessed an interest in being on the rota |
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year 2029
Average Member
590 Posts |
Posted - 18 July 2012 : 09:16:44
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Debtinfo,
I didn't intend any confusion.
As Grant Thornton had been mentioned by another poster, out of interest, I was just stating that an OR 'CAN' use that company to act as a trustee.
Many times moonbeaver are mentioned on this forum, and to avoid confusion, anyone reading may think that they are the only IP that are used as a trustee on behalf of the OR.
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Views expressed are my own personal views, based on what has happened during my own BR process unless otherwise stated.
Professional advice should always be sought. |
Edited by - year 2029 on 18 July 2012 09:19:21 |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 18 July 2012 : 09:24:11
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To avoid confusion Moon Beever isn't an IP company. It is a firm of solicitors that acts for IPs or the OR.
View my blog at http://skippy13.blogs.iva.co.uk/
The more I have to do with humans the more I think that the world would be a better place if it was run by animals.
Last IPA payment made on 28th June 2010 and I'm now looking forward to getting married in September 2012 - I'm proof that you can go BR and come out the other side. |
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year 2029
Average Member
590 Posts |
Posted - 18 July 2012 : 09:40:23
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To avoid confusion,
Are they acting as Trustee?
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Views expressed are my own personal views, based on what has happened during my own BR process unless otherwise stated.
Professional advice should always be sought. |
Edited by - year 2029 on 18 July 2012 09:41:11 |
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debtinfo
forum expert
2826 Posts |
Posted - 18 July 2012 : 10:00:07
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No moonbeever are not acting as trustee they are simply employed as an agent by the OR to do a specific job at the instruction of the OR.
The OR does not use anyone as a trustee in the sense you mean, the OR does not choose them and they are not working for or at the behest of the OR, they are appointed by either creditor majority or by Rota |
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year 2029
Average Member
590 Posts |
Posted - 18 July 2012 : 10:08:29
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Sorry debtinfo, but you've confused me and maybe others reading.
Are you saying the OR doesn't appoint a trustee to oversee a bankrupts affairs?
Because that is in direct conflict of my understanding of the very trustees who have been appointed by my OR to oversee my own bankruptcy.
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Views expressed are my own personal views, based on what has happened during my own BR process unless otherwise stated.
Professional advice should always be sought. |
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Is it better for me to get my situation resoved ASAP and go bankrupt ?
