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jane.m
Junior Member
230 Posts |
 Posted - 29 June 2008 : 09:02:27
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my and my husband currently owe about £78,000 and have an income of about £2470.00 per month. We ar currently on a debt management programme but are considering whether personal bankrupcy would be a better option for us. Please advice.
Many thanks
Jane
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Edited by - jane.m on 29 June 2008 09:02:52 |
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Trolly-Dolly
Average Member
591 Posts |
Posted - 29 June 2008 : 10:03:03
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Are you struggling with the DMP? Are you paying an unrealistic amount every month and struggling with the basic essentials to live on? If so, then you may want to explore BR some more. I dont think you will have enough disposable income for an IVA as £2470.00 pm is quite low (thats about what we have and we didnt have enough for an IVA).
If I were you, I would just keep reading this site over and over. Look at past posts and read the links on the left. You will learn so much. BR doesnt have to be scary, but it shouldnt be taken lightly either. There are some big implications, but you will be debt free quicker and given an opportunity to start afresh. Do you own your home? Do you work in the Forces/Police/Finance? These are all things to bear in mind. Just keep posting questions (I do all the time) and soon you will know the right path for you. Good luck. |
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debtfreesusie67
Junior Member
256 Posts |
Posted - 29 June 2008 : 11:15:19
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Hey Jane can you post some more information please. As DM said do you own your own home, is there any equity in it. Also with regards you job have a look at your contract to see if it makes any mention of BR. If you're not sure make an anonymous call to your HR department. I went BR on 21st May and I feel that my life has started again. I had Paul from Reviva's help to do this. Julian is also very helpful.
Hugs
Sue
The only way is up
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jane.m
Junior Member
230 Posts |
Posted - 29 June 2008 : 16:54:06
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HI Sue
I have about £9000 equity in my property. I have enough money to live on after paying my dmp. If I go bankrupt will i loose everything including ny sons games consoles etc. We have checkied with our employers and have been told that our jobs are safe. I am thinking of carrying on with the dmp and then if anybody wants to bankrupt us it is up to them at least we knoe we have tried our best to pay it back. What do you think.
A very grateful jane |
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melanie_giles
Senior Member
1191 Posts |
Posted - 30 June 2008 : 00:21:08
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Have you thought of an IVA as a "halfway-house" between a DMP and bankruptcy proceedings? Could be worth looking into if you are worried about the implications of bankruptcy.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
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Trolly-Dolly
Average Member
591 Posts |
Posted - 30 June 2008 : 07:36:31
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| I agree with Melanie. As you have enough disposable income, an IVA may be whats right for you. You would be protected by the IVA from the courts and BR (as long as you keep to your payments) and all interest would be frozen. There is also a good chance that a proportion of the debt could be written off. If I were you then I would call a couple of IPs (Melanie above is one) and also read some threads on iva.co.uk. You will not have to sell your home in an IVA, but possibly release some equity at a later date. In BR, the OR would probably want the £9k unless afriend or a family member could buy this first. |
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jane.m
Junior Member
230 Posts |
Posted - 30 June 2008 : 17:34:08
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Thank you for your advice on that I will look into an Iva if this is not accepted by the creditors would you recommend staying on the dmp. As i have very little equity in my property do you think there is much chance of the creditors trying to make me br. Also if I am made bankrupt do they takes children games consoles etc. Could you please also clear up for me the difference between a BRU and a BRO. Also I Have heard that they can interview your family or your employer in a bankkrupcy proceeding id this true and for what reason would something like this happen.
Many thanks
Jane |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 30 June 2008 : 18:10:47
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Hi Jane,
Given your level of debt, staying on a DMP would be unadvisable as you'll effectively be paying it off for the rest of your life.
Childrens toys will not be touched. The only assets the OR is really interested are cars worth more than £2500 and property with equity.
A BRO is a Bankruptcy Restriction Order (obtained by the OR though the court) and a BRU is a Bankruptcy Restriction Undertaking (which you voluntarily sign with the OR - if you refuse to do so, the OR will go to court for a BRO). Both hold you under the restrictions of BR even after your discharge at 12 months (can be anything up tp 15 years). However, you have to have been quite "naughty" to get these!
The OR will only interview the bankrupt. They will write to the employer to put them on a NT (no tax) tax code.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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jane.m
Junior Member
230 Posts |
Posted - 30 June 2008 : 18:20:45
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Hi Julian
I have managed to have the majority of my interest frozen and am currently looking at paying it off in about 10 years time. Can creditors still make you bankrupt if you are on a dmp.
Regards
Jane |
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melanie_giles
Senior Member
1191 Posts |
Posted - 30 June 2008 : 21:19:56
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Yes - under a DMP you have no legal protection, unlike a DMP - however it would be strange if a creditor were to petition if you had arranged a repayment scheme with them.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
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jane.m
Junior Member
230 Posts |
Posted - 03 July 2008 : 20:55:48
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Hi
Can you please recommend a reputable iva company as I am unsure which one to use. Also if my creditors are accepting what they are getting at the moment would you advice carrying on with the dmp or trying to get on an iva.
Many thanks
Jane |
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melanie_giles
Senior Member
1191 Posts |
Posted - 03 July 2008 : 23:13:09
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Hi Jane
I cannot recommend a company, as I am not allowed to promote my services on this site - but if you look on www.iva.com this will give you details of all insolvency firms and you can read their feedback good and bad. It might be better to try a couple of firms simply to see if the advice they give you is consistent.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 03 July 2008 : 23:18:32
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You may also want to check out the sister site www.iva.co.uk which has a couple of great supporting Insolvency Practitioners on.
Incidentally melanie ( see above ) is regarded as somewhat of a hero by her clients and is extrmely highly recommended.
I understand that she offers a free telephone review of the liklihood of an IVA being accepted and this is all without obligation.
may I recommend you make a call when you have a moment
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 04 July 2008 : 16:11:12
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Hi Jane,
I am more than happy to recommend Melanie as she does fantastic work!
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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jane.m
Junior Member
230 Posts |
Posted - 06 July 2008 : 09:36:18
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Hi
Thanks for your advice I have sent an enquiry for Melanie by email and I am just awaiting her advice. Does it matter that I live in the North West or do you have too live near .
Many thanks
Jane
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Trolly-Dolly
Average Member
591 Posts |
Posted - 06 July 2008 : 12:59:05
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No it doesnt matter. It will all be done by telephone and by post.
I really think that an IVA would be your best option and not the DMP. I had a friend who was in a DMP, all was going well, then one day one of her creditors decided it wasnt for them anymore and wrote asking for a F&F!!! She had no protection. With an IVA you will be paying it for 5 years and will be entirely protected. I cannot recommend Melanie high enough. Before your first telephone talk get together all the names of your creditors/ account numbers and balances. Also try and make up a list of all your expenditures (car maintenance/petrol/pocket money/insurances etc etc). have it all to hand and it will go much smoother. You may also want to start gathering the following info: Account balances of any loans not settlement figures, but actual balances), your latest statements for cards etc, last 3 months of bank statements and wage slips, mortgage statement including any early redemption figures if tied into a fixed rate, 2 valuations of your home (get two local estate agents in and ask for valuation in writing, tell them you are thinking of moving), council tax statement, Life assurance policy, photo-copies of your passport, any original loan agreements (if not you can get copies from the creditor).
Thats all that I can think of for now. You wont need that for your telephone call, but will need it for IVA proposal (if thats right for you).
Good luck and keep posting x
You can read my blog here;
http://drowningmummy.blogs.iva.co.uk/ |
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would personal bankrupcy would be better option?
