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darren_b
Junior Member
213 Posts |
 Posted - 17 September 2008 : 16:40:41
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Hello All,
one for the experts really, but feel free to chip in.
My wife and I are about to go BR, however due to a slight change in circumstance, we have a little bit of extra cash coming in.
Is there any point, in writing to all of our creditors, and offering to make a 55-70% payment of the debts over 5 years, asking them to write off the rest, and advising them that the only other option is bankrupcty, where they will get a lot less money?
Just to be aware, an IVA is not an option, simply as we require additional money each month, for personal reasons, that the IVA would not allow us (however even with an IPA, we would have more money in BR each month) |
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RHB
Senior Member
1159 Posts |
Posted - 17 September 2008 : 16:45:11
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| How do you know for definite that you will be allowed this money for personal reasons when you are BR? |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 17 September 2008 : 16:51:03
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Hi Darren,
An IVA will be accepted for a minimum of 40% of the debt. With the extra money coming in, you can still go BR and you will contribute back to the creditors for 3 years by way of an IPA/IPO.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
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dazed and confused
Junior Member
United Kingdom
475 Posts |
Posted - 17 September 2008 : 16:54:50
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| Sorry to jump in on this thread but can someone still go for BR even if technically they could still afford to pay the minimum payments on their debts? |
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darren_b
Junior Member
213 Posts |
Posted - 17 September 2008 : 17:02:12
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Hi RHB,
It wouldnt be that the BR would allow those additional expenditures, however, if the IPA took 70% of my additional income, I could still afford them with the remaining 30%.
Julian,
I have spoken to three different companies regarding IVA's and they have all agreed that it doesnt sound right for us - in Summary, I look after ill members of my family, and this does take additional money - however I do this voluntarily, not with them as a dependant. Any surplus income after an IPA in BR would be used towards this.
Thanks |
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darren_b
Junior Member
213 Posts |
Posted - 17 September 2008 : 17:05:56
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| I suppose the top and bottom of my question is - Is there any point in writing to the creditors asking if they will consider a paqrt payment over 5 years - to avoid an IVA/BR? Or would I simply be wasting 24 stamps??? |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 17 September 2008 : 17:35:52
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Hi Darren,
The issue here is they'll probably accept, and in 5 years time when you think it's over, they'll go after you for 5 years interest and penalty charges. Best to bit the bullett and get it over with now.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 17 September 2008 : 17:36:46
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Hi D&C,
If you can afford the payments on your debts, you are not insolvent and it's likely the judge will decline your petition for that reason. You have to be insolvent to declare BR.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
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RHB
Senior Member
1159 Posts |
Posted - 17 September 2008 : 18:14:09
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| If you have aletter from the banks that they would accept your offer, they can't turn round & ask for more later. Just make sure you keep all copies & stop spending on those cards/accounts. |
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darren_b
Junior Member
213 Posts |
Posted - 17 September 2008 : 21:52:07
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| WOuld that be correct Julian? If i have a written agreement from my creditors to say they accept my proposal, with no interest etc? |
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John
New Member
United Kingdom
73 Posts |
Posted - 17 September 2008 : 23:23:54
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Hi
no it's not correct I'm afraid.
Of course if you had such written agreement with each creditor they must keep to freezing the interest whilst the agreement is still in situ.
The problem is that any such agreement is informal and not recognised or therefore enforceable by the court. Thus any creditor can, at any time, during the duration of the agreement change their minds.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 18 September 2008 : 07:20:17
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Hi just to add to Johns words i had an informal agreement with my ceditors, whereby they froze interest and all charges for about a year which we agreed with them and no one else but after that year they wanted more, they knew that it was not agreed through a company or court so they could do what they liked, i then had to make another descion and that was to go BR as i had no way of being able to offer anymore,we were struggling as it was.
Good luck
Jo x
"There is light at the end of the tunnel, if you cant find it get a brighter torch"
For links to help with Bankruptcy, useful web pages and also a run down of my new debt free life, both before and after Bankruptcy, then please visit my blog:
http://debtfreejo.blogs.bankruptcyhelp.org.uk/ |
Edited by - Needafriend on 18 September 2008 07:21:03 |
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