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 These figures look bankruptcy worthy to you?
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mighty reds
New Member

United Kingdom
72 Posts

Posted - 26 April 2009 :  12:48:04  Show Profile  Reply with Quote
Relevant factors
--> rented accommodation
--> my job / career is not adversely impacted I have checked
--> No assetts, savings or even any one item worth over £500
--> £33,000 total debt (one personal loan, multiple credit cards and overdraft)
--> Girlfriend just moved in to my one bed flat, she's a very low earner (see below, her income has been taken into consideration).


After doing a full budget planner with National Debtline using their "guidance as to what's reasonable living expenses" and with my bills etc added on, I have a monthly surplus of £440. This takes into account that my girlfriend would be expected to contribute to the rent, housekeeping and bills in a "pro-rata" way (i.e. I earn 3 times her salary so she pays 33% of rent, bills and housekeeping)

--> So, left with a £440 surplus
--> Mimimum payments are about £550 a month now and will rise to about £650 when my last set of promotional credit rates expire
--> I've tried to get a new 0% credit card and failed (probably a good thing eh!) and I've also tried to get a debt consolidation loan at 8.9APR and failed so I have tried one last throw of the dice

--> 33,000, going to cost me £650 (ish) each month just for the minimum payments, if I somehow upped it to £750 I might be able topay it all off in 8-10 years at a total cost of £45,000 according to many hours of on-line calculations recently. Remember £440 surplus and thats with me working a 2nd job (one evening a week).

--> no assetts, savings,
--> got a child who lives with his mum, i pay mainteancne and its been factored into above stats about surplus etc

I'm thinking best case scenario (financially) over next 5 or 10 years is to go Bankrupt?

Any advice or corrections of my thought process here much appreciated!!!!

rumbletumble
Starting Member



United Kingdom
17 Posts

Posted - 26 April 2009 :  13:25:04  Show Profile  Reply with Quote
Hi there

Just a thought here but have you looked into a DMP or an IVA as you have a reasonable amount of DI per month and maybe that could work for you.

Are you actually looking at going bankrupt now or just touching the water to see what your best options are?


James.
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mighty reds
New Member

United Kingdom
72 Posts

Posted - 26 April 2009 :  13:36:38  Show Profile  Reply with Quote
Exploring options, I think my debt is too high for an IVA and I keep hearing horror stories about them, National Debt Line have advised me against IVA in my position but perhaps that is still an option?

I haven't done much research into a debt management plan to be honest. One of my main concerns is I'll never be able to pay the most of the debts off because of the high interest!

I've mostly been focussing on the bankruptcy route on the basis I am telling myself now that the con's of bankruptcy appear better than the con's of unmanageable debt!



Thanks for your feedback.
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gettingoutofdebt
forum expert



2418 Posts

Posted - 26 April 2009 :  13:36:39  Show Profile  Reply with Quote
Hi,

Bankruptcy should really be the last resort however if you don't have any assets it is an attractive solution as you would only pay 50% or your disposable income so would have some money left over each month.

You should speak to a couple of Insolvency Practitioners and maybe the CCCS so you can see what your options are; an IVA or DMP may be better. If you do petition for bankruptcy you will be asked by the court whether you have sought advice on your options and if you haven't the judge won't approve the bankruptcy.

The Insolvency Helpline (http://www.insolvencyhelpline.co.uk/) has more information about an IVA and also the implications of bankruptcy.
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rumbletumble
Starting Member



United Kingdom
17 Posts

Posted - 26 April 2009 :  13:42:40  Show Profile  Reply with Quote
Mighty reds

I do think as gettingoutofdebt has said that you should realy look at all the options open to you before you commit to one thing. Bankruptcy worked for me but it is not something that should be taken lightly and as quoted above should be a very last resort.
Get some more advice and dont place all your eggs in one basket. Take your time and know your options.
Hope it all works out for you.

James.
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Niobe
Administrator



United Kingdom
4590 Posts

Posted - 26 April 2009 :  13:51:33  Show Profile  Reply with Quote
Your debt is not too high for an IVA. Our debts combined are over £80,000 (mostly mine) and we had an IVA.

I would check out one or two firms on www.iva.com. You will get free and impartial advice as to all the options open to you and the best way forward for your circumstances.

I also think that £440 DI would be an acceptable sum for an IVA as well.

Don't just jump straight into BR without exploring everything else first.

The glimmer gets brighter all the time

Jan
xx
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mighty reds
New Member

United Kingdom
72 Posts

Posted - 26 April 2009 :  14:52:17  Show Profile  Reply with Quote
Thanks for this everyone, food for thought, will take a look at some of the recommendations
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