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Helpus
Starting Member
2 Posts |
 Posted - 29 October 2009 : 23:16:53
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Hi, my partner and I owe approx 60k of nearly all on credit cards, 3.5k on an unsecured loan. We have recently had a baby and I'm currently on SMP but even when I return to work childcare means that we cannot afford even the minimum payments. We have approx £400 real dispensable income after mortgate, bills, housekeeping etc. My questions are as follows;
1. We have looked at an IVA but the figures they talked about were us having under £600 per month for everything our family needs - we cannot raise a child on such a tight budget but is there a possibility that BR would be rejected because we can 'afford' an IVA?
2. My car is on finance. If it has to go back will they allow money that would go toward an IPA to purchase another car (it is essential to get to work).
3. We are both going to file for BR - once both accepted will the OR look at our budgets jointly (I wouldn't earn enough to pay into an IPA but my partner would)?
Thanks.
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Daniel Griffiths
Junior Member
United Kingdom
268 Posts |
Posted - 30 October 2009 : 11:58:43
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Dear Helpus
You mentioned mortgage payments you obviously own property, you need to determine your equity in the property as to whether you go down the IVA route or Bankruptcy. Simply in an IVA you are surrendering 100% of your disposable income for on average 5 years, where in bankruptcy its 50% to 70% of disposable income for three years so income wise its much less a struggle the bankruptcy route. An IVA is worth consideration because it allows you greater control of your assetts, business property etc, but if you dont have any then bankruptcy can be the better option. You mentioned you cannot raise your child on such a tight budget, if you feel this then an IVA is certainly not for you as five years is a long time to be penniless. |
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Melanie.n
forum expert
United Kingdom
1282 Posts |
Posted - 30 October 2009 : 13:14:57
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May I suggest you visit IVA.com and read the reviews of some Insolvency Practitioners there and contact one or two (make sure you contact one that does not charge for advice!) and hold a telephone chat with them going right through your debt, income, expenditure, house, etc and take on board the advice offered
Melanie Nicholas
28 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jones Giles
email me at melanienicholas@jonesgiles.co.uk
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theguvnor
Junior Member
100 Posts |
Posted - 30 October 2009 : 14:14:26
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| speak to an expert, i couldnt propose an iva and a DMP meant 48 years of repayment with no prospect ov enjoyin life i went Bankrupt. (i have many reasons but a main one was that my debts were affecting my kids quality of life) you have to do whats right for you and Bankruptcy should be the last resort, but you have to weigh up how tge other options will affect you and your childs future. |
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theguvnor
Junior Member
100 Posts |
Posted - 30 October 2009 : 14:20:01
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may i recomend melanie as a point of contact, she is the most honest and profeesional person i have had cause to speak with regarding these matters, and from my own and others experience on here she will not neccesarily tell you what you want to hear but it will be spot on accurate advice which is free (i reckon she would be a millionaire by now if she charged)
i can not recommendd her highly enough |
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Hi, my partner and I owe approx 60k
