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mcmatty
Starting Member
1 Posts |
 Posted - 04 January 2010 : 15:12:43
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Hi - I have been looking at this board for a number of months now and, well, New year, new resolution to sort out the debt! All advice gratefully received on the best course of action. Here's the info:
Total unsecured debt around £60k (credit cards, unsecured loans)
Secured loans around £15k
Mortgage £130k, house value about £130k
Child maintenance £4k per annum
Salary £50k
Car worth about £4k (no loans on this).
We currently have about £600 / month for all bills, food etc left over. I know it seems like I earn a lot but after everything goes out there doesn't seem a lot left. And believe me I am not pleading poverty - I know I am in a better position compared to a lot of you folks out there.
All the debt is mine, house etc in my name as well.
Wife has gone to uni so no second income. I am currently on a DMP for £320 / month - I looked at an IVA but they wanted far more than this for some reason.
Questions - If I go BR:
1. How much risk is there of me losing the house?
2. Will I lose the car (travel 60 miles / day for work)?
3. What is the likely view of the OR as I am earning? Will they force an IVA?
4. Is there much difference between an IVA and BR now anyway? I am hearing more and more horror stories about IVA's and am thinking better bite the bullet. I don't want to be in a DMP for the next 20 years.
All comments will be gratefully received.
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John
New Member
United Kingdom
73 Posts |
Posted - 04 January 2010 : 15:50:22
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Hi
in no particular order....
(must stop watching those TV talent contests!!!)
3. The OR cannot force an IVA, Bankruptcy is your civil right if you are insolvent which it seems you are.
1. Get a valuation from an estate agent suggesting you're contemplating moving home for work purposes and would be looking at a quick sale. You already appear to have £15K neg equity and in this scenario any more should be gratefully received!
With £15K neq equity your wife should be able to buy your beneficial interest for £1 + £211 in fees.
2. Possibly, again get a proper valuation from a trader as you're thinking of selling. Or find the same make model year etc on Autotrader, search nationally and look at the cheapest available.
If it is worth £4K at auction the OR will pass you £2K to £2.5K to replace it or you could negotiate.
It will cost upwards of £500 to collect the car and auction it leaving £1,000 to £1,500 for the creditors. Offer £750, if you can find that sum and see what happens.
4. It depends what you mean. BR will be the cheaper method thats for sure. Both are on the Insolvency register for the same amount of time. You will struggle to get any credit any time soon in both cases.
Hope this helps
John White
Independent Debt Consultant
Specialising in Bankruptcy |
Edited by - John on 04 January 2010 15:51:34 |
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debtinfo
forum expert
2826 Posts |
Posted - 04 January 2010 : 19:18:10
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I think the IVA will be on the Insolvency register for the full term (typically 5 years) whereas the bankruptcy is normally only on the register for a max of 15 months (3 months after discharge)
I could be wrong but a quick look shows plenty from 2005-2009 |
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John
New Member
United Kingdom
73 Posts |
Posted - 04 January 2010 : 21:00:23
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Hi
my sincere apologies debtinfo is absolutely correct.
In BR you will be on the register for around 15 months. In IVA for it's duration.
However, you BR will be on your credit report for 6 years. In IVA it's 11 years (term of the IVA plus the 6 years after completion). Although of course the IVA being on there and showing as being satisfied may be preferable to BR status.
Many thanks for the correction debtinfo.
John White
Independent Debt Consultant
Specialising in Bankruptcy |
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In 2 Deep
Junior Member
United Kingdom
161 Posts |
Posted - 04 January 2010 : 21:36:46
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Hi John,
In an IVA, the defaults will remain for 6 years on your credit file from the date the IVA was accepted by creditors and not 11 years.
This was a concern of mine when I researched IVA v BR back in 2004.
quote:
Originally posted by John
Hi
my sincere apologies debtinfo is absolutely correct.
In BR you will be on the register for around 15 months. In IVA for it's duration.
However, you BR will be on your credit report for 6 years. In IVA it's 11 years (term of the IVA plus the 6 years after completion). Although of course the IVA being on there and showing as being satisfied may be preferable to BR status.
Many thanks for the correction debtinfo.
John White
Independent Debt Consultant
Specialising in Bankruptcy
Treat EVERY Penny as a prisoner. |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 04 January 2010 : 21:55:33
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Gettingoutofdebt is correct, an IVA remains on your credit file for 6 years from the date of the creditors' meeting.
If an IVA is settled early it will be removed from the insolvency register almost straight away.
Tomorrow is a mystery, yesterday is history, today is the present, a gift to make the most of.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/
30 IPA payments made, 6 to go - the end is in sight! |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 05 January 2010 : 21:39:22
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Hi McMatty
sorry to read about your predicament
you have raised lots of issues, I would suggest making contact with one of the experts ( i think that they will all offer the first phone call as free and talk through all of the options available to you, including the consequences of each.
From what you have typed i would have thought BR is the option but I would also say do not rush into any of the options make certain that you have properly planned your entry and exit from BR
regards Richard |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 06 January 2010 : 15:09:10
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Skippy and In 2 Deep are correct about the length of time the IVA stays on your file.
The only thing you need to check at the end is that any defaults registered after the date of approval have been removed.
I recommend that you seek advice from a number of firms - www.iva.com is usually a good place and the advice is free and impartial.
It may well be that by talking to another firm you could do an IVA, your DI sounds fine to me.
Buckle your seat belt Dorothy, 'cos Kansas is going bye bye.
Jan
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BR advice please for newbie
