| Author |
 Topic  |
|
debtinfo
forum expert
2826 Posts |
 Posted - 24 October 2009 : 22:21:52
|
| as far as bankruptcy is concerned the measure for insolvency is "that you can not pay your debts as they fall due" to extend that definition it means that you cannot pay the minimum payments contractualy required out of your income after all essential household expenses have been paid. so for instance if you need to use credit in order to make the payments you are insolvent even though the payments are getting paid. Taking an extreme example if you had a property portfolio worth £10,000,000 and debts of £100,000. You had anincome of £1,000 pm and debt repayments of £2,000pm then you could go bankrupt as you do not have the cash to hand to pay the debt as it falls due. |
 |
|
|
DJ83
Starting Member
10 Posts |
Posted - 25 October 2009 : 10:26:00
|
| I do meet all of my payments. I pay the minimum off of my credit card and then use it immediately to buy petrol for the month, so the credit card debt is never reduced. Based on the posts, there have been mixed replies, but it appears that I can't be classed as insolvent, therefore can not claim bankruptcy. Is this correct? I contacted one of my creidt card companies and they have put me on a 6-month repayment plan where they reduce my repayments by 50% and freeze the interest for 6 months. After 6 months, we'll re-assess. It does go on my record for 6 years and my credit card can not be used. Was this a good move to make? I wanted to do the same with my bank regarding the overdraft fees and my loans, but they both said that they couldn't offer anything like that unless I contacted governed debt companies. One advised the CSSS? Again, is it worth me contacting groups like that, or shall I see how I get on with this repayment plan? My home season ticket repayments end next month which means I will immediately be £110 a month better off :-) |
|
|
|
debtinfo
forum expert
2826 Posts |
Posted - 25 October 2009 : 10:56:32
|
| Think about it like this if you cut out all but essential expenditure and cut up all creditcards now. would you be able to live and pay all the contractualy required debt repayments, if you cannot then you are insolvent and can apply for bankruptcy |
|
|
|
Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 25 October 2009 : 12:43:01
|
If your season ticket payments stop this month, I am a little confused as to how you are only £110 per month better off when the payments are £200 a month and you have £60 left over anyway.
I still say that you are not insolvent as you have disposable income. I suggest that you need to speak to a professional about your circumstances.
Visit www.iva.com for a list of companies and reviews. Give one or two a ring and you will receive free and impartial advice as to all the options open to you and the best way forward for your circumstances.
The glimmer gets brighter all the time
Jan
xx |
|
|
|
Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 25 October 2009 : 13:18:14
|
Hi DJ
Well done for raising your head to look at your own financial situation, perhaps some of the answers are not what you wanted to hear but the benefit of this site is that people will give it you as straight as they can and from (sometime bitter) personal experiences.
When I got in too deep and realized my finances were out of control my head was totally fuzzy and I needed direction with simple steps, so without wanting to appear condescending here are some suggestions
Get organized with your personal income and expenditure sheet, identify all of your outgoings, including the social events. Every penny should be accountable.
You have already identified 260 that can be used to attack the debts but what other luxuries or commitments can be suspended UFN. How can you make other savings
Once you have an I & E and suggested savings go and speak to your bank, will they help? Try to call and speak to your creditors before they pass on debt to third party. I am uncertain if paypal or similar will be able to help you but worth a call.
The local CAB may also be a good point of contact
From what I have read in this thread you appear to be a long way from BR, it is not the easy option but you are right to review your personal finances and help yourself out of the hole that you find yourself in, please do not be tempted to go WTF and go on mad spending spree.
Good luck with the difficult road ahead
|
|
|
|
DJ83
Starting Member
10 Posts |
Posted - 25 October 2009 : 13:21:50
|
| Kallis, There are 2 parts to the season ticket; £110 for the home season ticket and £90 for the away season ticket. The home season ticket payments end next month, the away S/T continues til March @ £90. Was contacting my credit card company a good move? It stays on my credit record for 6 years apparently. I don't see how the bank could help, they didn't seem very accomodating on the phone :-( |
|
|
|
RHB
Senior Member
1159 Posts |
Posted - 25 October 2009 : 13:53:29
|
I think it has to be a good move because you don't want to get more crdit if you are struggling to repay what you have already borrowed do you?
It might be worth contacting CCS & tey might sort a debt management plan out for you, so the interest is frozen & you pay back a certain amount over a number of years. |
|
|
|
Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 25 October 2009 : 14:47:26
|
With a DMP you pay back the whole of the amount that you owe, regardless of how long it takes and there is no guarantee that interest and charges will be frozen.
That will only happen if you do an IVA.
DJ83 - anything bad will be on your credit record anyway, and as long as you are paying less to your creditors, then the six years is flexible. It is only set in stone if you do an IVA or go BR.
The glimmer gets brighter all the time
Jan
xx |
|
|
|
chester2005
Average Member
United Kingdom
786 Posts |
Posted - 25 October 2009 : 15:57:00
|
just because you have disposable income does NOT bar you from bankruptcy!!!!!!!!!!!!
there are many people who have 70% IPAs from their disposable income
BR and IVAs are a legal way of having debts written off either in 12 months BR or up to 5 years IVA
as for the credit card co marking your crdit file for 6 years, BR or IVA stays on your credit file for 6 years after so total 7 yrs (BR) or 11 yrs (IVA)
i would strongly suggest you speak free and confidentially to someone like Paul Johns at www.revivauk.com
or Melanie at www.jonesgiles.co.uk they both offer free impartial advice and are experts in their field
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurman)
RevivaUK helped me through it all i can't recommend them enough!! |
|
|
|
Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 25 October 2009 : 17:12:08
|
DJ83, you really need to take professional advice about your situation. Have a look on www.iva.com for details and reviews of insolvency practioners who will be able to give you advice about your options.
You have disposable income, and if you can use this to repay your debts without going BR then maybe you should think about it. Write down all of your essential outgoings and look at where you can cut back - you may be surprised at what you can do.
BR isn't an easy way out and shouldn't be viewed as such.
And just to clarify, both BR and an IVA stay on your credit file for 6 years from the date of the BR order or creditors' meeting, not 7 and 11 years.
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/
27 IPA payments made, 9 to go - in single figures! |
|
|
|
Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 25 October 2009 : 17:55:19
|
I agree with Skippy - if you can manage to make your payments and your DI is going to be going up then I would continue as you are.
The glimmer gets brighter all the time
Jan
xx |
|
|
|
Topic |
|
am considering bankruptcy
