Debt advice please (iva or bankruptcy)

[GAVBU28]

Fantastic website you deserve a medal.

Anyway to my problem:

I'm currently in approx 30k worth of debt with little or no chance of paying this off. As I'm sure you're aware my options are IVA or bankruptcy but i have a few questions that CAB will not answer:

1) I live with my partner, the house is in her name, i don't want her involved in this but the IVA/bankruptcy companies insist i must include the house in my plan. This is a non starter as the debt was accrued before we met and the equity in the house is hers and not mine. What can i do about this?

2) I have a car thats paid i full by my company but its in my name and i own it and pay it out of my wage each month. If i go bankrupt they will seize this and I'll lose my job. Can i sign the car over to someone else and avoid having this seized?

Anyone got any other advice on these two matters?

Thanks in advance for all your work and help with this matter

[Karnevil]

Which IVA / Bankruptcy companies have you approached ?

IVA will not work for people without asserts that why they will be like that.

If you have value in the car and go bankrupt they may ask for the car to be sold and for you to buy a cheaper one. Although this could be avoided if the OR believes you in the bankruptcy interview.

If you do not own any part of the house and you never have owned any part it will not be entered into the bankruptcy estate.

I will post some links that can help you.

I will answer questions about bankruptcy if you have any and i know most of them.

But I will not advise you if you should go down the route of a IVA or bankruptcy.

[GAVBU28]

Originally Posted by karnevil

Which IVA / Bankruptcy companies have you approached ?

I've spoken to the citizens advice and a local debt company. Debt free direct was one such company and they insisted on including the house i live in despite it not being mine to include. They said that because my creditors write to me at this address they will insist the house is used in any settlement. I'd rather move out before including my partners house as these debts were built up before we even met.

All i want is to start a fresh but keeping my car which is worth around 7k, which in turn means keeping my job. Maybe an IVA is a better option as i can just about afford £400 a month to pay my creditors, but 5yrs is a long time.......

Help!

http://www.nationaldebtline.co.uk/en...anagement_plan

have a read of this and if you fancy talking to them abot it give them a call. A 3rd option and one you may not have looked at. BTW they can help advise on iva and bankruptcy to.

[ED1237]

I don't know if this is any help, but when I got in the brown stuff a few years ago I used Northampton debt and housing advice centre. They have trained debt councillors and deal with all your creditors on your behalf. When you have completed a financial statement they re-contact your creditors and tell them how much you are able to pay them. They also set up something called paylink which you pay the total amount into and they pay your creditors there bit. Both of these services are free of charge and because its run by the Borough council seems to carry a lot of weight. They even attend court with you if it is needed. I only found out about them via the local council tax office, so that should be your first port of call to find out if the same scheme is in operation in your area. We have managed not to have to sell anything and we no longer get annoying letters and phonecalls.

[Karnevil]

I use Consumer Credit Counselling Service (CCCS) .... my debts aren't huge - max 15k - and I own my own house/car etc. and they are helping me out no problems. I dont really get the difference between DMP and IVA so I can't advise you, just tell you what I'm doing. (and CCCS dont take a cut either)

[blutejpj]

My own experience is:-

1. The house is not in your name, therfore they cannot go for it. If it was in your name, and lets say, you transferred it solely to hers in the last two years, then they could make a calim as it would be seen as you disposing of assests.

2.I'm not sure about the car, other than if It can be proved you require it for work, then it cannot be seized, other than that it can.

Things do not get seized as such in bankruptcy.

The OR may say sell the car and I will allow you £500 from sale to buy a banger to get to work or he may take the lot or he may allow you to keep it.

[GAVBU28]

Sorry I've been working away.

Thanks for all your help in this matter.

[opalfruits]

RE: Bankruptcy - If you have contributed to the household bills, the OR may decide that you have a beneficial interest in the equity of your partner's property.