1st Timer in need of advice please!

[pnicho]

Hi Everyone,

 

This is my first time posting but have been on forum re: Bank Charges for a long time.

 

I had a Ltd company (Recruitment) and own house (50% equity) the CREDIT CRUNCH.

 

I owed around £120k on top of mortgage at xmas time, luckily sold my house and paid off secure loan of £58k and some of my credit card balances. I now have £35k of debts.

 

My debt balances are -

 

£15500 Ulster Bank - Personal guarantee of business a/c overdraft

£5300 MBNA Credit Card

£5000 Virgin Credit Card

£3500 Barclay Card

£5000 Halifax Overdraft Personal

£750 Halifax credit card

 

Total monthly debt servicing - £800 approx per month if left as is

I am closing down business and have gained new employment on £20k a year renumaration. I have recently turned 30.

 

I would appreciate any advice or chats with similar experiences. Ideally I don't want to go bankrupt, have researched on IVA not sure about debt management plans.

 

I have an option of moving g/f in charing rent of £400 a month which could help over time reduce debts, but it's game over when that happens

 

Thanks

 

Paul

[Dodgy Geezer]

Why dont you want to go BR ?

With no assets you would be discharged after 6 months.

With an IVA or DMP you could be paying forever and get nowhere.

Just my opinion, but £35k is to big a burden for anybody.

Why is it game over when GF moves in ?

Seems like £400 cash in the pocket that nobody needs to know about. ( Who said that )

[Ginas1401]

Seems like £400 cash in the pocket that nobody needs to know about. ( Who said that )

 

lol

[pnicho]

For career purposes I didn't want to go down BR route. The extra £400 a month would be great but living with partner 24/7 might not be soo great!! Suppose I have to take the plunge eventually. I do feel like I would like to pay some monies back and also have a life. Also the £400 a month could maybe help towards a debt management plan (Don't have too much info on this at present).

[Dodgy Geezer]

My advice is to see a qualified Insolvency Practitioner ASAP.

You should be able to see one for free as they think they might get a multi £££££ IVA management fee out of you.

Go armed with ALL the questions you need answering. You dont have to use them at the end of the day.

 

Good Luck. Keep us posted.

[loobyloo85]

Hi there

 

Looking at your level of debt, if you have disposable income at the end of the month of £150+, an IVA would be an option for you to look into. I understand a lot of IVA companies charge upfront fees, but many do not charge anything. All you would need to do is get in touch with an IVA company, give them your income and expenditure details and details of any assets. If you move into rented accomodation with your girlfriend, this may free up some extra money for you at the end of the month to pay into the IVA. You would need to have stable income for the IVA, so would be best to wait until you are in employment again for this. The IVA company would then get in touch with your creditors on your behalf, and draw up a proposal for you to send to all of your creditors. It is then down to the creditors whether they accept or reject your proposal. If your creditors accept your proposal, you would need to pay your monthly payment into the IVA each month. All interest and charges would be frozen on your accounts, and after 5 years of making monthly payments, the remainder of your debt will be written off. It will also not affect your employment or have any stigma attached like bankruptcy.

I hope this helps, and best wishes

[uptoeyeballs]

If your creditors accept your proposal, you would need to pay your monthly payment into the IVA each month. All interest and charges would be frozen on your accounts, and after 5 years of making monthly payments, the remainder of your debt will be written off. It will also not affect your employment or have any stigma attached like bankruptcy.

I hope this helps, and best wishes

 

This is all true, but be aware you will have a strict budget for 5 years and for many expenses there will be limits that may be much less than you're used to. In addition your contribution to the IVA will normally be reviewed annually and increased if your surplus rises. You will have a bit more control than in BR though.