help, dont know what to do

[stevenosman]

hello everyone, my name is steven and this is my firs time posting something like this but need as much help as possible,

i have been stressed for months and the reason is being in Debt,
i have around 25k in debts, but my income is very low, with my wages and tax credits i only get around £1300, my out goings are around £1350, this is no including food or petrol,

I realy dont know what to do, i try not to let my wife worry, but she knows the extent of the debt, i feel awfull as i have a 10 and 6 yr old,

any help would mean the world to me

[kallis3]

Hi and welcome.

You have taken that important first step by admitting your debt problems.

Depending upon your normal outgoings, you might be suitable for an IVA. If you have no assets, then bankruptcy could be an option.

Speak to an professional as soon as possible. Visit www.iva.com for a list of companies and reviews. You will receive free and impartial advice about all the options open to you and you will be able to see which is the best one for you.

There will be a solution for you to get back on track.

We're all here for you with any questions or support you may need.

[stevenosman]

by doing the sheet on there, looks like i am unstuitable in getting an IVA, so looks like i amy have to go to CAB, saying that i will be going, no point hiding anymore, i need money to pay for my kids food and cloths

[kallis3]

You are better speaking to someone on here about a DMP rather than CAB.

If you have no assets, then bankruptcy could be a solution for you. It is not as bad as it sounds and you would be able to start again with a clean sheet.

[stevenosman]

i know i'm sounding a little silly now, but what is a DMP,

i did contact payplan, if i sent letters to my creditors in making an offer could that work, but i dont know how much to offer them, as in my previous post my income is very low

[kallis3]

A DMP is a debt management plan, and Payplan would be a good firm to assist you with it.

Your creditors are offered pro rata payments, which are decided by the amount you owe each one.

The only thing with a DMP is that your creditors are not obliged to do it and if they do, they don't have to freeze interest and charges and it can take you a long time to pay it off.

[stevenosman]

If my Creditors refused my offer, is there anothe solution then i could do, i dont want debts no more, my credit cards are going once everything has been sorted, and once the bank loan is over, thats it for me, i have learnt from being a silly greedy man, and seeing £ signs in my eyes..now look at me a FOOL

on tuesday i firm contacted me and said that he could cut my debts a month to onbly £250, they said it would take 9year and 9 months, but i was so unsure what to do i told them i would have to sit down and think it over with my wife, if they could 100% guarntee this i would dive at the chance.

[kallis3]

I would always be wary of a company who contacts you - they usually charge you a fair amount for doing something which they cannot guarantee.

Who was this firm?

The firms on www.iva.com come recommended and are reputable.

Have you thought about bankruptcy?

And you are not a fool or a silly, greedy man. You are the same as the rest of us on here who just cannot afford to pay off everything you and are looking for help. No shame in that.

[stevenosman]

the firm that i spoke to was called
*Link removed*

as for bankruptcy i haven't thought of it and have no idea in which way to go about it, i know this may seem silly, but i dont want to lose my care, i have been payong my car for 42 months and only have 18 months left. would i lose my car?

Sorry Steve, you can name the company, but you can't put any links down to it.

[stevenosman]

i take it that firm is dodgey, im glad i found this site now

[kallis3]

Bankruptcy is not too hard, you can do it yourself by filling the forms in online.

There are several posters on here who have been bankrupt who will hopefully come on and give you some advice. In the meantime, have a look at this site:

http://www.insolvency.gov.uk/

That might help you.

As regards your car, how much is it worth?

[MrsKnight]

Hi again & sorry I posted on your other (same) posting - Kallis is a wonderful poster on here & a huge help to the forum & I totally agree with the advice kallis has given.
Shop around for advice rather than just taking on one firms views of your situation.
Good luck & keep with the forum for some wonderful help & advice - its the one thing I wish I had found before I started our journey.

[stevenosman]

Thank you Mrs Knight, Kallis my car now is only worth around £2500, i paid £10000 for is, chevroet tacuma

[MelanieGiles]

Your best bet would be to have a chat with an insolvency practitioner who will advise you about all of the options available to you and help you to calculate your affordable monthly disposable income.

There may be more than one solution available to you, but it is best to understand the advantages, disadvantages and implications of each one so that you can make the right choice for the future.

[stevenosman]

Hi Melanie, as for chating with an IP, i have spoken to payplan is that an IP, If you know of any could you let me know please