I am desperate and need help.

[ukhotmichael]

I am currently paying off debts to debt collection agencies and have been doing since 2001 and 2003. I also have a CCJ. I am unsure how long I left to pay and how much the outstanding amounts are. My salary has now been cut by about £400 per month and I am considering bankruptcy. I am wary of doing this as I have been told it will 'scar me for life.' Should I consider an IVA or try to contact these companies and pay the outstanding amounts? I am desperate and need help.

[lily]

Hi and welcome

If you worked out what you need to live on, that is essential stuff like food, rent, travel etc, leave out the debts for now. Take this from your current monthly income and how much is left??? It really does depend on that and how much you owe. Bankruptcy will not scar you for life, it can affect certain professions and you could be paying into an IPA for three years but the associated stigma of BR is not what it used to be. Please post some more details and I am sure one of the experts will be able to advise you further.

Please dont worry, there is an answer to every problem and most of us on here, including me, know what its like to feel so desperate.

[chris.g]

Hiya ukhotmichael and welcome.
Br need not 'scar you for life'.
However, an IVA may be your best option but it will be helpful for our experts if you could say how much is owed and any disposable income you have without making payments to the agencies.

[Reviva UK]

Hi there

It seems that you really are in a difficult position because you don't know how much you currently owe.

I would strongly suggest you speak to your DM company and request that they provide you with current debt balances.

From this you can decide if DM is the way forward.

Next step would be to speak to a qualified IP. There are few highly recommended Insolvency practitioners here on the site ( Melanie & Ian) who could then advise you about the liklehood of an IVA ( fixed term debt repayment program)

If this is not suitable then they will give you free advice about your alernatives and perhaps recommend a bankruptcy assistance epert if appropriate

[MelanieGiles]

The best thing to do is to work out how much you could comfortably afford to pay creditors and then decide whether it is worth declaring yourself bankrupt or proposing an IVA. Your decision should be based upon whether you have any assets to protect from bankruptcy proceedings, and how responsible you feel towards your creditors to pay something back over a realistic period.

As Paul says, an insolvency practitioner can help you to understand the options and analyse the advantages, disadvantages and implications of each one. And initial advice is free of charge, so you have nothing to lose.