I have just done all my figures and I only have £113.00 disposable income left each month and have £25,000 debt should i consider bankruptcy now instead of IVA. Was thinking of asking my parents to pay off my car hp for the time being as that would give me more as I can't be without my car. I have equity in my house but can't get at it at the moment. Any advice would be much appreciated!!
If you have equity in your house then I wouldn't consider it. The OR would want the house sold and you would have to move into rented.
You could consider a debt management plan for the time being.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Hi
Asking your parents to pay off your car HP is a sensible route, this will mean that you could continue your IVA payments. When are you due to finish your car payments and had this been factored into your IVA ?
Regards
Oublie isn't in an IVA Andy, it is something he/she is thinking about, but they don't appear to have a lot of DI, which is why I suggested a DMP.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I would still seek advice from an insolvency practitioner directly about your options. If anything, you should take advice on the level of your income and expenditure.
There are a few IPs who will look at acting for clients with low disposable income, so it may still be an option for you, as well as bankruptcy or a DMP.
Please make sure though that you can afford any payments to an IVA or a DMP. If you struggle to start with you may well end up having to go bankrupt anyway.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I have just returned from my parents and they were fantastic when I told them the whole miserable tale. They are going to give me money for my car hp, tax, insurance and petrol so it will free up some disposable income. They have offered to pay off 6,000 of my debt as well but I'm not sure if this is a good idea or not. Also is it ok for them to give me cash monthly towards the car or will this be taken into account as disposble income?
With parental support, you may well now be in a positon to propose and IVA to your creditors, so I would take professional advice at an early stage now. Good luck!
Hi
You would declare the cash each month as income but then declare the HP costs and motoring costs as expenses. Your parents could offer the 6K and this could be paid into your IVA at the start along with your monthly payments. You may end up repaying the whole debt within the five years so do explore the debt management plan route as well as the IVA route.
How much will your disposible income be ?
Regards
Good luck oublie. Brilliant news that your parents are being so supportive.
Phone one of the experts on here and they will be able to give you specific advice.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
andydavie wrote:
Hi
You would declare the cash each month as income but then declare the HP costs and motoring costs as expenses. Your parents could offer the 6K and this could be paid into your IVA at the start along with your monthly payments. You may end up repaying the whole debt within the five years so do explore the debt management plan route as well as the IVA route.
How much will your disposible income be ?
Regards
My disposable income now would be £300. I hope this will be enough. If I didn't take the 6000 from my parents would it make that much difference. Also if I did they were going to pay off the cards it covers is that the wrong way to go about it.
Got to admit I am a little worried about DMP as I have read that the interest is not always frozen and the late payment charges can still be added. Also that they can change their minds along the way and ask for more money or all the outstanding debt. Hooray for Parents, I hope if my children ever get in to trouble I will be able to help them as much - hopefully they will never get into trouble like me - I will make sure I teach them that very important lesson. If no money you can't have it - go without!!
A DMP is a least secure option than an IVA, especially if you do not own any assets - but it is not a formal insolvency process so both procedures are very worthy of consideration.
