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Hi. I have arrived at the point of no return and would like to request your advice in which direction to go next. I have a debt of £43,000 in unsecured loans(various cards etc) and a £51,000 loan secured to my property. I have never missed a payment to anyone, but I am about to very very soon. "Out of my depth" is no longer appliciable. Will I be able to recover with an IVA or Bankruptcy???

You could either go bankrupt, do an IVA, or even do a debt management scheme (DMP), although I don't recommend a DMP if it will take more than about 8 years to clear your debt, and that's with interest stopped and no charges.

Be aware that if you go bankrupt, you will lose your interest in your home, it will automaticaly pass to the Official Receiver, and if you are unable to buy back the equity after your discharge, the home would eventually have to be sold if there is equity in it. Your name and address will also appear in the public notices of your local newspaper as a bankrupt. You can read all about bankruptcy here http://www.insolvency.gov.uk/guidanceleaflets/
guidetobankruptcy/guidetobankruptcy.htm

Under an IVA you can propose to remortgage your home in the last year of the IVA but you would also have to pay for 5 years rather than 3 in bankruptcy, and also pay a higher proprtion of your disposable income. IVAs aren't supposed to be cheap as they're meant to give a better return to the creditors.

If you would like to know if an IVA is suitable for you, we'd need to know how much you can afford to pay per month towards your unsecured debts, and how much equity there is in your home (After taking into account the secured loan).

Philip Beck - www.freeivaadvice.co.uk

Licensed Insolvency Practitioner and IVA specialist

Unfortunately the link above doesn't work because it's wrapped around on to two lines, you can find the bankruptcy leaflets by navigating from www.insolvency.gov.uk

Philip Beck - www.freeivaadvice.co.uk

Licensed Insolvency Practitioner and IVA specialist

Copy and paste works ! Unfortunately the page width alters to accomodate a long url.. and then the page can't be read without scrolling
admin

Hi there and welcome. If you can post a few more details such as your income, any equity if any in your home, your disposable income(what you have left after normal living costs, dont include debt payments) how many and who your main creditors are. This will allow others to give advice on possible solutions for you.
Try no to worry the solution will be there and you are one step nearer to dealing with it. All the best

Ang



Please visit my blog at http://aguise.blogs.iva.co.uk/

Thanks for your advice. My girlfreind and I are getting all the figures and other info together to view the whole picture. Speak soon.

Hi gatz,
Welcome to the forum. You have found a great forum full of wonderful people who give you plenty of help, advice and support. I know everything seems really bad at the moment, those sleepless nights lying there thinking how the hell did I get into this mess and how the hell do I get out, are a real nightmare. But you have taken the biggest step, realizing you have a problem and seeking help to find a solution. try not to panic too much, there will be a solution for you and you will get through it. There are some great people on here who will be able to give you some sound expert help. Keep posting and you will get there! Good luck!
Best wishes
Mike

Hi Gatz, and welcome to the forums.

Just wanted to say well done for admitting that you have a problem, and hopefully you can find the best solution for you out there [:)]

Chris

Visit my blog at http://cr15py.blogs.iva.co.uk

Ok people, what can I do about the following? Mortgage £142,000 (£936 per month). Secured loan £51,000 (£433 per month) This figure is from Firstplus. Is it true that you can negotiate this Settlement figure?. Credit cards and one Bankloan totals £43,000 (over £500 per month). These numbers do not allow for general living expenses. Still not sure which is best option. Many thanks in advance for any advice/information.

Hi Gatz, On the face of it I think an IVA would be best for you right now. However, you will have to do the sums with the professionals on here to see if it is a viable option. I wish you all the best. Don't lose hope.

Hi there

You have three options available to you if you have debts you cannot afford to repay. These are bankruptcy, IVA or DMP. If you could let us know how much equity you have in your property, and the amount that you feel you could comfortably allocate towards creditor repayments on a monthly basis, we can perhaps advise you further.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

Hi Melanie
Equity in my property would be £40,000 (approx).
Each month I could pay about £250.00. My income jumps between £1700 to £2700. I work in contracting so income is never fixed. Plan "A" was to look at selling to pay off secured loan then downgrade property to free cash on monthly basis. Not sure if true about a possible negotiate on secured loan. I have had this loan for 4 years and settlement figure is same as original loan taken out!!! Many thanks again for any advice/information. I am not down about the situation I have put myself in, I am just looking for a solution to enable me to get on with it.

Hi. Does anyone know if you can negoiate on the settlement figure given by Loan Company???(secured) Equity in property is less than settlement figure.
Thanks

Anything is possible - and I understand that Firstplus are quite amenable to a deal, but I have no first hand experience of this.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp