Author Topic: A little bit of help  (Read 7036 times)

Smith00

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Re: A little bit of help
« Reply #15 on: Jun 18, 2010, 01:40:58 PM »
Explore all possible options like loan modification, debt consolidation and refinance before filing for bankruptcy.

Steven Jackson

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Re: A little bit of help
« Reply #16 on: Jun 21, 2010, 07:19:25 PM »
The issue here Smith00 is that Jlees33 is in an IVA which is failing. Given there is c£15,000 of equity in the property, it seems likely that the IP will push for bankruptcy to release this. As such, the question is how to best manage the situation if this happens particularly in terms of the house. As such, I am afraid, loan modification and refinancing are not options.
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Re: A little bit of help
« Reply #17 on: Jul 28, 2010, 03:01:23 PM »
thanks for you help it looks like we are definatley going down the bankruptcy avenue.
 
How can we rent when all agencies need credit checks?  other than local authorities (it would take us years to be housed by the council) what other options do we have??

Sovereign

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Re: A little bit of help
« Reply #18 on: Jul 29, 2010, 07:39:04 AM »
Hi JLees,


Renting is comparatively easy particulalry if you arrange it before you go BR. If you fail the credit check they will ask you to find a guarantor for the rent. This could be Mum/Dad another relative or good friend who will pass the check.


Make sure that ALL potential problems are dealt with before you go to Court.


Best of luck.


Steve
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Steven Jackson

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Re: A little bit of help
« Reply #19 on: Jul 29, 2010, 11:14:22 AM »
Hello Jlees33
 
Given that you are already in an IVA, your credit rating will already be affected so there is nothing you can do about that. You should be up front about it with the letting agents you speak to. Tell them that you have had credit issues in the past and so the credit check may not come out well and ask them what the options are. As Sovereign says, one solution is to get someone to act as guarantor. An alternative is to pay rent in advance but given your situation, that may not be possible.
 
I also suggest that you come clean with the letting agenet about the fact that you may well declare bankruptcy. If this happens and you are already renting, they will be told anyway and so its better for them to hear it from you rather than out of the blue from the official receiver. That way you have the opportunity to explain that there will be no issue with the rent payments.
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Re: A little bit of help
« Reply #20 on: Sep 16, 2010, 08:02:07 AM »
We have finally failed the IVA and they have sent us the paper work informing us that creditors will now be informed, my husband has already had a phone call so I expect there will be lots more on the way.
 
What do we do now?  We don't have the funds to make ourselves bankrupt.  And will be baliffs be sent to our house.  Will one of our creditors make us bankcrupt and how long will it take.
 
I enquired about local housing and they informed me that with us having 3 children we could be allowed to keep our house.
 
With all the confusing advice things feel very uncertain and we need to end this stress soon as possible.
 
Advice needed asap!!

Sovereign

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Re: A little bit of help
« Reply #21 on: Sep 16, 2010, 12:19:39 PM »
Hello again JLees. The last guy was based in Ohio, USA. Ignore him.


You can now simply wait until one of your creditors starts proceedings for bankruptcy, this will not cost you any money at all. Your IVA supervisor may also petition for bankruptcy and again, this will not cost you any money. There is no way of knowing how long this will take or if anyone will actually take this course of action. You could telephone the IVA people and ask them!


You can certainly expect a lot of phone calls and harrassment. You could change your phone numbers and go ex directory which will avoid this happening. You can also change your mobile numbers and withold the number.


A Bailiff will only call following a Court order. If you receive any Court papers then you must respond to the Court asap on every occasion.


You will not lose your home immediately. In bankruptcy, the Receivers have up to 2 years and 3 months in which to deal with the property. There are housing options available so keep enquiring. Look also at Housing Associations etc and see where they can help you.


If you want to end the stress then you have to find the court fee for bankruptcy as soon as you can.


Best wishes,


Steve
Sovereign Consulting

Steven Jackson

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Re: A little bit of help
« Reply #22 on: Sep 16, 2010, 04:07:33 PM »
Hi JLees
 
Given that you originally said that there was £15,000 of equity in your house, I would assume that your IP will act to make you bankrupt. As Sovereign said, the first thing to do is contact your IP and ask outright what they plan to do. Will they want to declare you bankrupt or just fail the IVA and let you take things from there?
 
If your IP is not going to declare you bankrupt, then you have the choice of either starting a debt management plan to pay off your debt or declare bankruptcy yourselves. Try to find out what your IP will do and then we can advise you further.
 
By the way, I do not necessarily agree with what the local housing person told you. If there is £15,000 of equity in your home and you are declared bankruptcy, I think the OR will be interested in realising this and you could well lose the home whether you have children or not. After all if you are maintaining the mortgage payments, you could equally maintain a rent payment - or so the OR will argue.
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solvemybadcredit

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Re: A little bit of help
« Reply #23 on: Oct 31, 2010, 01:37:51 PM »
I would avoid bankruptcy and go down the equity release route. Ask your debt counselor about tat option before you go bankrupt. Have you looked into those options before?
I help people sort out bad debt.
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Re: A little bit of help
« Reply #24 on: Nov 01, 2010, 10:54:04 AM »
Hi
We have been out of the IVA for a couple of months now and nothing seems to be happening, my husband has had one credit card company ringing everyday but we have had no contact from anyone else.  The IVA company have said they will not make us bankcrupt. 
 
The shock was out of the nearly £4000 we have already paid into the IVA only about £300 went to creditors.
 
We do not have the money to bankcrupt ourselves, so not sure what we should do now.
 
Although we have been keeping up with our mortage payments, it is lower than renting in the area we live in, we would not find a house to fit 5 of us in for less money than the mortgage.  Unless we went into council accommodation but we are not high priority.
 
Debt management etc just wont work for us, this has been proved in the IVA that we have been in for just over 2 years.

Steven Jackson

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Re: A little bit of help
« Reply #25 on: Nov 01, 2010, 06:43:01 PM »
Hi jlees33
 
Given that your IVA has failed and you still have outstanding debts, you need to do something. A Debt management plan could be started up for as little as £100 a month which would start to keep the creditors and their phone calls at bay. I understand that this does not solve your problem but at least it would give you breathing space and time to think.
 
The alternative option is that you simply save up over the next few months for the bankruptcy. If you and your husband both have debts, the person with the most serious balances could take this option and leave the other debts in a dmp. This would half the amount of equity available in the bankruptcy and reduce the risk of loosing the house.
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solvemybadcredit

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Re: A little bit of help
« Reply #26 on: Nov 01, 2010, 09:57:40 PM »
I agree with every word, Steven.
You need to get a debt management plan sorted ASAP!
Good luck. Laura
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Re: A little bit of help
« Reply #27 on: Nov 02, 2010, 06:26:13 PM »
But if we went into a debt management plan wouldn't that take years to pay?  otherwise we would have done that instead of going into the IVA. 
 
We both have massive debt and some of it is joint. How could one of us go bankcrupt and the other do a debt managment plan?

solvemybadcredit

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Re: A little bit of help
« Reply #28 on: Nov 03, 2010, 07:55:13 AM »
Well, it does depend if you have debt together? Or separate... If IVA is not working, there is only the Debt management plan as an option. Yes, I do not like it as it is taking ages, but not likely you will be granted IVA again, and Debt management is still better than bankruptcy!
I help people sort out bad debt.
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James Falla

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Re: A little bit of help
« Reply #29 on: Nov 03, 2010, 04:38:29 PM »
Hi jlees33
 
You are right, a debt management plan would not solve your problem as with huge debts, it would take years to pay them off using a DMP. I think Steve's idea was that you could use a DMP to give you a breathing space initially.
 
In terms of the bankruptcy option, it is possible for one of you to go down that route and the other not. The advantage is that then only 50% of any home equity is involved in the bankruptcy procedure. If this equity is low enough, then a simple buy back of the interest in the property might be possible.
 
Generally, combining bankruptcy and a DMP like this is only really appropriate if one party has smaller debts which could then be dealt with sensibly in a debt management plan.
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