Topic: Dont know what todo?

[oh jeez]

hi, im after some opinions really on what is maybe the best thing todo.
i owe about £20,000 on 3 credit cards and a loan, im in process of sdplitting up with my girlfriend of 11 yrs, i am planning on selling my house to pay off mortgage and renting somewherecloser to work. i earn about £1450 a mth (without bonus and we rarely get it anymore) but payout about £1650 (ish) when girlfriend moves out that leaves no money for food. everything is in my name house and debt.
im pretty confident in saying if im lucky i may break even with house or be in neg equity, highly dougbt ill make any money.
i have a campervan that i go away in, this aint a luxury ist my life, its what i live/work for. it is only worth a £1000 at most. i need to keep this.
my wages have gone down in past couple of years thats why im stuffed.
 
thanks in advance
 

[James Falla]

Hi there oh jeez
 
Have you calculated your disposable income? This is the amount you have left over after you have taken into account all of your living expenses but not including payments to your unsecured debts.  Once you know roughly what your disposable income is, then you can consider the right debt solution for you. It is likely that one of 3 options will be best (IVA, debt management plan or bankruptcy). Once you sell your house, bankruptcy would be the fastest way to become debt free but this may risk your campervan so one of the other options could well be better for you...

[oh jeez]

thanks for reply james
in my current situation after i have paid my bills and filled my car with fuel but not paid credit cards and loan im left with £301. but this is to buy food as well. per mth
if i can sell my house and move close to work to cycle i would have £676  but this would be to buy food with as well.
ive read up on the things youve suggested and just cant work out me best plan. bankruptcy seems best but sound a bit silly really but i cant lose me van. 
 
 

[James Falla]

Hi oh jeez
 
Based on what you are saying, after budgeting for food and clothing, you really have very little left to make payments to your creditors. As such Bankruptcy would seem to be a sensible way forward. However as I mentioned, you would probably have to be prepared to let your van go unless you can argue that you need it for day to day travel. Given you do not want to do this, perhaps you should try a debt managemet plan first to at least give you some time to sell your house. Once this is done, you may then free up enough cash to propose an IVA. With an IVA you would probably be allowed to keep your van given it has little or no value.

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hi oh jeez,

instead of going through the IVA route you could try the debt reduction company a friend of mine works for, the basics of it are pretty simple, they can reduce any unsecured debt you have by up to 70% and with them you'll be debt free sooner than you would through debt management and once the process is done your credit rating is clean. If you need any more details please don't hesitate to ask