Author Topic: In a Mess....Help!  (Read 1628 times)

Gem2011

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In a Mess....Help!
« on: Oct 25, 2011, 01:34:40 PM »
Hi everyone...

I'm new here and after searching endless websites found this one...

I am after really some proper advice, spent years listening to people that dont understand my situation or giving me the wrong information all together, making my mess a worse one...so please, if you dont know the right advice just say  ;)

I have around £35,000 worth of debt...

Link Finanical (MBNA loan) £3,954
Barclays Bank (Loan) £16,104
Barclaycard (credit card) £7,436
Avon £134
Natwest (Credit Card) £403
Alliance & Leiciester (credit card) £775
Barclays Bank (overdraft) £1,064
HFC bank (credit card) £4,304 - Secured against house CCJ via Restons charging order (we think that this may not be valid)
T Mobile ( ex phone contract) £227.18 Capquest Debt Recovery passed to Fredrickson International Limited
o2 (ex phone contract) £148.87 Buchanan Clarks & wells Debt Collector

All the above were orginally in an IVA, which was accepted by Debt Free Direct in September 2009 but appears to have closed...as I have recieved a closure form off them this week and no notice of this?

Since then I have also gained more debts;

Virgin Mobile (phone contract) £329.47....I only owe £100 but apparently they want the full contract fee and that is with 2 debt collections agencies it seems as I've had letters off them both, BPO Collections in Glasgow & S.R.J Debt Recoveries in Woking.
British Gas Debts which were passed from a previous property when we moved and they wouldnt transfer the amounts to our new property which they have done previously, Gas £361.58 and Electric £229.66
We now also have these propertys British Gas  Duel payments due of £247.25, as speaking to the IVA company a couple of weeks ago they advised me to change suppliers to get a better deal, which I have done but have come across this final bill in the process which Debt Free Direct were saying could go into the IVA on receipt but with recieving the IVA closure forms this week, I assume I can no longer do that..

I dont know whether to now, start a debt management plan myself or through a charity organisation, offer full and final settlements on the little ones and then do a set amount to the others...I have got some templates off National DebtLine, or apply for Bankruptcy...then again Im not sure what that entails and how to go about it...

I also have a a property with an ex partner, but this charging order is against it and we are now tenants in common, Im not sure whats left on the mortage, neither am I sure if there is any equity, but I do know that she cant afford to remortage without my name being on there and that she appiled for tenants in common for a reason at our spilt.

If anyone has any information or help that they can give me at all...

I'd really appreciate it  Thanks Kevin

James Falla

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Re: In a Mess....Help!
« Reply #1 on: Oct 25, 2011, 04:22:58 PM »
Hi Kevin
 
It sounds like your IVA with DFD has been failed. Do you know why this happened? Did you stop making your monthly payments? Normally an IVA would not fail unless the payments stopped?
 
How much do you feel you can repay to your creditors each month from now on? This will very much dictate the best way forward for you now. A debt management plan can always be implemented but given the ampount of debt you have unless you can make a sunstantial payment each month it will take you a very long time to repay. I agree that you should also seriously look at the bankruptcy option. However before going any further with this you would have to understand more about the property with your ex. If there is equity in it and you are a joint owner then it could well be seen as an asset which would then be at risk.
 
If you can give a little more information I would be happy to advise further.
Debt Expert & Author
beatmydebt.com

Gem2011

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Re: In a Mess....Help!
« Reply #2 on: Oct 25, 2011, 04:48:23 PM »
 
Hi James,
 
Thanks for getting back to me...
Yes I stopped making payments into the IVA, I couldnt genuinely afford them and really I have no assets to protect to make the IVA worth while...
Without doing an actual spreadsheet I'm not sure what I could afford in a DMP, we did think of the bankruptcy option but with the charging order being there, wasnt sure how that would affect it.
I dont think there's any equity in the property or at least isnt at the moment, we are now tenants in common so i believe that isnt joint ownership and I dont live there anymore or pay towards it, so cant see how the bankruptcy would bother me in reference to the house. I however dont want then start getting hassle off her because if the bankrupcty is accepted and the house is sold...really im not sure how it works, so if you could advise me on what would happen with regards to the property and the charging order etc if i was to go bankrupct that would be great
Thanks
Kevin

James Falla

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Re: In a Mess....Help!
« Reply #3 on: Oct 25, 2011, 05:24:49 PM »
Hi Kevin
 
Given you stopped making payments then I am not surprised that your IVA has eventually failed.
 
Any debt which has been secured with a charging order cannot be included in bankrupty. This would still exist and would be paid in full when your ex eventually decides to sell the house. The issue with bankruptcy in general is that you would have to declare your interest in the property. The action that the OR will take will then depend on the value of that interest (ie the equity). If your interest is worth little or nothing as the house has little or no equity then there is little risk to the house if you go bankrupt. However if there is significant equity there is definitely a risk. As such, before making a decision about bankruptcy you would need to investigate things further to be sure.
Debt Expert & Author
beatmydebt.com