Note: You must be registered in order to post a reply. To register, click here. Registration is FREE!
T O P I C R E V I E W
Redurn
Posted - 19 November 2008 : 19:21:35 Hi I basically just want to know what my chances are of the court accepting my declaration of bankruptcy. Here's my financial situation summary: Unsecured debt £30,000 Value of house £155,000 1st Mortgage on house £152,000 2nd Mortgage on house £25,000 Current joint income per month £3,300.
I recently contacted a company in regard to IVA. They assessed me financial situation and said I could afford to offer creditors about £700 a month. I disagreed and on their advice wrote to my creditors offering them part payments which amounted to £350 per month. Some of the creditors have accepted it and some haven't. Many are still adding interest and charges to my account. I'm thinking bankruptcy is now my only option. I don't care about losing the house or any possessions. I just want a clean slate and to start again. I'm worried though that I may apply for bankruptcy and get 'turned down'. What do you think my chances are?
3 L A T E S T R E P L I E S (Newest First)
John
Posted - 20 November 2008 : 22:14:54 Hi
when you phone the helpline you will not speak to an advisor immediately. Leave your name and number and request an evening call back.
I would like to speak to someone however it isn't very easy for me to do this between 9-5 mon-fri.
Can I phone outside of these hours?
John
Posted - 19 November 2008 : 21:03:13 Hi
I don't see why your petition would not be accepted. I would also take another look at IVA if that is truly your preferred option. Try another IP. I'm not sure what expenditure you were claiming but you can meet the criteria for minimum payment. 40% of £30K = £12K + £6K approx IP fee totals £18K divided by 60 months = £300 per month which is within your own budget estimation.
The question is are you claiming a much higher monthly expenditure than the guidelines will allow the IP to propose to the creditors. The expenditure allowances in bankruptcy are generally accepted as more generous than in IVA but not by huge amounts. That said even if the expenditure allowances were the same, having "£700" of DI per month in bankruptcy means the OR would claim £490 (70%) not the full amount.
If you would like to try for an IVA again leave a message for me on the helpline and I will call you tomorrow and give you the details.
