Questions about Individual Voluntary Arrangements and Insolvency.

Moderators: TalbotWoods, JaneClack

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By charley24
#23790 My Husband and I have debts of around £30k, loan to Beneficial Finance of £18k also have cards with GE capital and a loan with them, couple of catalouges etc. And Credit Cards.

We just got married 3 weeks ago, and starting married life very much skint.

He is a Civil Servant - earns approx £1300 per month, I am on incapacity benefit of £360 Per Month. We also receive £120 per month in Child Tax Credit and £112 in Child Benefit.

Our debts total around £900 a month, then we have rent, utlilty bills, food, etc (we have 2 children aged 6 and 1).

We haven't missed any payments yet and have used our credit within the last few weeks (used CC and have bought some clothing from catalouge).
Just wanted to point out this was because I had no money to buy my daughters any winter clothing, coats etc.

We really thought we could keep up and no we didn't have a huge wedding, it was small and we kept costs down. All overtime has been cancelled at hubbys work for the next 8 months (so I know without that we will go down the pan.)

This month I have just too much to pay out, we will have less than nothing left. It is becoming a worry and I am looking to what to do next.

I have read about IVA's, and some stories are good, some bad.

We are council tenants and would prefer this to bankruptcy (hubby works in a legal capacity).

Here are my questions:

Will an IVA be refused because we have had recent credit?

57% of our debt is from Beneficial Finance, if they say no, does that mean we will be refused (as they have the main vote)?

Will we be able to amas any savings (We haven't any, but could we save some money for things like Xmas etc) Or would they take it?

Will they take 50% of any bonus/payrise?

How long to set up ? Will I spent 8 weeks fobbing off calls and letters?

I probably have loads more questions, but hope someone can help with these.

BTW Was thinking of using as recommended on this site.

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By charley24
#23810 I was looking on the net last night, trying to read what would be best,now very confused !!

IVA and Bankruptcy can both be viewd online and I have read they arepublished in your local paper (No way would I want my family knowing about our problems)

So can anyone give me advice about DMP ?

I think my main concerns are:

If people can still contact us, and try to make us pay (get ccj's, people coming to house baliffs etc)

We do have £600 a month disposable income (well according to the figures we do, can't say I seem to have that much)!!!

BUT, will every option take all of that ? What I am trying to say is that we would like to be able to pay our bills AND live comfortably.

I have an interview with incapacity benefit in November, I could lose my payment of £360 per month - how would this affect things ?

Ok I am babbling - sorry !! Asking too much, just wanted to say we haven't missed any payments or anything as yet.

Love vx
User avatar
By Nicky
#23825 Hi Charley

Ok, in answer to your questions

If people can still contact us, and try to make us pay (get ccj's, people coming to house baliffs etc)

Creditors can still contact you whilst in a DMP, however, once you have appointed a third party to deal on your behalf, they should go through them. They should never refuse to deal with a third party as long as the third party are working in your interest. Most creditors will go via the DMC anyway, there are a few who try to still contact you, but your answer is, talk to Payplan here is my ID number and you need say nothing more.

We do have £600 a month disposable income (well according to the figures we do, can't say I seem to have that much)!!!

Alot of the times people dont quite work out their I&E accurately enough, it is likely you under estimated your allowance to what the guidelines suggest you need to live on and pay for your monthly expenditure. If you do choose Payplan, they will go through this with you. However, you do need to pay back as much as you can afford, if you want the creds to accept your offers of payments, they can tell if you are offering the maximum you can afford by looking at your I&E (Income and Expenditure).

I have an interview with incapacity benefit in November, I could lose my payment of £360 per month - how would this affect things ?

However your income varies during your DMP so will your I&E and so will your offers of payment. Thats absolutely fine because you always prove your income and justify your offers of payment via your financial statement.

just wanted to say we haven't missed any payments or anything as yet.

Which is why you are struggling now, so now is the time to make your life more normal by paying what you can realistically afford rather than sacrificing things you need by paying your creds more than you can afford.

Hope that helps.
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By charley24
#23864 Hi Nicky, thanks for the advice, so appreciated !

I contacted payplan and they are calling for the finance interview thingy on Friday evening.

I have made a list of all debts, acc no's, addresses, payments etc. (Taken all day but I have been so thorough.

Would Anyone care to advise what would be best solution based on the following ?


£32363 (Sheesh)

£993 (Minimum Payments Only)

Total Incomings
(Interview Re: My Incapacity Benefit on Nov 9th - If Lost Income will decrease to £1533.00)

We Live in A Council House

no Car

2 Children aged 5 and 1 Year

Total Household Expenditure (I have tried to work this out LOL)
(rent, Household, Ctax, Utlilites, travel, etc etc)


IN: 1903
DEBT: 993


If I lose My 370 Per month I am 641 short.

We have

Beneficial Finance Loan - 17k
GE Capital Loan 3.5k
HSBC Loan - £350
4 Storecards with GE Capital - 2500k
Storecard - Duet - £450
Catalouges- £1142
3 Credit Cards (Bcard, Cap 1,Halifax) 6720k (5k is with bcard)

Would love some opinions on what is the best way to move forward, DMP, IVA or Bankruptcy.

The 3 loans are joint, everything else is in my maiden name (got married 3 weeks ago).

Any advice appreciated !
By Mel_Odious
#23866 Hi Charley and welcome to DQ.
I would have said bankruptcy but with only one of you doing the deed, the other will be chased for the joint debts. I would therefore say that you both go bankrupt. That would be my choice as you have no home to protect. An IVA would restrict you for five years and if should something gp awry and you couldn't keep up the expected payments of all your spare income, then you could still be made bankrupt. With a DMP you will be paying for many a year. I would plump for you both going for bankruptcy, I did and have never regretted it. yes it will appear in your local paper but be honest would you know where the bankrupts are listed in your local? If you do know, then when was the last time you looked at them? See what I mean. Speak to Payplan and see what they suggest and ask them about bankruptcy.

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By charley24
#23869 Hi Mel thankyou !

I must say I have never seen bankruptcy notices in the paper, I am terrified, do all local papers do this?

I am worried, I have a friend who knows a few people who have tried to go bankrupt and been refused, on what basis do bankruptcy petitions get refused ? Do you go to your meeting and the judge says no?

Sorry for all the questions, I am really confused !
User avatar
By charley24
#23875 Hi Nicky, my hubby works for what used to be legal aid (like a quango/civil servant job) he says that it wouldn't be an issue?

Does anyone know if he is correct????

I just called the local paper they said they dont have many notices in often and usually its the solicitor or someone whoputs it in?

All these years of reading the paper and I haven't seen any?
#23876 I have a dmp with cccs and yes my circumstances are very similar to yours, both companies offer free advice. I contacted both because i wasnt sure what to do, both will suggest the best things for you to do,I didnt want to go bankrupt for exactly the same reasons so i understand how you feel, but if they had suggested then i would have considered it.

With your I & E i was well out with mine and underestimated my figures they will check these for you

Let us know how you get good luck
User avatar
By charley24
#23882 Thanks Poppy, its all very confusing :(

As Hubby and I are both on 2 of the loans, I presume we both have to go bankrupt so we both pay £460 each ?

I haven't even missed a thing yet, but we don't have much of a quality of life right now, I am worried as I have used my CC etc in the last week or so as I was desparate, I am worried they will say no because I knew I was coming to a point where I couldn't pay yet still kept borrowing?

Your advice is so appreciated !
By Mel_Odious
#23887 As far as the job is concerned; hang on for Rameses, he may know as he is a Civil Service Lawyer. It will only go in the one local I believe. In london it is in the legal colums and I couldn't read it without a magnifying glass.
I don't understand why people are telling you they were refused bankruptcy. I have advised on here and on other sites for the last 4/5 years and have never heard of a petition for bankruptcy being refused.
Check out the Insolvency site for more questions on the subject, you can even download the Forms from there and submit them online.

User avatar
By Nicky
#23894 I think at one time a petition could be refused if the courts felt that the debtor had not taken necessary advice regarding their situation, they then would refer them to an IP to check them out to see what options are available, however nowadays, the format has changed whereas the courts take the assumption that you have sought advice and the only solution is bankruptcy, which is why it would be odd for a person to be refused bankruptcy.
#23896 You mention that you have used your cc was it just to pay for a bill like a catalogue etc, mbna refused my first offer because they said i had used the card but it was only to pay off a bill, if they see its only for an essential they are likely to be ok, I would wait and see what happens on friday before you make a decision they are both ok and it certainly wont hurt to read up on all the alternatives ..
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By charley24
#23914 Well my credit card was used a few weeks ago to pay the reception for our wedding (long story - parents were paying - fmaily fued we had to foot the bill)

Catalouges I had ordered some clothing and furniture a few days ago and some haven't arrived yet. Should I cancel the order/send back when arrives ?

I think I have got myself into a place where it's bad and I feel it can't get worse?

Just so confused about everything, reading allabout the options but then reading good/bad reports on here. Soit's hardto be 100% sure what on earth to do!!!!!!!!!!!!!!

Love vx
#23915 If its something you really need weigh up the pros and cons, i would also suggest you make token payments of 5.00 to each creditor while you sort it out which is what cccs or payplan will suggest anyway, include in it the reference you wwill be given here was what i put in mine

Dear sir

Payplan ref.....

I am currently experiencing financial difficulties and am unable to make my full required payment.

I am in talks with Payplan and once i am sorted i will contact you again with the outcome.

Please find enclosed a token payment of 5.00.

Thank you for your assistance in this matter.

Yours ......


I hope this helps, its best to feed your family and pay your rent & utility bills before anything else

Take care