Hello All
I apologise if this question as been asked a million times before but I am desperate for some guidance.
I live in England and owe 26,500 across 6 creditors and all unsecured. I have been on a debt management scheme now for about 2 and a half years and unfortunately I am making no dent in the overall balance. The debt management scheme is crucifying me and 320 per month!
I have researched the various options at length and more or less understand all the implications of each option.
OK here's my situation. I earn 1283 per month with no prospect of overtime or entitled to any bonus. I don't own a house and have very few assets apart from the usual domestic appliances - Television, Furniture, Kitchen Appliances etc. I don't even own a car as I drive a fully expensed company car.
I have looked closely at an IVA but this would leave me with very little disposable income and it also seems very expensive way to clear my debts. For example I would have to pay 200 per month into the IVA over 5 years totalling 12000 whereby the IP takes 6500. This would undoubtedly stretch me financially and if my circumstances change for the worse over that 5 years would course the IVA to fail.
The other option I have looked at is Bankruptcy and here is where I have my questions
If I were to declare myself bankrupt could the court throw it out by saying that I have enough disposable income for an IVA?
Secondarily, could the court make me pay as much as 200 on a payment order based on the fact that I live in private rental accommodation in London and only earning 1280? My most basic living costs have been calculated to be
1000.Thirdly, which would be more damaging to my long term credit the IVA or Bankruptcy. I would eventually like to buy a house!
And finally based on the information above could somebody be as candid as possible and advise me on taking out the IVA or going bankrupt.
Anyway - many thanks for reading and I would sincerely appreciate any help anybody can give me.
Much Respect NM