Bloody Money (or lack of ...)

[the grim reaper]

When my ex ran off with my mate we owned a house together, my ex didn't work so I covered all the bills etc but the ex kept overapending on food etc and I had to use my credit card to bail us out - frequently.

The house was in the mortgage tie-in period and, when the ex left, I had to sell up, I could just cover the mortgage etc but had no money left over and the CSA came calling for loads of money. So, I sold up and paid the massive penalties to get out.

Now, three years on, the credit card bill is still huge, the loan I took out to cover the penalties is killing me and I still have over £33k of unsecured debt. I am renting with my new partner but I am so bloody skint that it is killing me. I've been out of work since Christmas but now have a new job but the debt is piling up.

As far as I can see my options are

a) grin and bear it, things will get better in time but only very slowly.
b) Go for one of those IVA things, it goes against what I believe in, it's my debt and I shouldn't try to escape it but I am starting to consider it.
c) Bankruptcy, shouldn't happen with a decent job but is it more or less painful than an IVA?

I'm renting at the moment and can't save, so buying a house won't happen for ages. The only issue is that I am living with my fiancee, will her situation be affected if I do this?

Any other ideas? Help!

Cheers

Grim
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[killa]

You've had it harsh mate, sorry to hear that.
I can't offer advice really but if it was me i'd want a fresh start.
If you are employable thats something, maybe dicuss it with your current employer?

Makes me think about when i moan about being skint, although i usually am im not in a position to start thinking extremes.
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Cleverly disguised as a responsible adult.
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[Itchy]

Even though I'm generally against bankruptcy though mainly against reckless people, though you do not seem reckless as the circumstances were not of your own creation.

I think you should seriously consider bankruptcy. Ironically it will cost you £650.

I'm not going to be one of those incredibly reckless people who think bankruptcy is a free ticket out, because it isn't. But if you have no real valuable assets (house is the biggie and fat wads of money in bank accounts and or trusts).

ALSO

That you have no qualifications or career that will be destroyed by bankruptcy (police, judges, cops, MPs, accountants or anybody who works in finance , or a co director can't be bankrupts). Then go down this route as if you IVA they will still rape you of a large amount each month and if your circumstances change they can end up bankrupting you anyway.

If you are not reckless then it should be discharged within a year and an unofficial black mark be stuck against your credit rating for the next 3-5 years. This means small loans will be denied and credit cards will have rape levels of interest or if they give you loans it will be rape level of interest.

Shouldn't affect the missus though, but the fact you aren't married means you can't transfer assets out of your name.

Anthea turner and Grant Bovey are experts at this, he scammed 10000s of people millions transfered everything to Anthea and went bankrupt.




As a side, I think that interest rates in the UK are going to go up and away due to a bond strike event, those unsecured debts are going to suffer punitive levels of interest post election. And because they are not locked in inflation and corresponding interest rates to combat this will make those debts much bigger.

However just to cover myself, you may want to go and see a CAB or a financial advisor on this, as I am not allowed to give financial advice only opinions.
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[the grim reaper]

My only concern is that I require security clearance for my new job and I don't know if the job will be affected by an IVA or Bankruptcy. The forms specifically asked about those very issues, I guess it affects your ability to be immune to corruption if you are in a financial mess.

I agree that people should pay what they owe but it also pains me that my ex walked away without owing a penny, as she had no income and my soliciator advised that creditors would leave her alone and come after me if I was to try to do the same.

I feel for my current partner as all of this is my mess and she is feeling the pinch too, we're getting married later this year and are both working hard to pay off the debt. As of next August we both have a loan ending that will help but that is a long way off!

Cheers

Grim
____________________
Adverts don't always work: Remember that advert, where the army are running across the desert and they have a wounded man on a stretcher. They get to a ravine, the bridge is down and a caption pops up that says, 'What are you thinking?'. I don't know about you but I was thinking, 'Christ, I'm glad I'm not in the f***ing army'.

[J0Al1]

Realisticaly, if you kept with it, when do you imagine it would be cleared?

[SlimRick]

[the grim reaper]

My big loan has another 5.5 years to run, the credit card is costing me a fortune but they have very nicely upped the interest so that the minimum payment only pays off the interest. I have spoken to them to explain that I can't afford the higher interest rate but they don't care. That card won't be paid off for years to come, until I have more money each month to throw at it, above the minimum payment I am currently paying.

So, in short, probably about ten years to clear the credit card, 5.5 years to clear everything else.

Cheers

Grim
____________________
Adverts don't always work: Remember that advert, where the army are running across the desert and they have a wounded man on a stretcher. They get to a ravine, the bridge is down and a caption pops up that says, 'What are you thinking?'. I don't know about you but I was thinking, 'Christ, I'm glad I'm not in the f***ing army'.

[mooserx]

If you get declared bankrupt, the creditcards and loans will be written off, but it will shag your credit rating for a minimum of 6 years, i dunno about an iva but they are purely for un secured debt, ie not a loan or mortgage secured on a property, a friend opf mine was declared bankrupt in september 2008 and was discharged by april 2009, he said it was the best thing he ever did, as after the bankruptcy petiton was signed by the judge, it became illegal for his creditors to contact him in any way shape or form. If you aren't bothered by a crappy credit rating then i'd say bankruptcy looks like the best option for you . But we are just fellow forum members, some financial advisors/accountants will give you an hour of their time for free to discuss your options.

[Itchy]

[panrider_uk]

[J0Al1]

[willis1337]

Be aware that CSA debts are not affected by bankruptcy ie will not "fall away".

[the grim reaper]

There's no point in changing my big loan, I got it when interest rates were low, if I consolidated now I'd be worse off. I have no house, no savings, only unsecured debt, so there is no problem with losing assets. I have a good financial advisor friend, who got me my mortgage and wills sorted, I may give him a ring, or I may choose to tough it out. My new job has potential for wage rises, so maybe that's the better way to go!

Thanks everyone for the advice.

Cheers

Grim
____________________
Adverts don't always work: Remember that advert, where the army are running across the desert and they have a wounded man on a stretcher. They get to a ravine, the bridge is down and a caption pops up that says, 'What are you thinking?'. I don't know about you but I was thinking, 'Christ, I'm glad I'm not in the f***ing army'.

[J0Al1]

Good luck

[Visitor Q]

If you have no assets at the moment, surely bankruptcy is the way forwards?

You could always 'create a legend' and go that route... You got many qualifications on your name?
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[the grim reaper]