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[05omegav6]

Al, what's the real market value of the Merc at the moment (based on miles, condition etc) and does that still leave you short on the finance?

If the market value is more than the finance then there's a small chance I might know someone in the market.  if it's not then I understand that wouldn't help you one jot, sadly

As I understand it the finance is significantly higher than the value, around £8k? 

Vt value, ie finance write off is 12,000
Outstanding agreement value is 20,000
Settlement figure is 17,297 as above

Ideal selling price is the settlement figure...

[Taxi_Driver]

ok, not wanting to get this accidently locked.....

My suggestion to help Al....

I guess Stepchange did an income and expenditure with you....with the outcome of surplus cash being a negative number .....

I think I can see you owe £5k to credit card company/s

Write to these with the income/outcome statement and offer them £5/month....they will accept I would imagine....ok you credit history will be shit .....but at least you've reduced that monthly outgoing....if they take you to court, with a negative of surplus cash....the best the judge will do is award them maybe a £1/month... 

Just a thought may help 

[The Sheriff]

From what I've read here, you still have the Merc in your possession? Surely that has to go back ASAP, it's only ever going to decrease in value as time goes on, reducing the amount you can reduce the debt by?

I think the problem would be in settling the difference between handing it back and the value of the vehicle against the amount owed, given that there aren't the funds available to settle that.

I could be wrong, but that's the way I read it.

That is the crux of that part of the problem... clearly, if it were sold for say £14,000 then it would only require £3,300 to clear the agreement. This would be required within seven days... on the other hand, returning it would require me to pay £8,400 to settle my half of the agreement (the finance company taking the car as their £12,000 half), possibly over an extended period of time, and based on what I can afford.

The apparent discrepancy here is that if the agreement is settled by me selling the car, I am rebated the interest from the remainder of the agreement, where as if the car is returned, then I am liable for half of the full agreement.

However, with the car now three, soon to be four payments behind, I have basically run out of time to sell it so it either gets returned or it gets repossessed.

I do not have the car currently,  but do know where it is, and am trying to get it returned/arranged to get it collected.
The Insignia is currently leased out, but should be settled fully by the end of July...

You don't have the car, but know where it is? Fickin sure I'd know where it was too.

[05omegav6]

  I might be soft in the head, but I'm not a complete retard*



*Contrary to popular belief

[05omegav6]

Right...

The suggestion is that I enter an IVA, proposed at £250 per month... with the alternatives being a Debt Management Plan, again at £250 per month, or Bankruptcy.

The DMP is a free repayment plan, so eventually all my debts will be repaid in full, but will all be defaulted long before that happens... leaving my credit rating in ruins until six years after the last item is settled. Again proposed at £250 per month.

Bankruptcy does exactly what it says on the tin, with discharge after a year and fifteen months on public record from date of Bankruptcy. Credit rating affected for six years from discharge. Potential to pay a monthly amount for upto three years... need to confirm what the amount and time scale would be.

Proposal as it stands is to enter a DMP with Bankruptcy as a Plan B

[05omegav6]

That said, there are a few queries to which I am awaiting guidance on...

[tigers_gonads]

Al

Your choice bud and understand why your natural instinct is to pay your way out of this mess.
Believe me, I used to think like that until I finally got my head around the way these financial people think and work.

I run up a hell of a lot of dept because I was a daft @wat with money but kept on top of it because I was working hard and getting paid.
When the world turned to shite 2007 ish, a few people heard on the grapevine that I was struggling with getting the money in so (I believe) these baastards got there heads together and collectively decided to withhold payment which went into thousands 
If it went legal, I would win the case no problem so that was my first plan but needed funds to survive / trade.
When I went to my bank manager to seek help via a extended overdraft, the "see you next Tuesday" said he would look into it and get back to me within 48 hour.
Well he got back to me okay 
I popped upto the cashpoint till in the morning and it chewed up my card 
Walked into the local bank and was told to contact the business centre in Leeds.
Rang the centre and was told my manager would ring me later.
He didn't ring me but later the postman came with a nice letter from him.

The short version is my account was locked, the bank for closed on the business loan and iirc, gave me iirc, 21 days to clear 13 grand ish.
I jumped in the car and drove to Leeds and refused to move until "we had words" 
After much pleading and begging, the "see you next Tuesday" went tap tap on his computer and offered me a fresh loan a full 7% higher than the last one to pay the original debt
When I questioned that and mentioned bankruptcy, he just leaned back and said we will have 10% of everything you have 

That is when my attitude to these @ankers changed for ever.
To the financial system, you are nothing but a customer number who is there to make money from and they don't give a shit about you, your morals or feeling and will bleed you dry without even blinking 

After some bloody good advise off a friend in the trade who had exactly the same thing happen to him 6 months previous, I pocketed all moneys made for a few month, paid off a couple of wholesalers who I had been with for many years and had always stood be me in times of trouble and banged my bankruptcy petition in via the Royal British Legion's financial expert.

Filled out a declaration with a clerk of the court and sat back and waited for the call from the judge.
Popped in to see him, he read it .............. asked me what my intentions was for the future.
I told him I was going to see out the 12 months. The cheeky git smiled and ask me if I was still going to "do guvvies" 
I just smiled ........................

I walked out of there with a smile on my face and dept free ....................

[05omegav6]

I had to google that... proper Northern expression

The DMP will give me a chance to get things in order and get my self employment accounts filed. Won't improve my situation significantly,  but it will be one less thing to worry about...

[steve6367]

Al

Your choice bud and understand why your natural instinct is to pay your way out of this mess.
Believe me, I used to think like that until I finally got my head around the way these financial people think and work.

I run up a hell of a lot of dept because I was a daft @wat with money but kept on top of it because I was working hard and getting paid.
When the world turned to shite 2007 ish, a few people heard on the grapevine that I was struggling with getting the money in so (I believe) these baastards got there heads together and collectively decided to withhold payment which went into thousands 
If it went legal, I would win the case no problem so that was my first plan but needed funds to survive / trade.
When I went to my bank manager to seek help via a extended overdraft, the "see you next Tuesday" said he would look into it and get back to me within 48 hour.
Well he got back to me okay 
I popped upto the cashpoint till in the morning and it chewed up my card 
Walked into the local bank and was told to contact the business centre in Leeds.
Rang the centre and was told my manager would ring me later.
He didn't ring me but later the postman came with a nice letter from him.

The short version is my account was locked, the bank for closed on the business loan and iirc, gave me iirc, 21 days to clear 13 grand ish.
I jumped in the car and drove to Leeds and refused to move until "we had words" 
After much pleading and begging, the "see you next Tuesday" went tap tap on his computer and offered me a fresh loan a full 7% higher than the last one to pay the original debt
When I questioned that and mentioned bankruptcy, he just leaned back and said we will have 10% of everything you have 

That is when my attitude to these @ankers changed for ever.
To the financial system, you are nothing but a customer number who is there to make money from and they don't give a shit about you, your morals or feeling and will bleed you dry without even blinking 

After some bloody good advise off a friend in the trade who had exactly the same thing happen to him 6 months previous, I pocketed all moneys made for a few month, paid off a couple of wholesalers who I had been with for many years and had always stood be me in times of trouble and banged my bankruptcy petition in via the Royal British Legion's financial expert.

Filled out a declaration with a clerk of the court and sat back and waited for the call from the judge.
Popped in to see him, he read it .............. asked me what my intentions was for the future.
I told him I was going to see out the 12 months. The cheeky git smiled and ask me if I was still going to "do guvvies" 
I just smiled ........................

I walked out of there with a smile on my face and dept free ....................

The only problem with that is it is not the institutions that pay, they will simply pass the costs onto those customers that do repay. I am not criticising you personally, or Al as I don't know anywhere near enough to do so. I am simply highlighting its not a free slush fund.

[RobG]

The only problem with that is it is not the institutions that pay, they will simply pass the costs onto those customers that do repay.

That happens in any business be it loans, car ins, house ins, in fact anything where businesses charge customers.

[steve6367]

The only problem with that is it is not the institutions that pay, they will simply pass the costs onto those customers that do repay.

That happens in any business be it loans, car ins, house ins, in fact anything where businesses charge customers.

Indeed 

[Taxi_Driver]

Right...

The suggestion is that I enter an IVA, proposed at £250 per month... with the alternatives being a Debt Management Plan, again at £250 per month, or Bankruptcy.

The DMP is a free repayment plan, so eventually all my debts will be repaid in full, but will all be defaulted long before that happens... leaving my credit rating in ruins until six years after the last item is settled. Again proposed at £250 per month.

Bankruptcy does exactly what it says on the tin, with discharge after a year and fifteen months on public record from date of Bankruptcy. Credit rating affected for six years from discharge. Potential to pay a monthly amount for upto three years... need to confirm what the amount and time scale would be.

Proposal as it stands is to enter a DMP with Bankruptcy as a Plan B

You might want to look into that, not sure about the later, but im sure a m8 of mine who went bankrupt...was discharged after 6 months....I asked him about it at the time he told me he'd been discharged....he reckoned they discharge early if its clear you haven't done anything wrong or trying to hide assets 

[05omegav6]

Apparently bankruptcy is unique to each circumstance... But typically lasts a year... Supplementary payments are not always demanded but could last for anything upto three years from date of filing. So it's clearly at the discrepancy of the Official Receiver.

[Phil L]

The only loans I've ever had are student (government) and mortgage, I intend to avoid any others, if I can.

I have a credit card, but that's paid off in full every month. But they offer an ever increasing stupid credit limit.

It's not free money, you are locked in. Bank loans have most freedom I guess, but car HP for example are really bad way to buy.

Best to plan ahead, I'm saving into number of share save schemes. When these mature, that's my pot for new cars. Buy cash, buy only what you can afford with money you have, not what you can borrow.

I'm with you

[The Sheriff]

Apparently bankruptcy is unique to each circumstance... But typically lasts a year... Supplementary payments are not always demanded but could last for anything upto three years from date of filing. So it's clearly at the discrepancy of the Official Receiver.

That's right. And their discretion too.