6 Months in and are in major trouble

[poxy]

Evening All,

Me and my partner started our IVA 6 months ago now and are still struggerling. we took it out with B&E and thought it was the right thing to do however i feel this is now wrong.

We have been struggerling and really dont know what to do. our health is now starting to get affected with stress and we are on the verge of breaking up do to the pressure of the IVA.

We currently pay £250 a month and have just had our review, it turns out we owe over a £1000 to the IVA as I have been earning more than the assumed basic. I was told over the phone that I could earn my £1539+10% before having to pay any extra, however it turns out that is not the case and i need to pay 50% of anything earnt over £1539. so that is one problem.

On our I&E form the amount dont tally at all and that is really a major problem. When we first done the form we were told by Blair Endsby that the goverment allow certain guidlines for what we can claim as a monthly exspense for eg House Phone and Internet £10 p/m when ours is more like £30 p/m and then mobile £30 p/m when ours is £60-80 p/m ( we are tied into 18 month contracts and can only get out of these by paying them up, something the rude member of staff could not understand when I was explaining this) and most of are outgoings are like this. So everymonth we are on a loser. They say they are going to take the extra money off us over a certain period but if they do we will go under and end up defaulting. Our boiler packed up 2 months ago and we are freezing in the house and can not afford to buy a new one as you can not get the parts for ours as its over 10years old and its an old style one.

Im in sales so it is very likely that i will earn over the £1539 everymonth, if I earn less we cant live but they dont seem to understand that. how can we get out of the IVA ?

We have £15000 to pay over the 5 years and so far have payed in £1500.
What would be an acceptable final settlement if we were to get help from family ?

What happens if me and the mrs do break up, we have a mortgaged house under shared ownership and a 3 year old daughter. ?

Anyone who can advise I would be really grateful. my partner is getting extremely ill and she is going to see a doctor, who im sure will stop her from working. What happens then ?

Please Help!!!

Regards

Poxy

[Shining]

Hi Poxy, you certainly sound like you're struggling and I'm sorry that your IP or their representative aren't being very understanding?

Have you considered bankruptcy to draw a line under your debt problems?

The health of you and your partner is paramount and I feel sure that someone with more constructive advice will be along soon so do stick around. We're always here to offer advice and support where needed x

[poxy]

Hi Poxy, you certainly sound like you're struggling and I'm sorry that your IP or their representative aren't being very understanding?

Have you considered bankruptcy to draw a line under your debt problems?

The health of you and your partner is paramount and I feel sure that someone with more constructive advice will be along soon so do stick around. We're always here to offer advice and support where needed x

Hi Lesley I have seriously considered this and Im worried about what will happen to the house ? I'm sure there is no equity within it as we have missed one payment and only payed a half payment last month and this month. We will have to start overpaying in January which will make the situation worse.

If we declare bankruptcy will they take our house ?

How long will it last ?

Do we pay monthy payments ?

Regards

Poxy

[Shining]

Hi there I'm no expert on Bankruptcy and hopefully Skippy will be along soon but in the interim why not take a look at her blog as it's very informative. I understand that they don't always take your house if you're in negative equity and someone i.e a 3rd party can buy the beneficial interest, you can receive a IPO of a set amount which lasts 3 yrs.

[kallis3]

Hi Poxy and welcome from me as well.

If your house is in negative equity then you should be able to keep it if you go bankrupt. You would just need someone to buy out the beneficial interest which will cost £1 plus £211 costs. You will have to keep up with your mortgage payments though.

You will remain bankrupt for a maximum of 12 months and may have to pay an Income Payment Agreement for 3 years if your disposable income is more than £99 per month after your priority payments have been made.

I would speak to BE in the first place and tell them you can't manage. If you decide BR is for you, then you will have to let your IVA fail by missing three payments. This will enable you to save up for the court fees.

[Shining]

If your house is in negative equity you would not lose it. You would just need to get someone to buy the beneficial interest from the OR. This will cost £1 plus £211 costs and your house would be safe as long as you continue paying the mortgage.

Bankruptcy fees would need to be paid too direct to the Court.

[poxy]

If your house is in negative equity you would not lose it. You would just need to get someone to buy the beneficial interest from the OR. This will cost £1 plus £211 costs and your house would be safe as long as you continue paying the mortgage.

Bankruptcy fees would need to be paid too direct to the Court.

Sorry what does OR mean ? ( sorry if it sounds dumb) Can my brother buy the beneficial interest and what does that mean ?

[Shining]

OR is the official receiver

[Shining]

http://www.insolvency-service.co.uk/

[kallis3]

The OR is the Official Receiver, and your brother can buy the BI. It doesn't mean a lot really, the house is still yours and you must continue paying the mortgage, but it is taken out of the bankruptcy.

[kallis3]

The OR is the Official Receiver, and your brother can buy the BI. It doesn't mean a lot really, the house is still yours and you must continue paying the mortgage, but it is taken out of the bankruptcy.

[MRBLUESKY]

hi poxy you are going through the ringer at the moment.its sounds like youve signed up to a iva because of desperation but your income and expenditure dont tally up,you hav,nt been looked after here by your ip/case officer.it seems to me that your iva was doomed to failure from the start.you may be ok with the house in bankruptcy,one of the experts will advise better on this.to consider bankruptcy you will have to fail your iva by missing 3 payments.you and your partners health are more important here.because of health problems your creditors may consider a low full and final offer to complete your iva from a third party.with nothing to loose it might be worth a try say a ball park figure of £5000.it would help if you could get a letter from the doctor to confirm the stess that your wife has got because of your desperate situation within your iva.

[poxy]

The OR is the Official Receiver, and your brother can buy the BI. It doesn't mean a lot really, the house is still yours and you must continue paying the mortgage, but it is taken out of the bankruptcy.

so the house stays in my name and my partners, but by my brother paying that money it takes the house out of bankruptcy.

Can anyone come after me for money after the 12 months ? If I do have an disposable income of more than £99 pounds say £250 do they take it all ?

I spoke to the IVA person and he said that say I was to go bankrupt and 2 years down the line sell my house and make say a £10k profit they could come after me for it. is that the case ?

Kallis & Lesley thanks for your help so far

[Shining]

You're more than welcome for the help Poxy, I'm not sure to be honest about the house equity situation but know that someone with more knowlege will be along very shortly just hang in there and someone will be here with the answers and reassurance you need. x

[kallis3]

Once you are declared bankrupt, no one can chase you for money anymore.

What happens with your disposable income is that with anything over £99 you will pay across between 50 and 70% of that (it is a sliding scale)

Not sure what would happen if you sold your house after two years though.