Advice needed regarding possible bankruptcy

[boychild]

Me and my husband both entered into an IVA over a year ago. Since then we have had a baby and means my wage has dropped as i can only work part time and also have to pay for childcare. We asked our IVA company to propose a variation which is being held on the 30th Jan. However we have just received paperwork through and it says that if they reject my husbands IVA the will have to issue a certificate of non compliance and in effect make him bankrupt. If my variation is rejected then i will continue to pay as normal. I know very little about bankruptcy and i need some advice. If my husband is made bankrupt what will happen to our home as its in joint names? Will we be made homeless with a baby? What about our possesions, i know furniture etc is safe, what about our TV, computer etc? How long will be given in our home? Please help.

[MelanieGiles]

How curious to have two differing outcomes if the IVA variations are not accepted. What reason do they put forward for this? And how can you carry on paying as normalm when presumably you are part of an interlocking IVA where you and your husband make one payment between you?

How much equity do you have in your property? I would not worry too much about the outcomes of this, as the majority of variations do get accepted by creditors, so long as they have been properly presented by the IP concerned.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[boychild]

Thanks for your reply. Our IVAs are seperate, and in the variation my husbands contibution would be reduce initially but extended for another year. My contribution would stay the same but would be extended for another year.

[MelanieGiles]

So why is yours being varied if you are capable of making the ongoing payments in any case?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[boychild]

They said its to make it more likely they accept my husbands variation? We had a few issues you see. Firstly one of our loans we forwarded as being £6000 purely by mistake, then after the IVA was accepted it turned out that hte actual figure owed was £11000 including the interest, so that creditor filed chapter 72 and are being really awkward because we never declared the proper amount in the first place. We were never asked to provide paperwork otherwise if we had then it would have been sorted out before the IVA was even accepted. That creditor are likely to reject the variation on the basis so we need our other creditors to accept. Also we have a joint loan as part of out mortgage which for some reason was only put on my husbands IVA and now theyve realised it should have been put onto mine too. So they suggested that mine is extended for 12 months to basically get all our creditors on board.

[MelanieGiles]

But your query related to what would happen if the variations were rejected - in which case your IP is saying you carry on as normal. This whole thing sounds a bit of a mess to be frank, but I clearly do not have the benefit of the full facts so I would stick with what your IP is telling you, as they too have to face the consequences of some of these errors in front of creditors.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[boychild]

Yes my query is about if the variation is rejected, but my concern is if my husbands is rejected. Mine wouldnt be an issue as i would carry on as normal, but my husbands states if the creditors reject his then they will issue a certificate of non compliance, and thats what im worried about, hence the questions about possible bankruptcy on his behalf.

[MelanieGiles]

I suggest that you cross that bridge if you have to. As I said earlier the majority of variations are actually accepted by creditors, and your IP will be on hand to advise in the unlikely event that it is not accepted.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp