ADVICE REALLY NEEDED

[flashingblade]

Hi all

We are in an IVA, but struggling so we are considering bankruptcy.
we pay £297 a month into IVA to be increased in August to £357, and we have nothing left. Our clothing allowance and contingency fund gets swallowed up by something else, and we are desperate. We are 6 months into our IVA.

Our debts in the IVA are approx 30k, and we have a secured debt of 16k on the house. Our house is worth around 65k, and we have a mortgage of 41k.

Does anyone feel that bankruptcy is the next option for us, and if so how is our secured loan paid off, do they wait til the house is sold etc?

We really need some impartial advice, i cant see us coping for 4.5 years, and i already have depression and anxiety problems which have been exacerbated by our debt stress.

Desperate [:(]

[flashingblade]

Also, as there is little equity in the house after the secured loan, could we keep the house, and the secured debt and just include the unsecured debt (our IVA) in the bankruptcy???

[BlueShoes]

Hi Flashingblade
We are just in the process of (hopefully) setting up an IVA, and I read posts like yours and wonder how tough it is going to be. I am trying to reassure myself by saying "five years will fly by" but I suspect if the going is too tough they will seem like 500 years!
Whilst we are committed to repaying as much debt as we can afford, we are also realistic that if the creditors want to impose modifications which we feel are not realistic, then we will be left with no option but to consider bankruptcy.
We have little equity in our house, and a relative would secure the BI so we would probably not lose it, but it is such a traumatic time waiting for things to be finalised and then proposed, that we feel emotionally wrecked. I know worrying doesn't help anyone, but try telling that to my psyche!
Thanks to this brilliant forum, we feel like we are really well informed, and will be able to make a considered decision in spite of our emotions!
Blue

[aguise]

Hi flashingblade and blueshoes
I too am wondering why so many seem to be struggling, though it is not easy, to me it is easier than trying to pay debts we just hadnt got enough for. Our monthly payment is much less than we paid in minimum payments, so surely everyone should find life a little easier than struggling. Is it accepting expenditure that is too low, or creditors asking for more, or is it that in the iva there is no credit whereas before it was providing the extras that people didnt realise. I am so much happier abd the more I read the forum the more I am gettting bothered. If there are others happy like ,me please say so, that way the forum shows both sides.
Flashingblade talk to your company and tell them the probs , if we were really struggling I too would be looking to bankrupcy or seriously considering it, life shouldnt be easy but shouldnt be intolerable.

All the best Ang

[BlueShoes]

Ang
Thanks for that; if our proposed IVA figures are agreed then we too will be paying out less to the creditors than previously when we were paying minimum payments and the debt was increasing due to interest charges. I think the difference is that now we have admitted the problem; whereas previously we would use credit when things were tight, we are now very aware that credit is not an option. Budgeting for the expected has never really been a big issue for us, it has been the unexpected which has been the big factor in the debt accumulating. (Plus a few poor choices along the way!)
We really want the IVA to ba a success, but are dreading the fact the proposal might not be accepted and so forcing us down the bankruptcy route.
We have a great IP putting together our proposal, and feel that if anyone can succeed on our behalf then they can, but until the meeting it is just a waiting game.
Blue

[aguise]

Hi again
Thanks blueshoes, be positive, either way you will deal with it and be ok.
Flashingblade was your expenditure unrealistic or were your payments pushed up by creditors. Before we went for the iva the last credit I used was for a weekly shop in desperation, as just had an op and was off sick, but we had not used any for months previous and had just about kept up with payments through the overtime, so anything less than that struggle was much better.

Ang

[MelanieGiles]

We need to bottle up Ang's advice and send a little bottle to each person thinking of entering into an IVA. This lady represents the 80% majority of IVA cases which quietly run their course correctly, without increased payments, and with little bother. Of course the majority of these people, who are enjoying a respected and professional relationship with their IP and their staff, are not requiring the support of an IVA forum, and therefore we generally only hear the bad stories.

I have handled over 1000 cases in my career, and can honestly say that I have failed less than 30 due to clients not been able to maintain their payments. This is largely due to careful research of a clients circumstances, and us generally ensuring that clients can afford to maintain their payments. Over the last 15 years, I have seen many changing attitudes in the creditor marketplance, seen the advent of mass advertising and IVA factories, and creditors getting tougher with regard to their acceptance criteria. An IVA is still an excellent way of repaying debt, if this is important to you and you can afford the payments. I would not let anyone go into an IVA that I did not feel could afford the payments, and that is why I have a very minimal drop off. There are lots of other practitioners with similar success records.

Flashingblade, when I first started posting on this forum you were so pleased that your IVA had been accepted, and it is sad to read your posts now. if your income and expenditure was not properly thought through in the beginning, and you cannot afford the payments, I suggest that bankruptcy is a better option for you. Do remember that you tried!

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[lily]

I am so sorry to read your post flashing blade, I too remember you from your first post. At the end of the day, even tho we all made our mistakes here, we have to live and your creditors do not deserve the cost of your health. I feel for anyone in this position who is genuinely trying. OK so we borrowed money but how can these people ever know the true cost of debt in terms of stress and impact on family and health.after the rollacoaster ride of getting it all accepted in the first place. Is money owed really worth more than someones health??? It really should be taken into consideration by all concerned, especially with modifications

really sorry flashing blade and hope for the best for you.

lily

[Phil]

Flashing blade Ifeel for you and I can only give advice of my own circumstances but if at all possible cut your expenditure in areas to help boost other areas of your expenditure.Iknow this is easier send than done but in my case admitidly only 3 months in to my iva the chance to contol your finances again is fantastic.Like said above before the iva the minimum payments were cripling and no future,in the iva 5 years(long time)but a distant light to debt freedom.Everybodys circomstances are different and bankruptcy may be the way foreward but either way think to yourself that you are doing something about and stopping the rot

[louiseh]

I have only just had my IVA approved, so I can't comment on long term affordability and unforseen costs but I do know that all through the process I have said that I wouldn't be forced into an IVA I couldn't afford and Bankruptcy would be my only option. 5 years is a long time, we had been struggling for years with increasing payments through interest charges, and I know I couldn't face another 5 years worrying this time about paying my IVA. I know it's a hard journey reaching the creditors meeting mine took 5 months, at times I did think that maybe I'd agree to anything just to get it through. I held firm though and argued my expenditure as I have to live with it. Time will tell, I am confident that (barring disastors) I cn maintain this for 5 years.

[BlueShoes]

Hi Melanie
I am not surprised that your reputation is so well regarded when you are able to quote only 30 failed IVAs out of 1000+.
Blue

[scaredkez]

flashingblade so sorry to hear that you are having difficulties with your iva, wishing you the best and hope you can sort something soon, it must be a horrible feeling, when you know how relieved you are when it is accepted, thinking of you, and good luck in which ever way you have to go.
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/