Please could someone give me advise regarding IVA versus Bankruptcy. My situation is that my Oh and myself are awaiting a date for a creditors meeting with an expected payment of £288 a month if the IVA is accepted, but what worries us is that our surplus income is entirely from my husbands DLA.If he was to lose this then our IVA would fail and BR would be our only option. Would the DLA be classed as income if we were to go down the BR route? At the moment we have used all but £20 of his DLA as income for the purpose of the IVA even though he gets full mobility allowance, otherwise we would not have any surplus. This scares the hell out of us because we usually put it aside for when my husband is unable to work due to his disability and then use it for lost income, he is very independant and wont give up working and go on benefits,this income acts as a cushion for us when we most need it. He is also very dependant on his car for mobility reasons so hence we have high fuel costs. We have a property which cccs have calculated to have about £28000 neg equity using the 85% rule so BR may be a better option. Please help!
HI and welcome to the forum. Unfortunately, I do not know anything about DLA but am sure someone else will be around soon to comment. Did you take more than one opinion when deciding on an IVA?
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
Is there any reason why your husband would lose his DLA? If he has the higher rate mobility for a car then this would be safe - we have a motability car.
I would speak to a few firms before making a decision. Visit www.iva.com for a list of companies and reviews. Give one or two a ring for some free and impartial advice.
Can I be nosy and ask what your husbands disability is?
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Given the amount of negative equity perhaps bankruptcy may be a better option to allow you to re start your lives financially. Its not an easy option or a cop out but would be done and dusted quicker than an IVA would. Make a few calls to see what advice you are given but worry about your health rather than money.
Bankruptcy will affect your credit rating as would an IVA and neither has the stigma that it used to have,many people have debt they cannot repay for numerous reasons.
Not to be age-ist but can I ask your ages also,just roughly??
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
The only problem with BR is that the OR will keep hold of the property for two years and three months regardless of the negative equity - just in case the housing market picks up.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Hi Kallis, thanks for your reply (Catherine.7). my husband had a bike accident 11 yrs ago and almost lost his left leg as it was so badly smashed, he has had 15 operations on his leg, hip and pelvis and now his leg is shorter, he was off work for almost 2 years but his employers were great making the transition easier for him. Took us 7 yrs to get DLA so we are always aware that it can be taken away especially with benefit changes. As we already had a car we dont use the mobility aspect for a car but for the running cost, fuel, taxis and as explained for income when my OH has to take time off work.OH is 47 i'm 44 both always worked. Maybe BR may be the best option.
miss prim, so sorry to hear about your hubby's problems. Sounds as though he will always get DLA. My hubby has ischaemic heart disease, unstable angina and COPD and has the higher rate mobility component of the DLA and that is for an indefinite period.
We have the motability car and it is fantastic - nothing to pay other than fuel.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Very interesting post you mention the CCCS, I presume you have spoken with them, is this the organisation which prompted you to consider an IVA if not what was their response to your situation, did they explain to you how DLA fits in an Income Payments Order in Bankruptcy?
Hi Catherine - why don't you take a second opinion from one of the firms at www.iva.com. They are all recommended. Your concerns are utterly reasonable and I would urge you to go with the debt solution that suits your situation best. If it's BR, then so be it. You must both be very brave to have gone through all that yu have and your husbands health is the important thing here xx
Thanks for all your relies, really think we need to speak to another IP and soon as our meeting has now been set for the 21st April.Feels good to know that there is always advice and a shoulder only a click away xx
No they have not exlpained anything about the DLA fitting intp BR,I also receive Industrial Injuries Disablement Benefit for Asthma and thats also been included as income for the IVA. Not sure why both benefits have been considered.
They don't save the DLA though - they spend it on fuel etc.
I do agree though that another opinion may help.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
