Hi Everyone,
Myself and my partner have received some really bad news today. My husband is highly likely to be dissmissed from his job due to gross misconduct. We have been in an iva for 2 and a half years and he is the main earner. Due to him being dissmissed it is going to be very hard for him to get a new job, let alone one anywhere near the same money he is on now. I am quite happy to go back to work full time, but again will not be able to earn any where near his wages. The main problem we have is that we rent our house - we actually had to move for him to take this job - and we will not be able to afford the rent. We are tied in to a contract until May 2009 and we know that they are likely to want all of the rent until then if they cannot find new tenants. We are very lucky in that my parents have just moved abroad and are in a position to rent us their house cheaply until we are back on our feet. We would like to try and keep the iva going, but what would happen with any rent we owe? Would we be better off going bankrupt? We are off to citizen's advice tomorrow to see what they say. Any advice would be greatly appreciated. Sorry for the essay[:I]
Jo
Your situation is difficult and I feel for you. I would seriously consider BR if I was in your position and just start again. Thats only my opinion though, sounds like youre going to have enough to deal with. Could your landlord not get new tenants before the contract is up if you tell them you can no longer afford to live there? With all that said, it really depends on how long your IVA has to run and if its worth trying to muddle through until the end. Everyones circumstances are different, so it would be best to talk through all of your options and variables with an expert.
Thanks Lily. I'm a bit worried that the landlord won't be able to get new tenants. There are two houses on our street that have been empty for a few weeks as no tenants can be found. It's not like we live in a bad area either. That's why I think we may have to go bankrupt if we move to my parents, because we just won't be able to pay the remainding rent , rent to my parents, bills and the iva! It's just such a shame as if we move it's out of the area again and means moving the kids schools for the second time in a year. I like your little quote in your signature btw it worked for us a minute ago!!
I know its got to be really hard hun, especially with the children but I see it like this. If you can move into your parents home, it takes the extra rent out of the stress eqaution. I am sure if you incur any problems with contractual rent arrears you can put them into the BR. IVA is a thing of the past, you can get a fresh start. If your children are older which makes it more difficult for them to move, can they travel?
Glad the quote worked for you, noone can take away your love or your family, those are the priceless things in life, everything else can be replaced.
Hi again Lily, that's the only problem I see with bankruptcy, it will add on another year with an IPA and also I'll have another six years on the insolvency register! I would love to be able to move and keep on with the iva. I think I just have to accept the fact that we will probably have to move. I think it's just a case of in what circumstances!
I agree about family. I'm not really too bothered what life throws at us cos if we stick together and get on with it it will work out in the end.
I think the worst thing to do would be stick our heads in the sand and try to ignore it!
Thanks so much for your advice. x
Jo
Hey Jojo, I'm so sorry to hear about your hubby's job, I hope it doesn't come to that. If it does, I think you are prepared. Talk to your landlord, he may come up with a plan or he may release you from the lease if he can find someone else. Good luck. X
Thanks Viki,
I don't hold out much hope with the landlord though! It's managed by a letting agent and I don't think they're going to be very sympathetic! I'm hoping they can find someone else, but the last time I moved in May, so hubby could start new job, our old letting agent charged us for the checkout inventory and all sorts just to release us from the lease. And they had found good tenents to replace us.
Hi Jojo, I'm really sorry to hear about hubby's job and good luck with get things sorted out.
Just one thing, you wouldn't have another 6 years on the insolvency register - your credit rating would be shot for another 6 years from the date of your BR, but your name comes off the register 3 months after your discharge date. This is normally one year from the date you are made BR, although it could be less.
So sorry to hear the news - but first things first is he going to appeal the decision, are there mitigating factors which have led to this, and does he have a union or ACAS to take advice from.
With regard to the IVA - it would make sense to alert to your IP to this now, and keep them informed of future developments.
Hi Skippy and Melanie, thanks for your replies. Melanie there is definately no hope with the job. It is being classed as gross misconduct and he will almost certainly be dissmissed.
The funny thing is we thought we were going to be able to increase our iva payments as I got a new job and have just sent off all the revised I & E etc to the IP!! Now I have to call and explain this!!
Don't worry, as these things do happen, and there is bound to be a solution at the end of the day. At the moment your husband needs to know that you love him, support him and are there for him, so plenty of hugs and deal with the problem together. All will seem better in a couple of weeks.
Thanks again Melanie!
But oh my god!! In the last 15 minutes we've just come up with a load of questions and worries!! I'm going to be at citizens advice 1st thing after I've dropped kids at school!!
Do we stay and keep paying rent as hubbies last pay check will be end of month!
What about bills?
When do we tell landlord? What do we tell him? Do we move to parents as soon as poss??
How do we pay B/R fees?
How can we pay for removals??
It's a nightmare!
Sometimes life throws mega stones at us and it turns us round and we just dont know which way to turn. All you can do is stick all the factors, pros and cons into a pot and decide what your best option/s is/are. Just remember one thing and one day at a time or you will not cope with it. Whatever happens you will find a way through and still be a family.
Take a look at Skppy's BR blog, especially the income and expenditure, there is also the calculation for a possible IPA.
I dont know the law on things regarding contractual rent etc. Once you decide if youre going BR or trying to keep the IVA these things might become clearer. My reasoning is that if you cant afford to live there move out ASAP, at least then youre trying not to incurr more costs.
I do feel for you hun, a few difficult weeks ahead and I wish you the very best. Do keep posting for support and advice and to let us know how youre getting on.
My fellow IP, Sue Clay, has a great saying, deal with things in "bite sized chunks". And Paul Johns of Reviva talks a lot about "putting your ducks in a row". What they mean is break up the issues concerned that you have to deal with, and place in order of priority.
I would think that a roof over your heads is the most important thing to deal with at the moment, so removal costs are pretty high up therm, landlord problems are tricky, but if you go bankrupt then they will fall to be dealt with as a claim in those proceedings.
Personally I would relocate first, then look to declare yourselves bankrupt. If you cannot afford the fees to do that, write to creditors and explain to them what has happened and that you cannot meet any of your repayments until your husband finds alternative employment.
