Desperation over.. Thank you all for your advise

[oba]

I started an IVA in 2004, and became a single mother in 2005, I have been duly making my payments, but I am now struggle to make the payment (not missed any). Was paying initially paying £540, but now really scrapping the barrell to pay £330. I have asked to consider bankruptcy which I have refused and now maybe looking at debt management plan. Any bright ideas. I am desperate

[Adam Davies]

Hi
You must speak with your IP and discuss your situation.You have done well to keep ontop of your payments and your IP should look at ways to make sure that your IVA is successful.They could ask for a further variation order and reduce your payments or they could look at extending your IVA for a period of time alongside lower payments.
A debt management plan is an option ,if your IP is unable to help, but you will then not enjoy the protection offered by an IVA in terms of further creditor action.
Bankruptcy is also an option as you say.
Speak to your IP
Regards

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

[freelili]

Hello OBA

I just wanted to pick up on one of the points you made, about refusal of BR. You have the right to do this yourself and the company can only refuse to do this for you. If you have no assets it may well be the best route to end this stress for you.
Good luck

LILY

I asked God for a solution and have to live with his reply.

[Oliver]

Lilly is right, no one but the Court can refuse your Bankruptcy petition.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[oba]

Thank you very much for the advise, I have gone down the route of dmp becos I don't want to go the bankruptcy route. I asked my IP if it was possible to extend the IVA for maybe a year or two and they said no becos it would not be cost effective, which i found very strange

[Oliver]

On what basis is it not cost effective? How much did you suggest that you can afford to pay into the IVA each month, still £330?!!!

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[MelanieGiles]

It is not your IP's decision Oba - that is the right of your creditors. If you want to make an alternative offer of settlement to your creditors, through the existing IVA that is you right and you should instruct your IP accordingly. He will then issue your revised proposals to creditors and call another meeting where they will vote.

Find out why your IP says an extension will not be cost effective, and can you let us know how much your total debts are and the level of fees being charged by the IP.

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

[oba]

One of the reasons why my IP did not want to extend the IVA was becos, paying £330 was really putting me on a very tight budget with nothing for contingency and with a baby, it was too risky (which I do appreciate). So asked if I could pay £280 and then they can extend it a year or two, which she said taking their administrative cost into account that was not enough and I think the total debt was about £70K

I only found myself in this situation becos I helped my siblings with their university fee with the understanding they will pay me back, and they did not bother (family who needs them)

[Oliver]

I see. It is importnant to have a realistic budget in place otherwise you will find that your IVA soon fails anyway.

May I ask why you are so reluctant to go bankrupt? Do you own a property? If so how much equity is there?



Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[oba]

Hello I don't own a home or anything, I am just worried about my employer finding out about me being bankruptcy and any future implications. I don't work in finance or anything just in administration. After reading stuff on the net, it looks as if it the worse option. I am open to suggestion

[MelanieGiles]

Hi again

If you feel that you can afford £280 per month, and wish to see the IVA continuing, it is your right to put forward a proposal to your creditors. Can you let me know how much you owe to creditors and how much has already been paid into the IVA, together with details of the dividend you were initially offering to creditors. I can then assess whether I think there is a realistic chance of acceptance.

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

[Oliver]

Bankruptcy won't necessarily have an impact on your administrative job. I would recommend that you discuss the impact of any possible bankruptcy with your HR department or someone you trust at work. Bankruptcy does seem to still have a certain stigma attached to it but in reality there really shouldn't be as bankruptcy status really isn't that different from an IVA. There are also many old wives tales about horrible things that happen in bankruptcy such as having to give an account of yourself from the dock in court, or having big horrible men come and take your household goods, these tales are simply NOT true. Many people who have been through the bankruptcy process post on this forum so hopefully someone will be around shortly to post a first hand account of their bankruptcy experiences. In my opinion you should strongly consider bankruptcy, you have no property to lose, although I do agree with you that it is vitally important to investigate the impact of bankruptcy on your current employment (of which I would guess there would be none), bankruptcy could be the best solution to your individual debt problem.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[Skippy]

Hi oba, as Oliver says, BR is nothing to be frightened of, and if you have no assets may be the best way forward. I went BR at the end of March and it was much less daunting than I thought it would be. I completed my paperwork online and attended the court (some courts are appointment only, others are first come first served) and it was done. When I got to court the clerk read through my paperwork, I swore on the bible and then she took my money and I went upstairs to wait to see the judge. I didn't have to go into court, I saw him in chambers and he went through the implications of BR with me and then signed the petition. As of 10.15am on 29th March 2007 I was bankrupt. I then had to wait for the BR order to be drawn up, and I was back at work by 11.30.

I had my interview with the Official Receiver on 10th April, and even that wasn't as bad as I thought it would be. I was allowed to keep my car (I need it for work) and as I have no other assets it was a short call. As I have disposable income I am subject to an IPA (Income Payments Order) and I will be paying £186 per month, as opposed to £459 in my IVA.

I am not trying to influence you either way oba, but I just wanted to let you know it's not as bad as you might think. There is more information about my experiences in my blog.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[scaredkez]

hi there when i met with my OR last week they said i didn;t need to inform my employer as my job was not classed in any of the categories that you have to, however i had already told him and he has been very supportive and talks a lot to me about my situation, ok i only work for a small practice and i have only told 3 of them there and they have all been supportive, BR is not as bad as you think, my judge congratulated me when i went BR (read my blog) i was so surprised he knew i had done everything possible to try and repay my debt, so dont worry if you have to go down that route.
kerri

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

[oba]

Thank you very much, BR is already looking more appealling, honestly I have not spoken to anyone about this apart from my IP who was not much help. I read the small print of my dmp and it will taking me 32years (@ £220 per month) to pay everything off with no guaranttee of the interest being frozen, which is defeating the purpose of getting out of debt anyway and giving my baby a secure future. I am at my wits end here. So much information anybody I can speak with to help PLEASE!!