Failed iva part 2

[yaffy36]

Hi,
I failed my iva approx 8 months ago and have only received 1 contact from my creditors, I realise that this is because they will be gaining interest with this.I am at a loss now because I have heard that my only option now would be bancruptcy, I am scared to do this because bancruptcy would inevitably lead to the loss of my house, I have a young family and would hate to do this to them. obviously I would not be able to buy another house .Ido not have the option of a friend or family member who could buy the equity in my house to avoid this.It feels at the minute me and my partner are not leading a normal live with all this going on , please let me know if there is any other options other than bancruptcy.

Thanks

Simon

[zoe]

Hi Simon
I am not an expert but have you spoke to any companies about a Debt management plan?
Zoe

[yaffy36]

I was initially in one, is this not the same as a iva, Idon't feel many companies would touch me now, with my failed iva.

[PeeBee71]

An IVA is a binding agreement between debtor and creditors with a defined repayment scheme and final settlement figure. Interest is frozen.

A DMP is an informal agreement that either party can drop out of at any time, there is no settlement figure as such, you pay until the debts are repaid, interest may be frozen, but it is at the discretion of the creditor.

How much equity, if any, do you have in your property? And how does that figure compare with your debt?

[yaffy36]

Hi roughly 15,000 in equity in the house and 50,000 in debt.

[Adam Davies]

Yaffee36
Its not unusual to start a debt management plan after a failed IVA.You need to contact all your creditors and find out how much they are owed and see if you can make arrangements to pay amounts based on your disposible income.
Another option is to sell up and offer a full and final settlement to all your creditors.
Can you say why you failed the IVA ?

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

[yaffy36]

Hi Andy,there would be no way made I would able to pay the settlement values or I would not be in this position in the first place, if I arranged to pay my creditors would they always waver the interest, one of the reasons I originally got into debt was a gambling addiction which I am pleased to say I no longer have.Although I am now picking the pieces up years later from my actions.

[yaffy36]

Andy if Iarranged payments with my creditors with no interest added is this then known as a dmp.

[MelanieGiles]

If you enter a Debt Management Programme, you will have none of the advantages your IVA gave you. So creditors may or may not waive interest, and at any time they can commence legal proceedings against you. You will carry on paying until the debts are repaid in full, which is often much longer than the five years of and IVA.

How much do you owe, and how much are you planning on paying to your creditors each month?

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

[Adam Davies]

Yaffy36
If you enter into an informal agreement to repay your creditors then it is a debt management plan but it would be unusual to get them to stop interest.
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

[iva experts]

Hi Yaffy36,

I’m not sure an informal payment plan is right for you, as this agreement is usually suitable for those who have a relatively low amount of unsecured debt.

Unless of course you have a high disposable income, what is your disposable income amount?

To see how long it will take you to pay off your debt through an informal payment plan, divide the total amount of debt that you have by you monthly disposable income. This will give you a good idea of your payment period in months then divide this by 12 to get a yearly figure.

Just keep in mind if you are facing repaying your debt over 5 years+ your motivation to maintain the repayments will be low.

Hope this information is of use

Regards. IVA Experts

[yaffy36]

Hi I roughly owe 50,000 and would only able to pay 200pounds a month in total to all my creditors.

[iva experts]

Thanks for the extra information.

I don’t mean to scare you but with the disposable income you have (£200), if you went through an informal payment plan your debt would be repaid in 21 years.

I think bankruptcy should be considered. May I ask why your IVA failed? Was this because you missed some payments?

Hope this information is of use

Regards. IVA Experts