feeling low

[nanasue]

Hubby and I entered IVA officially in May this year. Reasons not important now except to say that all went down hill August last year when hubby had heart attack, and I had to stay home to be constant carer. Feeling pretty low, and alone and seems a long road ahead. Constantly watching budget, almost on daily basis. Feel like body and soul sold to the devil, but can say X Debt (our IVA company) were extremely helpful although it was difficult for us to have to enter IVA, expect a lot of others felt the same way. Am truly amazed at number of people in the same situation.

Just wish I could feel more hopeful about the present and the future. 5 years of paying our monthly amount is hard for us, my hubby being pensioner and us never knowing really if or when another heart attack will happen. I know others alot worse off than us, sorry to sound selfish, but as all who are in similar situation know it can get to you at times. Feeling everything a bit too much to handle just now, not normally the case.

[The Major]

Can you advise how you are managing to fund this IVA was all options discussed with you including bankruptcy

[nanasue]

Major, thank you for your response. As far as possible all options were discussed when entering IVA. The funding for this comes from my husband's weekly pension credits and 4 weekly DLA. There are no other payments coming in. Hence the almost daily check on our balance/incoming/outgoing. We were worried that it might be hard to pay the monthly agreed amount and we are struggling with it, although early days yet. One thing that did puzzle us was the information from a second company informing us we had to run a debt management programme application, alongside the IVA application. We paid one off fee for debt management programme before IVA was approved. We were led to believe this was normal practice.

Bankruptcy was considered, but we were worried about losing everything if we went into that.

[The Major]

Thank you for that I will comment on the debt management later, however what do you think you will lose if you go bankrupt?

[MrsKnight]

Hi Nanasue & a warm welcome to the forum from me.

Im sorry to hear about your husband & his health problems & the difficulties you have had.

I am reading this correctly you have just entered into an IVA & are already struggling, an IVA might not be the right solution for you.
Bankruptcy is not as "bad" as it used to be & most dont "lose" everything.
There are members on the forum more experienced than me in the matter.

An IVA is supposed to be affordable & your payments are supposed to be set at a manageable level. Entering an IVA is always difficult at the start, but if your already struggling it you need to get further advise.
And this forum is the best place to get it.

Can I ask whom you are with for your IVA again? And it sounds as though you were passed from a debt management company to an IVA company & paid a fee for doing so. It does happen though its not always the case.

Keep posting there will be others along to help.

[nanasue]

The Major and MrsKnight

Thank you both for your responses and warm welcome. Our IVA is with a company called X-Debt in Manchester. Although MrsKnight you say people don't lose evrything when applying for bankruptcy, I worry it may be the case. We have very little of any value apart from the usual T.V 2 laptops and a few items of collectables we hope to hand down to our grandchildren to give them something to remember us by. There is nothing else we can do for them. There is also our only means of transport, costly as it is to run we do need it and cannot afford to relinquish it or change to a smaller vehicle. We both feel tightly bound by the IVA, and are trying to accept our situation along with hundreds of others like us. But it is a struggle and money is very tight. I am not making excuses, but cant help wondering how long we will manage to pay our monthly amount without hitting real difficulties. Our only income comes from my husband's weekly benefit for incapacity and pension credits. Plus 4 weekly payment of DLA which is for an indefinite period. We are not high flying spenders and never have been, in fact we havent had a holiday of any kind for over 10 years now. What money has been spent out in the past, has been to help my husband's son keep a roof over his head and help him to have full custody of our beloved grandson now almost 2 years old. This was the biggest strain on us financially, and emotionally...which eventually led to my husband having his heart attack. Not to mention the strasin on our marriage. Well enough of my moaning, am sorry but not a day goes by without my feeling lost and tearful. However, it is good to feel others are there to help and I am grateful.

[MrsKnight]

Hi Nanasue,

What a terrible time you have had & you dont need to justify the reasons you got into debt, though letting it all out can be helpful too.
Starting an IVA is hard & trying to adjust to an IVA life in this first year is very difficult. BUT an IVA should be affordable & not a "punishment". A successful IVA is completed with a reasonable affordable Income & Expenditure, without this an IVA is most likely to fail & you would be back to square one with your creditors.
Are you managing to save allowances for the Cars MOT & repairs? Have you got a Contingency fund for things going wrong in the home?
Have you thought about contacting you IVA firms IP & discussing your difficulties with them? Its a firm Ive not heard of before - but the experts on the forum may have more knowledge.

[The Major]

Hello Nanasue

Thank you for the reply I am presuming you do not own your property as you would have said so

First I think you have not been given the best advice, many on here will tell you to speak with your IP if you are having problems. You can speak with your IP as long as you remember you are paying him thousands of pounds to administer your IVA. Your debt managment payment running along side your IVA is a common occurence its usually called taking a commision thats why Pay Plan are possible one of the better providers of IVAs

Please as soon as you can visit the Citizens Advice Bureau with your IVA to get independant advice. I can tell you that in bankruptcy you will not lose any of your possessions no-one will even call at your home. I can also tell you that as your income in benefit based you will not have to make any payments to the creditors or anyone else following bankruptcy if you elect that course. Your bankruptcy will last 12 months at the most and you will be rehabilitated to enjoy the rest of your life and these days its not often in the press Your husband will pay £450 for the bankruptcy you will possible have to pay £600 but the CAB will advise on that, you can save the fees from what you are paying in this arrangement

I think it is a disgrace that X Debt has signed you up in one of these schemes however it is very easy to get out of it

[kallis3]

Speak to your IP in the first intance, but it does sound as though BR could be the best way forward. You could start again with a clean sheet.

[nanasue]

Thank you all for the wonderful response. I have taken all advice on board and will act upon it asap. It is so good to know we are not alone in this situation and for that I am very grateful. Thank you again.

[kallis3]

We're always here for you for support and advice.

Let us know how you get on.

[nanasue]

I do have some questions before I proceed with the idea of bankruptcy...if someone can advise please. If bankruptcy is applied for would the monthly payments we are now making for IVA stop immediately? How long does the bankruptcy process usually take from application? And lastly, when would the fees for bankruptcy have to be paid? Hope someone can help if only in general. Thank you.

[kallis3]

Hi nanasue,

If you were to seriously consider BR then you should stop your IVA payments and let it fail. This usually happens after three months.

BR fees are £600 per person, although if you are in receipt of certain benefits then this can be reduced. Forms can be filled in online via this link:

https://www.insolvencydirect.gov.uk/isolv/

Timescales depend upon your local court and when your IVA fails. You pay the fees on the day.

[Jan01]

Hi Nanasue are you getting all the benefits you are entited to? the CAB and Age Concern have benefit advisers that can help you. If you think you may be entitled apply the worst answer you can get back is NO.

I hope you get some peace soon and you and your husband can have a worry free life.

Jan

[The Major]

If you are to do this stop the next payment straight away the CAB will advise on anything else you need Good Luck