getting really worried, any ideas?

[housewife]

hi me and my husband entered a joint iva about 9 months ago i have since had another baby and after my maternity i have been made redundant and am not intending to find another job as with two young children it is not worth paying childcare but not sure what will happen with iva as it was calculated with two wages? any ideas? getting really worried


lisa siddons

[iva_squirrel]

Good morning and welcome to the forum.

When considering an IVA, it is necessary to have a stable income that will last for the duration of the IVA, typically five years.

It is important to keep up payments as serious defaults can result in the failure of the IVA and may lead to bankruptcy.

However, there could be any number of reasons which can cause a reduction of income affecting your ability to keep up payments. Examples include new children, redundancy and relationship breakdowns.

You need to contact your IP immediately A revised income and expenditure schedule will be requested, based on the change in circumstances. If necessary, the Supervisor will call a further meeting of creditors to request a change to the original payment plan.


Kind regards,


Julia Simavi

Shortlisted with special commendation for Debt Counsellor of the Year by Credit Today Awards 2007

View my profile:
http://www.supersonicsquirrel.net/julia ... rofile.asp

Visit my website:
http://www.supersonicsquirrel.net

Credit Today Awards 2007 http://www.credittoday.co.uk/awards/winners.htm

[keh]

Morning Lisa

Clarify one thing please

You said you was made redundant
was this due to you having you second child?

If that is true then your employers are breaking the law and cannot make you redundant but offer you the option of your job back or working part time


Keith

The long and winding road will straighten out eventually....keep the faith

[Oliver]

You need to contact your IP about this change in circumstance. As you have been made redundant through no fault of your own this won't necessarily stop you from carrying on with your IVA. However, this change in circumstances will result in you needing to complete a new income and expenditure report which can asses the viability of you continuing the IVA.

Best Regards
Oliver

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

[finebridge]

Hi,

I am sorry to learn of your situation. Are you still able to make the full payments into your arrangement? You will most certainly need to contact your IP firm and discuss this further.

Kind Regards

Nicola


Finebridge Ltd
22 Laud Street, Croydon, CR0 1SU
0800 180 4212
www.finebridge.co.uk

[Adam Davies]

Hi
Have a look into tax credits as these should increase as your joint income has reduced.Then work out how much you will need the IVA payments to reduce by and speak with your IP asap.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[housewife]

hi thanks for all the advise,its great to find this site and realise not the only ones to go through this! i have spoke to ip and done nwe income and exp form but it does not leave much! my total debt is 25,000 and i started to pay £42 a month and then had a 6 month payment break as was on unpaid maternity leave. was made redundant due to company closure! and now worried that if theres not much money left at end of month they will say we can not carry on with iva and make us bankrupt, can they do this and if they do would this be printed in local paper?

lisa siddons

[Adam Davies]

Hi
They can make you bankrupt if the IVA fails and it will be in the local paper.However as you have only been in it 9 months with a six month break I doubt that they will have the money set aside to start bankruptcy proceedings.It is more likely that you will just be back to square one with your original debts.
How much do you feel that you can realistically afford each month ?
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[housewife]

i think its works out at about £65 a moth untill we finish of the car repayments next year then it will be about £175?!

lisa siddons

[Adam Davies]

Hi lisa
I don,t think that an IVA is going to work for you on those figures.How do you feel about bankruptcy and do you own your house ?
regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[Oliver]

I think that could be a challenge in getting your creditors to agree to such a low payment. You could enter into an informal plan if your IVA is a no goer. If you don't have any assets you fear losing such as a house then bankruptcy might be the best option for you although you are right in saying that this will mean your name being published in the paper.


Best Regards
Oliver

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

[housewife]

i dont really know much about bankruptcy,how much it costs is it a one off payment ? im worried about this route as both our parents would be VERY unhappy about this as they know nothing about our situation and we feel we cant tell them as they have helped us out before and warned us to never get into trouble again!

lisa siddons

[Oliver]

I think there are many people on this forum who will sympathise with your worries but at the same time I think you will find that many people who had the same concerns as you came out better on the other side after admitting to their families about their debt problems.

As for bankruptcy, it will cost you c£500 to petition your own bankruptcy.


Best Regards
Oliver

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

[housewife]

so is it £500 and thats it or do you have to pay some off your debt back as well, telling our parents is not an option! how does it effect your future ie mortgage ?we dont have one at the moment but do have a car on hp would this be effected?

lisa siddons

[Oliver]

The fee covers the admin charge. You will likely be discharged from the bankruptcy within 12 months but may have to make payments to your creditors for a period of three years. These payments are based only on what you can afford. You will be allowed to keep the car HP agreement if the OR deems this to be a reasonable expense. If not you may have to give this car up and buy a cheaper one.

Best Regards
Oliver

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