Hi, just looking for some advice. We're 2yrs into our IVA but due to our low income (hubby became self employed recently and as yet isnt generating any income) we've just had a 6 month payment break. We had our I+E review recently too when our case officer suggested that we could possibly do with a further payment break of upto 6 months while we give the business a chance to grow, but she had to put this to our supervisor. He has now come back and said he wont permit a meeting with our creditors and our IVA must continue as agreed otherwise it will fail. We are paying £300 between us to the IVA, but keeping up with this will be impossible as this will leave us with only £96 a month to provide food, heat, electric, petrol. Apparently the repayments can't be lowered as we haven't enough surplus income!?? I'm really worried and don't know whats next for us. Bankruptcy might be our only option but we're scared of losing our home and car. There is no equity in the house and our car is only worth approx 3500k. Appreciate any advice. thanks
I don't think you can lose your home under bankruptcy if there is no equity. It seems mean of your IP not to go back to your Creditor's though!!I'm not an expert on these things so hopefully one will be along shortly to advise you. Good luck x
It's unlikely thst you would lose your vehicle either if you go bankrupt. When you initially commenced your IVA, was your husband in full time employment and earning more than he does now as a self employed person?
The reason I ask is because if that was the case, then in theory you've placed yourselves in a worse position financially voluntarily andit raises the question as to why you did it and was your IP aware at the outset of the IVA that these were what your intentions were?
For a start it is your right to be able to vary the terms of an IVA - and not the decision of your supervisor. That is the decision of creditors to ultimately make at a variation creditors meeting.
In my experience a car of £3,500 might be grabbed by a Trustee in bankruptcy, although you would be given an allowance to purchase a cheaper vehicle.
Notwithstanding these thoughts, if your income pattern has now changed for the worse, you could just be delaying the inevitable if you can see no way of resuming payments even with a further 6 months payment break. I suggest you arrange to have a chat directly with your IP to see why he has taken such a hard line in your case.
Hi guys, appreciate your replies! Just to explain further....we were only a month into our IVA when my husband was paid off from his full time employment and since then he's been in and out of employment on temporary contracts. Becoming self employed was something we considered for a while but never thought the time was right but as any work he was getting was only temp we finally decided to bite the bullet and do it. He's only been doing it since last may so its still early days but its slowly heading in the right direction. Payplan have been kept in the loop and have been great up to now, I just don't understand why they can't seem to help us out at the moment.
With regards to the BR option,we live in NI, just wondering if there is anyone on here with experience of BR in NI as I believe there are some differences in BR here and in Mainland UK.
Also we're waiting on response from PPI's and was maybe considering if we got anything worthwhile maybe we could ask our parents to chip in to help fund a full and final. Altho does anyone have any idea what we would need to offer as a F&F on a 25k debt?
Again thanks eveyone for your replies! All advice welcome!
Hi. For a full and final, assuming the creditors agree there is / will be no equity to come from the house, you will need to base the offer on your current monthly payment x the number of months left. The amount of PPI refunded will have little bearing, unless it brings you near to cleaing the whole of the original debt plus fees.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
We are also based in N Ireland and would be happy to help you too should you require. However, I agree with Melanie that you should speak directly to your IP and try and salvage the IVA before you look at bankruptcy.
I am very sorry that I am just picking this post up, I have been out of the office for a few days. Have you discussed all of your options with your case officer? If you would like to email me directly, I can look into your case for you and see what other options may be available to you.
Many Thanks
Gemma
Payplan Representative
Payplan offer a range of solutions including IVAs and free DMPs. To find out more and to contact us please visit www.payplan.com
Hi guys! Thanks again for your replies and advice. We have arranged to speak with our case officer again tomorrow afternoon to discuss our possible options, so hopefully we'll have a better idea of what we're doing. Great to know you guys are around if we need help!!
Thanks again!
