hi there we are 2years into a 5 year IVa. In negative equity with our house. We are really struggling and not just financially but mentally too. Does anyone know if it would be better for us to go bancrupt and would my house be safe with no equity in it. Please advise as reaaly strugglin
Hi! I'm really sorry to hear you're struggling! If you have more than £20 disposable income you are likely to be asked to make payments for three years at a level similar to the iva. There can't be any guarantees on your house either. The best thing to do is review you I&E with your IP and see whether your payments need to be reduced.
Hi and welcome I am sorry to read you're struggling. do talk to your IP about reviewing your I&E as BOL suggests.
If you were to declre bankruptcy now, you would potentially have to pay into this for a further 3 years (dependant on disposable income), therefore as you've completed two years already it would be the same term then as your IVA.
Chat with them and see if they can assist in making things that little bit more manageable. x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
Have you had a deep look at your IVA proposal to see the comparison with bankruptcy. Your property belongs to the lender so will be safe as long as you keep up the payments and does not rise considerably over the next three years. Two years into an IVA seems to be about the time many fail, you have three years payments left for the IVA with a possible extension after that to be successfull, and a possible three years now to pay in bankruptcy should you elect to fail the IVA and go this route, however this is only if its affordable unlike an IVA you dont have to meet all payments for the bankruptcy to be successfull in dealing with your debts unlike an IVA it cannot fail which financially and mentally may make better sense for you, however this means discarding all you have paid in to date do you really want to do that got to be worth a word with the supervisor if he cannot give you some comfort, you may then feel you have no choice.
Bankruptcy may well be a better option so do have a chat with your IP, you may find that they can reduce your payments and help you. If not then consider bankruptcy
Amandadon sorry to hear you are struggling, there is times that it seems so hard during your IVA but you are almost half way there. Speak to your IP about your I&E and try not to worry, it will work out
I am no expert but as you are nearly half way through its worth having a chat and put your case forward with your IVA company If a bankruptcy is a further 3 years anyway you are not going to get free any quicker just shifting the goalposts
As the IVA is just that individual to you, what others can have or cant do is down to them What options are available to you will be down to your IVA company to decide I am sure you could take a 6 month break they seem to be a standard option when things are not working out well You can miss 2 payments in the 5 years so if you can agree to a 6 month bteak see how things are then start up again It will give you time to chill out save some money to get yourself ahead and also your IVA company will have time to arrange a better way to pay back maybe an extra year and lower payments is something that happens
I would try to work out what is the best way for you and then give them your option and see if they can come to an agreement that way
as long as they are getting some money from you over the time scale then its better than nothing
stay positive ok always ways and means
In my own experience, IVAs rarely fail due to affordability issues unless there is a change in circumstances which ought to be reported to creditors and a variation of terms arranged. The problem seems to lie with some firms encouraging clients to pay contributions which are too high from the outset - it is so important to make sure that you enter into affordable agreements rather than paying something you are told to - creditors have the right to do this, but even then you can still say no.
If you are at the 2 year point you are not far off half-way through, so they key thing to do as a priority is to get your income and expenditure reassessed and to be based on what you actually spend rather than what someone might tell you you are allowed to spend. Bankruptcy could well result in three years more payments, in which case that process might be unecessary.
