HM Forces IVA/Bankruptcy

[The Stones]

This is a duplicate posting because I posted it in the wrong forum earlier!

Hello and can I first say what a great site!

here goes.

First Q I have is, If you are in the HM Forces, what happens if you delare bankruptcy? Do you lose your job etc. I have tried to find out but it doesn't seem clear cut to me.

We are 18months into our IVA but it just doesn't seem to work for us. We were told that our outgoings can not rise by more than 10%, but already petrol prices have increased by more than that since we took out this agreement.
We really really struggle.
We have only had one face to face meeting with the IP and we weren't told at the first meet how exact we had to be re our outgoings, so a lot of things we gave 'best guess'. So with things not being accurate we have ended up being out of pocket 'big time'.
Also we asked what would happen if something like a big vets bill came up what would we do? we were told not to worry, so we didn't. Low and behold we got a big bill 12 months later.
We were nver told that they would take every last disposable penny we have. (We have struggled far more in this IVA than before the IVA)to cut a long story short, we have put forward a new I & E form to show our true outgoings, not missing a thing, but our IP is not happy. But it's above the 10% margin. We feel the best thing for us to do is declare ourselves BR.(Bearing in mind HM Forces) I know we could probably change the IVA company, but we don't want to start another 5 yrs of another IVA. Please, does anybody have any advice?

It's Xmas soon and we can not afford to buy our child a present, why should he suffer for our mistakes, I can't even afford to buy a PC game for him, what do I tell a child who still believes in Santa and is very well behaved, that Santa probably won't bring him a gift. My heart is breaking, arrggghhhh!
THANK YOU for reading this!

[MelanieGiles]

Hi there

I saw your post and was working my way towards it - have had a really busy day so just catching up now!

Depending upon the Arm or Service you are in, the type of job you do, and your rank, will depend upon how harshly bankruptcy proceedings may be viewed - but I can tell you times are a-changing in HMF and their attitude is relaxing as more and more servicemen and women resort to unsecured borrowings simply to supplement relatively low wages. (Political statement over!)

How ridiculous to be told that your expenditure cannot increase by more than 10%. Where does that come from? Expenditure rises with the cost of living, and factors outside of our control. You really must dig in with your IP on this - and arrange another face to face meeting to expain your situation. Ultimately you can take this matter to Court and get a judge to rule on the level of your expenditure, and personally if I were you I would rather face a judge on something sensible like this, than face a judge to ask him to make you bankrupt. If you threaten your IP with this, they may just behave a little more reasonably.

You cannot really change your IP company once the IVA has been accepted, so work with these guys and show them you are not prepared to live on the breadline for the next four years. You have to have lives, especially in the stressful environment you all find yourself working at the moment.

And do try e-bay for Xmas gifts. I swear by it, and you can get some really cheap deals. If your child is still young, they are not terribly materialistic at that age, and as long as he has a loving Mum and Dad, and a warm, welcome home, what more would he need. These things will return for you, so do not put your career in jeopardy for the next couple of years. When all of this is over, you can spend as much as you like on him and put all of this behind you.

Good luck and let us know how you get on.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[The Stones]

Hi and thanks. I really appreciate you taking the time to respond so quickly.

My husband is a Sgt in the RAF working as a aircraft technician. His 22 yrs is up early 2008, but has literally just signed back on again last week.

Re the 10%, our IP is Grant Thornton. We were told that this 10% is standard practise and it is in our IVA's. We are not very happy with GT at the moment, as you've probably gathered.

Having read some of your postings Melanie, the HM Forces people need flexible IVA's, and ours just isn't.

I have spoken to them this afternoon and had a good rant, he then said he would look at a 'variation'. This is after more than 6 months of telling them we are struggling.

Re not being able to change IP's mid IVA, may I ask why not? Is it because you are not allowed or because it's too much hassle.

It's a shame we didn't know about this site and your good self last year!!!

[MelanieGiles]

Hi there

Grant Thornton are one of the best companies you can get, and I feel that your IP (Mark Allen or Gareth Neill?) would be keen to understand the difficulties you are facing in keeping within rigid guidelines. Why not try and contact the IP directly to discuss this issue.

It is strange that you cannot change IPs, and the more I read posts on this board the more I feel that this option should be allowed under legislation, but I do not feel that it will in the near future if ever. Statute only really allows for this if the IP retires, dies, or leaves the employ of a certain firm, and the matter is therefore largely outside of your control, as it is effectively the creditors who appoint the IP and not you.

Although you are stressed out, the fact that they are now talking variations for you is encouraging. Trust me, that firm are really good and I do suggest that you try and speak to the IP if you get no joy from the ground crew. If I had to recommend another IP to someone, if for reasons of conflict I could not act, I would have no hesitation in recommending Grant Thornton.

With 22 years service in the bag, and a gratuity at the end of it to preserve, bankruptcy is not something I would be considering if I were you, but keep posting on the forum if you need any more advice. We are here to try and help.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[The Stones]

Ok Melanie. Thanks again.

Mark Allen is the man, and wow you know your people!!

I did request to speak With M Allen, but 'they' keep telling me he's very busy and they can deal.

On the whole GT's are a great company, it's just the 'ground crew' who don't seem to communicate well or listen to our worries, despite sending various emails (all documented, or course). I will chase up and I will keep you informed. I have lots of reading to do, it's such a well informed site.
Thank you very very much.

[MelanieGiles]

You could always try e-mailing him directly - use the "Find an IP" link on the Insolvency Service website, and type in his surname. If you use a delivery and read receipt at least you will know that he has read your post, but personally I would leave it with the variations team at the moment, and don't be afraid to chase them for a progress report once a week.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[The Stones]

I will take a look now.
You are an absolute star. I won't take up any more of your precious time this eve, but thank you so much for giving me/us the advise that is so hard to find.