I am frantic! What can I do?

[guiness]

I am in the process of doing an IVA. My proposal has been signed and I am awaiting a meeting date with my creditors. Today I got a letter from the court saying that the northern rock were taking me to court for the amount that I owe them. They are aware that I am doing an IVA but say they are still proceeding with the court action because the IVA has not been finalised. I only have 14 days to respond to the court. I am frantic! What can I do?
I am still not really sure if bankrupcy would have been a better route for me. What happens if I cannot make the maintain the IVA payments? Do the creditors petition for bankrupcy? Do they then pay the court costs? What do I then have to provide the court with someone said I have to show them the last 12 mths bank statements is this true?

[MelanieGiles]

Hi guiness and welcome to the forum

What value of your overall debt do Northern Rock hold? If they are owed more than 25% of the total debt, then I am suprised that this is being put forward as an IVA, given their extremely high rejection rate at present. Are you a property owner?

What is happening with your IVA - the creditors meeting should have been called if you have sent your proposals back to your IP.

What advice were you given about bankruptcy proceedings by your IP as an option? If you are not a property owner, or have any assets which might be attacked under such proceedigng, perhaps this is a better option for you. What led you to choose an IVA in the first place?

If you are unable to maintain your payments under an IVA, and to be frank if there is any risk of this then you have picked the wrong solution, you will then be left with the option of bankruptcy proceedings. It is very unlikely that any of your creditors will petition, as they would rather pursue you outside of bankruptcy.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[guiness]

Hi, Melanie thanks for the reply. I owe in total about 40k and I owe Northern Rock£ £4600. I have to say that I'm not that impressed with the IVA company. The whole thing seems to have taken an awfully long time. They had the signed proposal for about 2 weeks and then contacted me to say that they had not recieved a mortgage statement ( Even though they had not actually asked for a one!)

I asked my IP about bankruptcy and they seemed to think I may lose my house. I have a mortgage of about82k and its valued at 100k. But its in joint names. The problem is I have a husband and 5 kids to support on my wage, (as my husband looks after the kids whilst I go out to work)and the thought of being homeless with 5 kids is a nightmare.

[MelanieGiles]

The IP should not be gathering up important information from you after he has finalised the proposals! How on earth does he get the mortgage figure correct if this is after the event.

Your house is definately at risk under bankruptcy proceedings, as your share of the equity is approximately £9,000. Would your partner be able to buy this from the Trustee?



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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[guiness]

Probably not as he would not be able to get a loan because he does not actually earn anything. the only way we could do it is if we added it on to the mortgage. Can you do this?

[guiness]

The other question is how safe is my home after the IVA finishes? In another five years I will have more equity. Could my creditors then make me re- mortgage to repay them futher money?

[Adam Davies]

Hi
It is very likely that you will have to remortgage in the fourth year and release equity to your creditors,but surely this has been explained to you by your IP?
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

[guiness]

No not really they have been rubbish!
It seems that I will probably be better off with bankruptcy. We either find the 9k to buy the equity now or pay it anyway in 4 years time and also 4 years of IVA payments which will leave us skint with no extra money for holidays, birthdays or christmas it will even be tight to cloth and feed the kids!!

I have signed my proposal, is it too late to change my mind and go for bankruptcy??

[MelanieGiles]

It is not too late, and you can pull out at any time leading up to the creditors meeting.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[guiness]

Thanks for all your replies.
How do I actually go about bankruptcy?

[Skippy]

First of all I would suggest that you contact your local county court to make sure that they deal with bankruptcies (mine didn't) and whether or not you have to make an appointment (mine had a walk in policy but most don't).

I completed the forms online at www.insolvency.gov.uk - you can complete them in your own time, amend any mistakes and then print them off when you are happy.

When you have your court date (and your £485 fee!) print off 3 copies of the forms (again check with the court, some want 3 copies, others don't), but don't sign them - you will do this in front of the clerk of the court.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[Sadsack]

Hi guiness

As you are in the process of setting your IVA, nothing has yet been signed,sealed and delivered, so you are quite within your rights to decide to not go with this IVA company. It seems that even though you have not yet entered into this arrangement with them, if I were you, I would pull out now as it is patently obvious you are not happy with them.

There are far better IP's on this forum who post daily advising all of us the best course of action - and they do it FOR NOTHING over and above the work that they do on a daily basis which is look after "paying" clients and they will give you the very best advice there is. I suggest you get in touch with one of them - one in particular has answered your queries and I would highly recommend her.

Good luck

Sue


Ho Hum! Think I'll bang my drum!

Read My Blog
http://sadsack.blogs.iva.co.uk/

[guiness]

Thanks Skippy.
I have one last question before I make my decision.

8 months ago I got some cash paid into my bank account from a credit card, which I used to buy a car for my husband. This was a temparary loan until he sold his current car. When he repaid me the cash I didn't pay it back off the credit card. When the court looks at my bank account staements and sees this will they make my husband sell his car (It is in his name)??

[Skippy]

Sorry, I'm not sure about that one - hopefully Melanie will be able to advise.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[MelanieGiles]

Yoru husband's car is likely to be safe guiness - worry no longer!

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk