I am losing sleep now with all the stress

[katy]

Hi there
Can someone please help me? I have an IVA which has been in place for two years now, I foolishly didn't include a fair amount of other debt that has now built up to a point where I cannot afford the monthly repayments and am defaulting on not only that but my IVA. Is there anything I can do, or is bankruptcy the only option? I think this would be the best option now but my husband isn't really keen.
I am losing sleep now with all the stress.
Any advice would be gratefully received.
Many Thanks

Katy

[iva_squirrel]

Hi katy,

If you don't mind asking you what other debt do you have? And how much do you owe?

Regards,
Michelle P.

[catullus]

Hello Katy

Unfortunately you've done what a surprisingly large number of people do by keeping creditors outside your IVA and you haven't done yourself any favours.

You'll probably already be aware that this is contrary to the provisions of IVA legislation (without informing creditors within your proposal) and it is highly unlikely that you could now succesfully look for a variation because in the eyes of your creditors you will have lost credibility.

bankruptcy is, therefore, a real possibilty for you and you should do some research on this to ensure that you understand it's implications for you.

One thing you need to establish is whether there is a bankrupcy clause in your IVA proposal and whether your Supervisor will have sufficient money (about £1500) to petition for your bankruptcy. This will help you understand, if you do need to go down the BKR route, whether your supervisor will petition for your bankrutcy or whether you'll need to file your own petition.

[katy]

Hi both, thanks for your replies. I'm not sure how much debt I have aside from my IVA probably under £10000 but I could be way out. I wasn't given the right advice regarding putting everything I owe into the IVA, the seriousness of the situation wasn't hammered home but I should have realised this myself.
I'm in a total mess now and not sure how to set the wheels in motion to start bankruptcy - ie do I start it or my supervisor. I feel so sorry for my husband, none of this is his fault and now i've ruined us with my stupidity. I've read so much information about bankruptcy and really think this is the best option for us but have no idea how to make my husband see this.

[catullus]

Well, from what you've said, it's only a nmatter of time before you lose control because if you're defaulting on both your IVA contributions and your other creditors one or other will catch up with you quickly.

You need to be proactive about this. If your husband thinks that the problem can be overcome then he needs to explain how that can be done quickly.

If he cannot then I suggest that you speak to your Supervisor and explain the situation to him/her. See my comment above about whether you would have to petition or whether it would be the supervisor.

[MelanieGiles]

Hi Katy

Is your Supervisor aware of the extent of your other debts, and how have you been servicing them throughout the IVA. It does appear that bankruptcy now may be the best way forward for you, given your misdeclaration of creditors, but take your own Supervisor's advice. It may be more beneficial to offer creditors the option of a variation or even a new IVA rather than bankruptcy, but I agree with Catallus that your credibility is seriously impaired and your Supervisor will have to really sell the commercial benefits of this to ensure any form of success.

What assets do you have which would be affected by bankruptcy proceedings, and who are the creditors which were left out of the original proposal. Also what dividend were you offering to the creditors who were included in the IVA?



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

[katy]

Right, well I have spoken to my husband about it and he now sees that BR is the only way forward. I really cannot see my supervisor being helpful in this as she's not particular understanding, I don't think, at the best of times. Had more demands through the post today so I need to take action now.
Melanie, the creditors are Barclays, capital one and some other catalogue based things. I foolishly thought I could cope with these but missed payments caused by harsh Council Tax and electricity bills equals over limit charges, missed payment charges etc etc and it just spirals. I must have missed about 4 or 5 IVA payments but they haven't done anything about it and I wish they would. They accepted 25p in the pound. The supervisor doesnt know of these other debts and we have absolutely no assets to lose.
Any ideas of what to say to my supervisor?

[MelanieGiles]

The best thing to do is tell her the truth, and see whether she required to petition for your bankruptcy under the terms of the arrangement. If this is the case, and she certainly has grounds if you are five months in arrears, then this will at least save you the Court filing fee and deposit.

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

[katy]

Thanks Melanie. I'm quite nervous about it now but i've been burying my head in the sand for so long now I have to be brave. It's my husband I feel sorry for, he trusted me with the finances and I let him down - big time! He doesn't deserve this.

[iva_squirrel]

Hi katy,

If you are no longer making payments towads your IVA your IP could petition for your bankruptcy as this may be the best solution for the escalating debt problem your are facing.

Regards,
Michelle P.

[MelanieGiles]

Then the best thing you can do for him is get this matter sorted as soon as possible. Bankruptcy proceedings are getting more and more relaxed, but you must expect to receive a Bankruptcy Restrictions Order which will delay your eventual discharge from bankruptcy as a result of your failure to declare the debts in the IVA.

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

[katy]

Hi Michelle, I am making the contribution but have missed a few payments, such as last months. Sould I not pay this months and force their hand so to speak?

[katy]

Then the best thing you can do for him is get this matter sorted as soon as possible. Bankruptcy proceedings are getting more and more relaxed, but you must expect to receive a Bankruptcy Restrictions Order which will delay your eventual discharge from bankruptcy as a result of your failure to declare the debts in the IVA.

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

I accept that and it's fair enough, I misled them so I will take what they throw at me.

[katy]

Ok, I have rang my supervisor and she was really nice and understanding and said it was probably the right thing to do. I need to write her a letter to confirm that's what I want to do and she will put the wheels in motion. I can't believe how painless it was, I guess the pain is still to come.
Thank you all for your help and advice, I will let you know how I get on and it will hopefully help others in a similar mess.