if an iva was not accepted ?

[depressed]

hi if an iva is'nt accepted what happens ? we owe 180,000 between us and we are offering around 40p in the £ after selling our property then going into rented accomadation ,
our mortgage is very low around £125 per month but when we move our rent will be a lot more plus my husband is self employed so we won't have very much at all left each month ,this is why we wanted to offer the full and final ( lump sum )payment instead of monthly repayments .
we will need carpets etc for the rented place and i have another baby due in 7 weeks all expense at such a bad time of year ,we will need things for the new baby and the girls will need furniture for their rooms as we are in a tiny house at the moment and the girls sleep in with us ,its crazy ,we can't manage like this anymore anyway .such a worry !!!
back to my original question after all my going on ....if our lump sum iva is not accepted is this an option ?.....
most of the debt is in my name ,if we devided our equity equally between us could i use my half towards paying my creditors and go bankrupt so as not to affect my husband at all ? and could he keep his half of the equity to pay off the majority of his debts and then continue with a dmp until his debts were paid ? i know this is'nt looking on the bright side of things i just worry as most of the debt is my fault and he loves working for himself and i'd hate to jeopadise his business ,its only a very small business but we will have 3 children to provide for and we are prepared to offer the equity in our home through an iva as i say start again in rented accomadation .
any advise would be greatly appreciated ,i've always worried over things that may never happen but i just need to know my options as i've been in a dmp for 3 yrs and to be honest its a waste of time ,interest is added all the time ,court threats etc ,its making me really ill with worry . christmas has been horrible ,i really hope the creditors will accept our iva offer .
i was so happy to hear of the recent ivas accepted over the christmas period ,i know i don't know any of you but i was so happy for you ,good luck for the future and keep your fingers crossed for me ,i'm still in the early stages gathering information etc requested by my ip ,but hopefully things will be okay .

[catullus]

Personally I think that this is the best type of IVA offer that is possible, ie agreeing to sell now to realise immediate equity for creditors and then make income contributions if rent levels allow.

Most creditors would accept this type of offer, without hesitation. As to splitting the property, it's probably already owned 50/50 so there's not much you can do here other than hope that your IVA offer is succesful.

[Adam Davies]

Hi
The ultimate scarifice is to sell your family home and move into rented,your creditors can't really ask for much more than that,can they ?
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[depressed]

thankyou for your response i just worry constantly ,i suppose i will do until our iva is accepted ,we won't be able to guarentee monthly contributions as well as rent we would'nt be able to afford to do that ,thats why we want to offer full and final ,its like now my husband has no work for 2-3 months due to the type of work he does and as he's self employed we can't say what the years ahead hold for us ,so we can't say we can afford a set amount each month !!! just hope the iva is accepted ,thankyou again for your advice : )

[janot]

Hi Depressed

Have you choosen your IP yet? that was one of the things i think helped our IVA go so smothly, the advise we have received on this site and from our IP have been fantastic.

Good luck with everything you are really going to be busy, with the new baby and the house move, please let us know the date for your IVA and the outcome.

janot

[depressed]

hi janot yes i'm going with mccambridge duffy as i've been told they specialize in ivas for self employed ,just sorted out loads of paperwork ready to send off tomorrow ,i'll keep you updated ,thanks for your reply .

[MelanieGiles]

Make sure that they arrange a face to face meeting with you, as this is a statory requirement under current insolvency best practice. This is really important, as self-employed cases are far more complex and it is essential that you are properly advised before going into an IVA.

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

[depressed]

hi ,is there anything i should know regarding self employed ivas ? getting worried again now !! i have got copies of all of the required book work ,bank statements etc ,and as i say we really want to offer our equity of £40p in the £1 as a lump sum ,once we rent we won't have much left at all ,plus i have the baby due anytime ,i'm in such a worry over everything . thankyou for your advise .

[MelanieGiles]

You will need to prepare forward trading projections to accompany your proposal, and these should be in line with your most recent accounts unless there has been a change of circumstances with regard to the business.

There are also strange tax provisions relating to IVAs, which your IP will need to discuss with you and possibly with your accountants. No doubt when then arrange the face to face meeting with you, this will be discussed.

And the key thing to bear in mind is that when you are self-employed, you generally suffer from peaks and troughs in trading. When I am doing self-employed IVAs, and we do a lot of these in my practice, we always build in more flexibility for the payment of contributions that we would in a salary based IVA.

Bear in mind that your IP will want to see copies of your accounts each year, to check the level of profits and drawings to ensure that maximum contributions are being made to creditors.

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