In IVA but considering Bancruptcy

[richard39]

Hello

I'm married and owed £40,000. Been in IVA nearly 10 months paying £320 per month.

I'm the only wage earner, receive working family tax credits and wife gets child benefit for 3 children. Youngest child is 6.

I could not afford xmas for the children and had to use 1 month Rent for our home £350 to help. I now have to pay this back.

I have been allowed an allowance for fuel. On 2 occasions I had to use this also to buy shoes for the kids and school uniforms.

It is becoming obvious to me that I cannot afford the IVA.

I keep thinking about bancruptcy.
The only thing stopping me is my car.
For the IVA it was valued at £3500.
I did a check on a price guide site and they said it would be about £3000 now.
Would I lose this car under bancruptcy.
I live about 8 miles from work and the same distance to our nearest town.

Also my wife has a credit card which a relative has been paying for her.
They are prepared to give her £500 one off payment and no more.
Her bill is about £1400.

Only myself would want to enter bancruptcy. How would it be worked out.
1. Just my wages
2. my wages and working family tax credit
3. my wages, working family tax credit and child benefit?

If I enter bancruptcy does it have to involve my wife?

When I entered an IVA I was not told my name would be included in the insolvency register, I am upset by this because I entered IVA thinking that no one would know about my situation.

All advice urgently requested please.
Thanks
Richard

[MelanieGiles]

What a shame your budget appears to have been set too tight Richard. Did you just miscalculate the figures, or was your IP or the creditors leading you to set allowances?

If you were to declare yourself bankrupt, your wages and tax credits would be taken into account, but you will be left with between 50% and 30% of your disposable income for yourselves. It is strange that bankruptcy almost becomes the easier option, and I would have thought that you would be able to keep the car.

As an alternative, why not ask your supervisor if there is any way the monthly payments could be lowered. This might mean having to hold a variation meeting.

[richard39]

Hello Melanie

I told the person who helped with the budget at the IP office.
They guided my figures to be honest. I was totally honest about all our outgoings even my wife's and they said they could help. The trouble is the budget they said would work seems to be impossible to me now.

If I enter bancruptcy does it have to involve my wife?

Richard

[MelanieGiles]

No - your wife can stay completely outside of those proceedings, but of course she will need to pay her credit card repayments.

[richard39]

Melanie

sorry to ask

I understand my wife would have to pay the credit card.

How does the OR decide what money is mine and what is my wife's?

Richard

[MelanieGiles]

Your money is your wages and a part of the working families tax credit, your wife will be able to keep her share of the tax credit and the child benefit.

[richard39]

Melanie

thanks for the advice

Is there any where I can find out what % would be my share of the working families tax credit?

Richard

[MelanieGiles]

No - that will down to the discretion of the individual examiner at the Official Receiver's office.

[richard39]

Thanks for your advice

much appreciated