I'm nearly a year into our IVA, my husbands self-employed business isn't doing well, to be honest we've really struggled with the payments since the IVA started, Norther Rock's fault who said my husband could afford more! After serious thought for the last week we are now thinking of bankruptcy and just wondered what the best way to do this would be. Should we stop our standing order enabling it to fail for 3 months so we can save the £1200 needed to go BR? We have hardly any surplus money each month so i don't think a variation meeting would be an option. I e-mailed Payplan on another matter a week ago and still havent had a reply so thought rather than try contacting them again i would ask on the forum. Sorry for rambling on, any views would be appreciated.
If you are seriously considering BR then I would miss your next three payments to save up the fees.
Surprised they have not been back in touch. I emailed them last weekend and got a reply on Monday morning.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Sorry to hear about your problems Mandi. I assume that if you are struggling with your IVA then your husband has not been putting money aside to meet his HMRC obligations. If you have no surplus you should cease paying as it is only putting off the inevitable.
There is no need to use a bankruptcy advice comapny as this would add a couple of thousand to your bill and delay the bankruptcy while you pay their fees. Your IP should be able to assist for free especially since Payplan are one of the so called 'debt charities' funded by the banks.
Thanks for your replies, much appreciated. No, hubby hasn't saved anything towards his tax, thats another worry, will this still have to be paid if we are made BR?
I've just rang Payplan and the lady i spoke to was really nice, she told me to cancel my standing order straight away and also she thinks the bankruptcy charges will be able to be taken out of the money we've put into the IVA in the last year. We have our annual review next week so will discuss everything then. I feel like a big weight has been lifted - even though theres a long way to go.
Have a good chat at your annual review Mandi as you say and hopefully a way forward can be found even if this is bankruptcy from what I understand it's relatively easy these days and I hope your future is much brighter. x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
I'm with Payplan and it specifically states in our chairmans report that funds will not be available for BR. I would check to see what yours says.
After twelve months, the majority of money that you have paid across will probably have gone on fees.
Once you have cancelled your standing order, save this money for the BR fees as I think you are going to have to fund it yourself.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I would be very suprised with an IVA which is only a year old if there were a requirement to retain funds to meet the costs of bankruptcy - however if HMRC had an influencing vote this is one of the provisions that they insist on, so it could have been modified in for you.
