IVA defaulted - here comes BR

[TheDerbyRam]

Hi.i am still awaiting my default notices from my IP which i'm going to use to complete the online forms and go BR.I wish i had done this to begin with, instead of wasting a year of IVA payments at £600 per month.My IP advises me that some of the money will go to the creditors..bet it's not much.Anyway, i wondered if anyone knows how long after the BR/OR action does an IPA begin?
.I expect to be paying in the region of £400 per month for 3 years..time will tell i suppose.With the £485 at the start of August i am hoping it will start a month later or am i being to optimistic ?
Any advice/experience is appreciated greatly!
Thanks

[scaredkez]

hi derby it takes a couple of months to get the IPA up and running, you may find that you don't have to pay as much as you think also, you don't have to live at the bare minimum, they allow realistic living expenses in the hope you remain solvent, have you worked out your I+E yet if you look on skippies blog she has the table of percentages of how they work out what they take from you.
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[TheDerbyRam]

Thanks for that advice.I am living with my parents now and have no idea what will be acceptable for my I & E calculation really.My monthly net is £1130, pay £220 for staying there but also pay for food and travelling costs.So hard to come up with figures in this situation.Just hope they dont want proof from my parents as they are unaware i am going BR and want it to stay that way.
Reasonable figures?
Board - £220
Food - £100
Bus/Train - £ 120
Medical - £10
Holiday/Entertainment/Social - £80
Mobile - £10

Leaves £ 590 surplus
60% of that (usual figure used ?) = £ 354

Am i a million miles off ?
Maybe i'm being too generous to myself or to mean..i really don't know ! LOL Guess that's why im in a mess..got to learn some serious lessons about money /debt.

[MelanieGiles]

If you are showing a surplus income of £590 - including £80 for holidays and social expenditure, why are you struggling to pay £600 to your IVA? I do not think that you will be granted a bankruptcy order in these circumstances - please explain your reasoning here? The Court also has to act in your creditors interests as well.

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

[TheDerbyRam]

Melanie...i was ok in the IVA but got behind due to various reasons..mainly gambling on the internet..like an idiot !
My IP has suggested i may want to try an re-start it for another 60 months...do you think it is realistic ? Where do i go if my IVA is rejected ..are you saying that i can't go bankrupt because of my surplus income..if so perhaps i should be renting a cheap flat ?

[MelanieGiles]

I think it would be difficult for a judge to make a bankruptcy order, when you have an existing IVA and are showing disposable income at a similar level. Getting your own flat would certainly reduce that dispoable income, and this is a decision you must take for the future.

How many payments are you behind with your IVA, and is is not just more sensible to try to vary it to take account of the arrears? How did you manage to gamble on the internet with no sources of credit? i would not look at restarting it but I would definately explore the option of varying. What does your own IP say about this?

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

[TheDerbyRam]

I'm incredibly 9 months benhind with my IVA..and i have asked for a amendment to add on 9 months..but they have refused.It's easy to use a Solo Natwest card on gambling sites..wish til my dying day that it wasn't
I am so confused..are u saying a judge can't bankrupt me and i can't get an IVA (if thats the case)..where does that leave me ?

[MelanieGiles]

No I am not saying that a judge can't bankrupt you - merely that they will look at your case and probably wonder why your Supervisor is not at least trying to vary the arrangement by giving your creditors the opportunity to give you a second chance.

What dividend were you returning under the original IVA? And can you list out the creditors for me. if you had the option of proposing a second IVA, is this something that you would consider?

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

[TheDerbyRam]

Thanks Melanie.My debts are over 100K ! A large number of creditors..mainly credit cards and bank.No HSBC or Northern Rock thankfully.Largest creditor is Lloyds TSB.I was paying to creditors around 25p (after IP fees taken out)
I would definitely consider an new IVA..as they have refused to arrange any variation in the first year.I'd love to start again,painful though it would be.My IP suggests i wait " 2 or 3 weeks then contact them again" to apply for a new IVA.Maybe i should come to your company ?

[MelanieGiles]

If your are unhappy with the service provided by your current IP, then it would be wise to look for someone else to represent you. We would be happy to look at your case, and advise you as to the options available.

Your own IP will need to bring the first IVA to a conclusion before you can make a second application, and do be really sure this time that it is the route you want, and that you can be disciplined to manage the repayments. Your creditors will have to be informed of the reasons for your first IVA failing, so it will not be easy second time around.

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

[thebear29uk]

Hi

Once again I find it amazing that somebody taking home £1130 per month and not a property owner can be allowed to get over £100K of credit.

As always I accept that we don't have to spend the money but surely there should be checks in place to highlight when somebody is dangerously over-stretched with credit.

Regards

Dave

[TheDerbyRam]

To the BEAR !
I don't appreciate your comments thank you very much.This is a forum and we have problems/interest in debt matters but your comments are neither helpful or constructive.All they have done is add to me bad feelings..thank you VERY MUCH !
If you don't have anything helpful to say may i ask you keep your sanctimonious opinions to yourself !
Do us all a favour and leave the forum and don't bother coming back.

[aguise]

Hi Derby Ram
Please dont shout at me, but I dont think Dave meant any offence to you personally, I think he was saying that the creditors are irresponsible for giving the credit and not seeing that it would cause problems for you.

Ang

[thebear29uk]

TheDerbyRam

I'm truly sorry if you have misinterpreted my comments but I was definitely not having a go at you.

My point was, as Ang says, that the creditors should never have allowed you that amount of credit if there were more stringent means testing of people's ability to repay their debts.

I have been a member of this forum since last October and in all that time I have never openly attacked another member for their situation. I may have been critical where somebody else is attacking another member but by and large I post here to offer moral support to people in the same position as myself.
I would be the last person to judge others given my own situation which is debts of over £90K with nothing much to show for it.

I wish you well with your situation and hope once again you will accept my apologies for any upset I caused you and my assurances that it was never intended that way.

Regards

Dave

[PoorbutHappy]

Can always complain to the banks about misapproriate lending. I got 4K bank from Lloyds coz they gave us loans we couldn't actually afford! Not much really but made me feel much better. Never actually saw any of it though.

Bless em!