Hi, sorry to read that your IVA is in danger of failing. One or two posters have experience of failed IVA's and I'm sure they'll be along at some point to share with your their experience. x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
hi melanie. we are having to move into rented accommodation as our house is no longer big enough for our family (we have 2 children, boy and girl living in a 2 bed home) i also need to be nearer to my mum as she is terminally ill. We can't afford to carry on paying the mortgage on the property and are struggling to afford the IVA repayments, so feel that we are going to have to fail the IVA. We wanted to try and sell the house but there is absolutely no equity in it anyway so not sure if there is any point. our IVA company have just suggested that we seek independant advise on the situation with the house and bankruptcy. What do you think?
"Everyone is a genius, but if you judge a fish by its ability to climb trees it'll go its whole life thinking it's stupid" Einstein x
I think that it makes sense to seek an alternative view - but this does not necessarily mean that the IVA has to fail. If you are intend on selling your property and moving into rented accomodation to look after your Mum, then good for you - family must always come first. Without a property at risk under bankruptcy proceedings, you might find that this gives you the very best fresh start, without the burden of an unaffordable IVA which keeps you awake each night worrying about your finances.
Sorry Melanie I dont think i was very clear. We are already in the process of moving into rented accommodation. we had a private tenant set up to move into our property but this has fallen through. So we wont be able to pay the mortgage anymore and with the new rent we are will struggle to keep up to the IVA. We just feel that bankruptcy is the better option but we cant afford the fees!!!!
"Everyone is a genius, but if you judge a fish by its ability to climb trees it'll go its whole life thinking it's stupid" Einstein x
This is a real problem for people to access the bankruptcy process, and until you have saved up the money to meet the Court costs and deposit there is nothing more you can do. Do you have any friends of family who could help out with the costs? If not, then I am afraid it is a waiting game, but there seems little point in continuing to pay a mortgage if your property is ultimately going to be sold - so that may save you a few pounds towards the bankrutpcy costs over the next month or so.
So Mel would your advise be to just tell the mortgage company we dont live here anymore, cant afford to pay the mortgage payments, let the IVA fail and then declare bankruptcy??? Because that's the plan!
"Everyone is a genius, but if you judge a fish by its ability to climb trees it'll go its whole life thinking it's stupid" Einstein x
I cannot give you specific advice sorry. My best advice has to be to seek support and guidance from your own IP. You appointed them to act for you, and they should continue to do this even if the IVA is at risk from failure.
Thanks Mel. They are being good but suggesting we get independent advice but like you say - I want their advice!
I have been reading some bankruptcy guidance notes and I am a bit concerned about what would happen to our bank account. It says that all accounts are frozen! So how would we carry on paying our direct debits, rent etc??
"Everyone is a genius, but if you judge a fish by its ability to climb trees it'll go its whole life thinking it's stupid" Einstein x
Bank accounts are always temporarily frozen once a bankruptcy order is made - however if they are just usual chequing accounts with no significant balances are held beyond that which is needed, and the bank is happy to retain you as a customer, they will generally be unfrozen either on the day of the bankruptcy order or very soon afterwards.
Yes - the mortgagee has the option to commence possession proceedings as soon as you have missed more than three mortgage payments, so this may well commence before the IVA has been concluded. An IVA cannot affect the rights of secured creditors.
I want the house gone and the debt gone. Its just so scary. Im shaking and have got knots in my tummy!! I don't want to feel like im letting anyone down.[:(]
"Everyone is a genius, but if you judge a fish by its ability to climb trees it'll go its whole life thinking it's stupid" Einstein x
