IVA with Payplan-again

[jc4]

Hi, I was posting last week about this. I need some answers because my husband keeps asking me questions which I can't answer and we are arguing a lot. I can see what is going to happen to us (as a couple) and I will do anything in my power to stop that.

We are both on IVAs but are struggling with the payments after only four months. If we end the IVAs does that mean automatic bankruptcy?

Before our creditors' meeting in July, we had to have the house valued. There was not much equity and the IVA proposals originally had us as paying just over £3000 each at tne end of the IVA. However, although mine is the same, my husband's was modified to make him have the house valued again in the fourth year and give his maximum equity. Also, he has to get offers of a remortgage and send them to Payplan. What we can't understand is, how can he get a remortgage, obviously increasing our current mortgage payment, and be expected to pay the IVA payments aswell, and then have to borrow my £3000 aswell?

My husband is now saying that we might aswell just give the house up now rather than wait until the IVA is over. I would be prepared to go bankrupt myself but I don't want him to as he has a two year old car which he is really fond of and as it is worth £5000 he would have to lose it. I know a car might seem a trivial thing compared to the house but I just want my husband to be happy and I don't want him to leave me.

I feel like running away.

[Adam Davies]

Hi
No you do not automaticaly go bankrupt if your IVA fails,normally you will have the option to agree a debt repayment plan with your creditors or bankrupt yourself.
Any equity release and subsequent increased mortgage payments will mean that your monthly IVA payment will reduce by this amount or cease.
Regards

Andy Davie
IVA.co.uk Spokesperson

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

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

[jc4]

Thankyou for your help. Would there be any way in which my husband would be able to keep his car if we went bankrupt? It is possible we may be able to keep the house if my son, who lives with us, agrees to buy the equity, which I think is about £10000.

[MelanieGiles]

Your husband will not be allowed to keep a car of that value in bankruptcy. Are there any family members who could help out with a lump sum to enable him to keep it?

I also think that you have misunderstood the creditors requirements re the equity in the IVA. He will not have to raise the £3,000 as well as the equity sum, and his IVA payments will cease once the new mortgage has been effected.

Read through the IVA modifications again carefully, and ask your IP to explain them to you again if you remain unsure.

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