12 months into mt IVA and my review has been done.
I now need to pay £384 instead of the previous £340.
They are also needing payment of £1,636.84 because i had a wage rise 8 months ago and didnt declare it (my fault, i didnt read the small print [:(!]).
I simply dont have this sort of money.
I live with parents, so am not a homeowner, i own 2 vehicles, probably worth £3000 each.
should i file for bankrupcy, will they take one or both vehicles off me? what else will it involve?
Hi Simon, you need to think carefully about bankrupcy but it could be an option for you with so little assets. An expert will be along soon to advice but I understand that you are allowed a single vehicle but they may put a cap on the cost (e.g. £1500). Therefore you will definately have to sell one. The other you may be able to negotiate.
If you can afford the new monthly payment going forward, one option may be to extend your IVA by 6 months to cover your arrears.
I agree with Phil, I would make sure that bankruptcy is the way to go for you. You have made a mistake, but it's nothing that can't be put right.
Speak to your IP and ask that the money you owe be spread across other payments (at an affordable rate).
If you declare BR your record will be shot for a further six years and you will have to let your IVA fail by missing three payments before you can do that.
You would not be allowed to keep two vehicles, and if they are worth the money you say they are, you would probably be expected to sell them both, buy a cheap runaround and pay the rest across to bankruptcy.
Have a word with your IP first.
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
Who is your IP? An additional 3 to 6 months should be added onto the end to cover shortfall. Did your original proposal include the fact that you had two vehicles? wht do you need to keep two vehichles?
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
Got my draft proposal through yesterday. Had a look through - not really sure what I should be checking for... Made me nervous all over again. So I just need to call them Monday and then go from there I guess... how are you doing ?
Make sure you are totally happy with what is in the proposal. If there is anything on there you're not sure about, you can always ask on here and if we can answer, we will.
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
Stop worrying sparklywatcher as what it says is perfectly clear and achievable and should be acceptable to your creditors. If you need any clarification speak to me Monday morning (Cheryl off until Tuesday).
Last edited by David Mond on Sun May 10, 2009 10:18 am, edited 1 time in total.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
Thanks Jan, one thing I did wonder is the amount owing to creditors, as I know the amount I owe to Lloyds is going up by the day - thanks to my automated message.. do I need to change the amount owed... because the amount will keep increasing?
The list is based on estimated figures as at a date as shown so does not need to be changed. It will be the amount due as at the date of the creditors meeting and thereafter the Supervisor asks for final claims which are then checked.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
Just ensure you are comfortable with the I&E and realistically think you can manage on that over the next 5 years. It is not in your or the creditors interest for it to be unrealistic.
Scan you bank statements and consider everything that you have paid out over the last year or so. I think my proposal is just about managable but obviously I have no provision for the up keep of the house. So carpets, decorating, external renovations, new beds, etc will all need changing at the end of the IVA. I have had to cancel my golf membership, my gym membership (so expect to see me running through the streets). I also plan to give up alcohol to save money. So perhaps I will healthier.[:p]
Just in limbo at the moment Em, I think not knowing is worse than being told. But Weds will be here soon and I will be either celebrating or starting again (but down the bankrupcy route).
Last edited by mole on Sun May 10, 2009 10:32 am, edited 1 time in total.
Phil, I am sure David will do his best for you on Wednesday - you have one of the best in the business and I'm sure he won't let you down.
Emily - David would not be putting forward a proposal he did not think was best for you and your creditors, but give him a ring tomorrow as suggested just to put your mind at rest.
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
