Hi we are due to start an IVA around the end of the month. Our creditors meeting is the 24/3.
After much thought we think that it will be better if we file for BR.
We owe about £22000 and would end up paying about £17000 back with payments starting at £180pm then after 3 month going to £280 and after 10 month increasing to £320 until the five years are up.
We dont own our house we rent from council and both our jobs will be fine. We dont drive either so dont have to worry about a car being taken. Also we dont own any items of real value.
Due to medical problems my wife is in and out of work on a regular basis and it seems like its going to be a lot of stress.
Can I ask we know we have to pay for our BR fees which will be about £1000 but do I have to tell our IVA company of our intension. We are planning on missing the second IVA payment to help pay towards our BR. I know this may sound imorall but over the years we have prob payed out more than we owe and its now really starting to effect my wifes health.
Thanks.
Also do you recive any discount to the BR fees if our income is low. I recieve about £14000 a year and my wife will prob be getting £240 per month sick benefit. We also recieve tax credits.
Thanks again.
Mick
Last edited by mick1972a on Sun Mar 08, 2009 2:39 pm, edited 1 time in total.
If your income is going to be unsteady, it does sound as though BR could be a good option for you.
If you are going to do this, I wouldn't go ahead with the creditors meeting. If you did, and it was accepted, you would have to miss three payments to let it fail. If you cancel the meeting, you can start sorting your BR straightaway.
There are certain benefits which qualify for a reduction in the fees, but I don't know which ones they are.
You can read up about BR and fill the forms in online at this site:
If you have any questions, we'll do our best to answer them.
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
Thanks Kallis, could I not just go ahead and file for BR a month or so into the IVA. We need the time to save up the money and are not sure if we could keep the creditors of our back for the couple of months we would need.
Unfortunately not. As Jan says if your IVA is accepted you would then need to miss 3 payments to fail it to allow you to go BR - you now need proof that the IVA has failed before you can petition for BR. It's also a waste of your IP's time to be honest.
You might find that you have to wait a couple of months anyway before you can get an appointment at the court - some of them now have quite a wait.
It would be a waste of everyone's time if you went for an IVA now rather than just hang on a couple of months and then go bankrupt.
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
Ok thanks, is it worth while not telling the IVA company until a week before the criditors meeting that I no longer want to continue with the IVA and intend going BR to keep creditors off back.
Also do I just fill in BR forms and hand them into court with payment or do I have to make an appointment to make payment.
I would let the ip firm know right away that you intend to go BR,no point messing them around. As for creditors they wouldnt necessaryily stop chaisng just coz an IVA is being proposed.
Good luck.
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
I would cancel the meeting now. It probably won't make a lot of difference with your creditors as the majority of them keep ringing even when informed of a date for the meeting.
You will need to speak to your local court to see how long it will be before you can get an appointment for a hearing. Some of them are quite quick, but you need to check.
You take the forms and the fees with you on the date of the hearing.
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 tell your IVA company as soon as possible to be honest. I know it's hard dealing with the creditors, but if I were you I wouldn't answer the phone - you could even change your number if necessary.
You will need to ring your local court and find out if you need to make an appointment. Most courts have an appointment system, and some courts have long waiting lists. You can complete the forms online, but you must not sign them until you are at the court. You will make the payment on the same day that you petition for BR at court.
Why did you decide on an IVA in the first place? Or were you given that option as the most appropriate advice on you circumstances?
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 for information purposes, it is possible to file for bankruptcy whilst in an IVA without the IVA being being failed and terminated. I know this because it is what I did at the beginning of February.
I had been in an IVA for just over a year, my circumstances had changed dramatically during that time and I had been on a temporarily reduced payment since last August. At the time of my annual review in November it was clear my circumstances would not improve and the IVA would fail. I therefore made an appointment at my local county court,submitted the paperwork without consulting my IP and January's IVA payment paid the bankrupcty fees. The judge was aware of my IVA and never questioned it once, in fact he told that in the circumstances it was probably the best thing I could do. I was declared bankrupt and the official receiver contacted my IP. Last week, a whole month after I had been declared bankrupt I received a notice terminating my IVA due to non compliance.
Amazingly, even though I had paid over £7k into the IVA, less than £3k was distributed to my creditors. My IP had taken the nominee's fee and, bar a couple of hundred pounds, their IVA fee out of the first year's contributions. I struggled for a whole year just to give them an easy pay day.
Anyway, I digress. The way I did things may not be as it should be done, I don't know enough about the subject to make a judgement on that one way or the other. There is however clearly no legal requirement for the IVA to have failed before a bankruptcy petition can be filed.
Strictly speaking the County Court Judge was wrong in law as whilst in an IVA no legal proceedings can be brought whatsoever. So presenting your petition which was accepted by the Judge was wrong in law. However your IVA has now been terminated and you remain bankrupt. Most IVAs contain the provision to pay the IP his/her Nominee fee before anything and the first years Supervisory Fee on termination. A lot of the work is all front end loaded. Good luck.
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.
I think you were lucky there whattodo. A lot of courts now won't accept a petition without the termination certificate. I think they have tightend up on this recently.
The thing to do would be to check with the court when you phone up and see what their procedure is.
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
