Paying out early

[monday s expert]

Here the thing been in IVa for nearly 2 years - no assets (to speak of)and been paying £281 a month

The wife is expecting and needed her money for the IVA originally (all debt mine BTW) she only worked casually so income very erratic to say the least, now my boss has agreed to increase my pay to almost cover her lost earnings - when she is on maternity.

Originally paying back 27 pence in the pound -so after 20 payments probaly only paid "the fees" in reality.

meanwhile most of my debts sold on to Eversheads (will they take less than 27 pence in the pound) Some debt still with Natwest (majority I think)

I did quick calculation and probaly owe just under £11000 to go for the next 40 months

The baby is due in Sept

My mum has been sending us money from Australia to help us survive...
I have to call the council sometimes to tell them the council tax may be a month late
My Brother (also in Aust) had offered some money - so I think he could scrape together £5000 - possibly £6000 if I beg my best friend at work ( the guy who gives me the £20 til payday)

my review is in October - should I just offer £5000 or run home to Mum in Australia and wait for "them" to find me

any advice greatly recieved
I haven't felt like this since I first set up the iva in those dark days 2 years ago.

[MelanieGiles]

Hi Monday and welcome to the forum

The most sensible way for you to deal with this issue is to try and offer creditors a settlement based upon your circumstances, rather than run away from the problem. I suggest that you speak to your IP to take specific advice, as they will know more about your case than you can post on the forum. If you are struggling with the repayments, then it may be possible to get creditors to accept a lower offer, but this will need to be done by a specific variation meeting.

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

[monday s expert]

Thanks Melanie, I have just had sleepless nights again - I am scared that the iva will fail or the baby just won't have the things that it needs. I feel stuck - I didn't go for a promotion at work for example as it would mean giving more money to the IVA

My family can see my stress and I think they think I have learnt my lesson with credit! But my mothers just doesn't understand why I can't get a loan and pay all that I owe or indeed get a second job - my parents "bless them" come from a different time/generation.

Mondays Expert ( everyone is an expert on Monday - after the games been played)

[MelanieGiles]

Most of our parents do!! And do remember that family and looking after your children and providing a happy home is more important than debt repayment. Try and come up with a deal for your creditors which gives them a sensible return, and move onwards - alternatively you could consider bankruptcy proceedings as a last resort.

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

[monday s expert]

Thanks Melanie,

Should I be happy or sad about Eversheds buying nearly all my debt??

I would like to be out from under the IVA if I could..

Re bankrupt - if I was bankrupt in the Uk would I be bankrupt in Australia??

With the IVA company charging yearly fees - if I varied payment to £200 ( what I probaly should really be paying without the wifes income and mums help) a month we would never get to the finish line - I saw that they soemtime extend to 6 years? - I can't take 4 more years of this...

What would they IVA comapny charge to take it to the creditors again and it wopuld probaly depend on who bothered to turn up at that meeting?

That would mean going thru it all again - wouldn't it??

Anybody please reply with comments

thanks again

Monday's Expert

[monday s expert]

Sorry - Mods have I posted this in the wrong area??

Is anybody else out there??

Melanie no disrespect BTW - ME

[MelanieGiles]

Hi again

The fact that Eversheds (you actually mean Max Recovery) have bought the debts makes no difference.

Bankruptcy is without geographical borders - if you are bankrupt you are bankrupt, no matter where in the world you reside.

You will need to discuss whether a reduction to £200 per month is viable with your own IP. From the flavour of your post, it appears to me that bankruptcy is now looking relatively attractive to you.

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

[Adrian Ratcliffe]

Hi Melanie,
I have read a number of times that you say: Bankruptcy is without geographical borders - if you are bankrupt you are bankrupt, no matter where in the world you reside.
How can this be is there a worldwide register like Equifax, Experian and call credit?
I don't understand how a credit reference agency in Perth could gain access to somebody's UK credit file?
Or why a bankrupt would be registered in Perth?
The following is by John McQueen in his book BANKRUPTCY EXPLAINED
The Bankruptcy Association of Great Britain and Ireland.

Bankruptcy is jurisdictional.This means that someone bankrupted under UK law is only bankrupt in the United Kingdom.If a bankrupt moves to Eire, the USA, France or some other foreign country, he it not bankrupt in that country. He can obtain credit in other countries, as long as he complies with the law in those countries.If, however, he acquires property or assets whilst abroad, and whilst still bankrupt, the trustee in the UK may well be able to seize those assets, if he learns of them.
So I don't want to argue I would like to know how and which statement is correct.
I bought the book in good faith and I have spoken to him a couple of times.

Regards
Adrian

[MelanieGiles]

Hi Adrian

The fact that you may not appear on a worldwide credit agencies reporting system does not alter the fact that you are bankrupt. Bankruptcy is a legal process which affects the individual for generally up to one year, and this status stays with the individual wherever the may roam.

I guess the answer to your query is that John and I are both right. My answer to the posters query assumed that he was asking would his bankruptcy end if he left the UK. The answer to this is not, as he is still bankrupt under UK law.

John McQueen in his book talks about the ability to raise money in other countries. In this aspect he is correct, however this does not take away the fact that the individual is still bankrupt under UK legislation.

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

[Adrian Ratcliffe]

Thanks Melanie,
So as long as the money raised is not to buy assets, property etc.
You could get credit (ant amount) and spend it?

Regards
Adrian

[MelanieGiles]

You could get it, but I do not think it would be a very good idea. The UK bankruptcy legislation still says no credit over £500 during the bankruptcy.

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

[Sadsack]

Under UK Law, if you are bankrupt, you are bankrupt. If you reside, or choose to reside in a country not under EU law, you can do what you want to do.

Apologies to Melanie in this instance!

There are no juristiction laws restricting you to purchase property or raise credit in any other country which does not fall within the boundries of the EU.

Sue

Ho Hum! Think I'll bang my drum!

Read My Blog
http://sadsack.blogs.iva.co.uk/

[monday s expert]

Thanks for advice people - but I am keen to stay off the BR course if possible!! I have a close friend that says just jump ship and go to Australia the fact that I good easily do this by looks of things is appealling in a way BUT I did get myself into the mess and I will get myself out!! I was hoping for some advice as to negoiating a payout and wether Eversheds would expect a higher payout than the first deal or indeed take the money now at a lesser rate - espeacially in light of the fact that
A/ My wife is no longer working (was only casual worker to start with)
B/ We have a child staring high school and a new baby on the way
C/ I am not British so I eithier pay more (about £900) to become Britsih or indeed get myself deported
to become free!
D/My pay rate hasn't improved much in 2 years - yet like everybody my cost living has gone up
E/ I could very easily prove that my budget is a crock - as I see from this site people are claiming things like SKY and Broadband and other things my original advisor said that I can't put on the budget ( I am not even budgeting for school dinners, school uniform or the school trip which came in at £300 last year.)
We definitely spend more on Food than we have on the list. We didn't even budget for the water rates in the household bills.
You can't even get 8 DvD's a month on what I have done for Entertainment!!
I haven't be able to buy a new business shirt in 2 years - my general manager has remineded me I reperesent the company when I am in public and should look less scruffy
I think I should call my IP and tell him were off to live in Queensland Australia (the outback)
Declare myself BR and leave the next day.
OR tell them to take my £5000 offer?

any advice??

Monday's expert

[monday s expert]

Andy, do you have any comments on what you think I should do??

[MelanieGiles]

You do now need to discuss this directly with your IP. You raise many issues, and these cannot be properly addressed through a general forum - which is any case requires your own IP's specific agreement.

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