Please help iva failed

[r.s]

Hi everyone im really upset right now basically my iva pretty much failed earlier, and its HSBC all again causing problems. HBOS representing them basically would accept the iva but only if i upped my payments to £300. I only earn £750 and the proposed 260 for 20,500 (50p to the £)of debt was a strecth which was tight £300 i simply can not afford it.

Im storngly considering bankruptcy but am so confused upset can't think what to do need an answer by tomoorw morning please can someone help me as i am in such a state and don't know what to do. My dad has spent all day trying getmoney but he can't i have no assets so im thinking this is the only opition left now

Are their any conditions under which I would not get baknruptcy? Is it possible a judge may refuse. I really don't understand what to do and not sure i can go throught this.

Please help

im sorry about the typing and spelling im shaking so much and can't think. I can't believe this has happpened.

rs

[MelanieGiles]

Hi rs

I am so sorry to hear that the representatives of HSBC and HBoS are pushing you into IVA payments that you feel that you cannot afford. What does your IP say to this?

If your creditors meeting was today, you can ask the IP to adjourn proceedings for up to 14 days for you to think about matters, so do not be pressurised into making a decision by tomorrow morning. Who is your IP by the way?

If you have an IVA which is eventually rejected, it would be very unlikely that a Court would refuse to make a bankruptcy order. This may be your best bet, and show these people that they should not push people into IVA which are unaffordable. As an alternative, could your Dad give you the extra £40 per month until you receive payrises etc? And where do the creditors feel that you are overspending - your IP must negotiate with the creditors on your behalf - and do this without delay.

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

[scaredkez]

r.s so sorry you didn't get the result you wanted, the thing is if you try and live on a budget for the next five yrs that you know you will not cope with the iva will fail, if you have no assets i would seriously consider BR, its not as bad as you think, the judge will only refuse if you have not sought professional help,i went BR 2 weeks ago, and although i have assets i am prepared to lose them, for the peace of mind now, i had been drained so much for 10 months trying to get out of this mess its such a relief, i found it hard this week when my car was taken, but luckily my parents have bought it back, you have your dad already on your side, i wish you luck, don't beat yourself up you have tried and they have refused, they won't get anything back in BR
good luck
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[freelili]

Rs
If you cannot get your IVA approved with 50p in the pound its unlikely you would be able to maintain it, I would have thought 50p was enough considering your income. Please dont despair, its not all over yet, read kerris blogg, Bankruptcy sounds scary but its not as bad as you think and you sound like you have got your dad for support. I really feel for you, I know how it feels to be 'owned' by HSBC when you are doing all you can to repay them with what you have. At the end of the day, do they deserve anything?? When your are sitting there, upset, crying and shaking offering them all you could???, I dont think so. Get some tissues, get a cuppa and read kerri and skippy8s blogg. Then hold your head up high and march off to the BR court.

LILY

I believe that angels breathe and love will live on and never leave. I cherish all you gave me everyday.

[Skippy]

Hi rs, I'm so sorry that your IVA was rejected. As Melanie says, don't be pressured into making a decision this morning - use the 14 days to get your head together. Please don't be pressured into agreeing to an IVA that you can't afford, as it would be bound to fail. I was in an IVA which only lasted 4 months, as although I wasn't pressured into making high payments I thought I could afford more than I actually could. I went BR in March and to be honest I wish I had done it sooner as I the only asset I had was my car.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[Sadsack]

Hi r.s

I am so sorry your IVA failed, but as the other posters say, hang in there for the 14 days. I think Melanie is right by suggesting you ask your Dad if he could cover the £40 for you for the time being.

Please keep us posted as to what happens and what your intentions are.

Sue

[Oliver]

As everyone else has said, take your time to make a decision but I think that as you have no assets and if you are confident that bankruptcy won't affect your ability to continue in your current employment that you should seriously consider bankruptcy. You have put forward an offer to your creditors to pay them back to the best of your ability, which is very commendable, and they have rejected this. Bankruptcy is a responsible solution for debt difficulty and I am sure that as your IVA has been rejected by the creditors and as long as all your expenditure is reasonable then the court will have no problems with you going bankrupt.

Is there any particular aspects of bankruptcy that concern you? There are many people on this forum that have been through bankruptcy and might be able to allay your fears.


Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[r.s]

Heye everyone thankyou for all your messages. I haven been up all night and haven't slept and am in such a state right now. I came to the desision last night that the only way out of this now is bankruptcy. I have spoken to my ip this morning and refused hbos demand of more money as i will not be avaliable to live simple as, the amount was only to accomodate hsbc anyway and they still floored it. Anyway i dont knowe what to to but the iva has now officially failed. I don't know what to do now? Please help, what do i need to do what practical things can i do. I tried do contact citizens advice but they are rubbish. I am seriosuly jepodiing my postion at work my manager saw the state i was in so sent me home, baiscally i tried tounlock a door and couldnt because i was physically shaking so much. Please someone help me because i dont understand what i need to do and im so scared.

[Skippy]

Hi rs. First of all, please calm down and take a few deep breaths. You have done the best you can, and if HBOS won't accept the offer there is nothing more you can do with your IVA - it's not your fault. Have a look on the sister BR site - www.bankruptcyhelp.org.uk. There is a lot of useful information on there posted by Debt Dummy, who also posts on this site. When you have done that, have a look at the Insolvency website - www.insolvency.gov.uk. That has all the information you could possibly need regarding BR. You will need to find out where you local county court is and give them a call to find out their waiting times - some have a long backlog, some (like my local court) operate on a first come first served basis. The BR clerk will also be able to send you the BR forms, or else you can complete them online on the Insolvency website, which is what I did. BR costs £485 I think (the price has gone up since I went to court) which needs to be paid in cash. I used my disposable income to pay the fees when I stopped paying my IVA.

Please rest assured that you will be treated with kindness and dignity when you are at the court. You will see the judge in his office and not in a court room.

If you have any questions, please keep posting and we will all try to help you.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[ivoriva]

If you really really dont want to go br then you could offer a DMP - I'm sorry I dont know your full circumstances but this could at least keep you going for a period of time whilst you look into other options and decide what your long term solution should be. It is unusual for creditors to make you bankrupt - so you can do things in your own time. You just have to put up with some more calls for now, but be strong with them - dont ignore them. You could also draft an offer to your creditors yourself, as long as you treat all creditors fairly this is possible - but means you have to put more effort into it and some creditors dont like informal arrangements but some do. Dont forget with a DMP or Informal Offer they should allow you more in your IE because they tend to be for much longer and will potentially repay in full - so get the best deal you can if you do down this route. Dont worry too much about Debt Collection Agencys and banks selling on your debt. This often happens and sometimes the companies they sell too are better to deal with than the banks as they bought it for probably 10-15% of the actual debt! And dont forget, although your IVA failed this time you could still submit another in around 12 months time - hopefully by then SIVA's will have come into play and you will only need 50.1% not 75% to get it accepted (if the debt is less than 75k I believe). So you could do a informal offer or DMP for 12 months then propose another IVA or SIVA.

But of course, BR will offer you a way out now - if you dont have much to lose in terms of assets then it shouldnt be the end of the world. Even if you got a BRU/O (maybe this is putting you off BR?) then it would probably still be finished well before any other solution would. So dont panic, you will find a way. In proposing your IVA, Im sure the creditors have seen a willingness of you to pay something so most should be happy to come to some sort of arrangement with you now if you dont go for BR - as they know it'll be this or nothing.

Good luck with whatever option you choose, and dont forget they'll always be people on here to talk too and get advice from.

[DebtDummy]

r.s some of us here have had an IVA not accepted or a failed IVA or one that was unrealistic. Skippy gave you two good sites to go to for information. The CCCS is also very helpful and there is an insolvency helpline to assist you in filling in the forms.

Relax, do not panic. Some of of have been there and know what it's like to experience this. You are not alone. Bankruptcy is a serious debt management remedy, but when you have done all you could do to repay the creditors and they want money you do not have what are you to do? Money does not grow on trees for us to pluck and spend (smile).

I had HSBC as a creditor too. They wanted a higher percentage as well. This was a few months ago. When my IP informed me and my hubby of this we were stunned. We simply could not afford it and had to discuss other options. We petitioned for bankruptcy 3 April 2007.

As Skip mentioned there is a sister site available to you. Here are the contacts for CCCS and the insolvency helpline.

CCCS:http://www.cccs.co.uk. The insolvency helpline telephone number is:0845 602 9848

Please seek professional assistance BEFORE filing. The judge will ask you if you had and if you reply no s/he will NOT grant it and you would have wasted £485.

Feel free to ask us anything. We are here for you.

Take care



All I have left is my humour.

[r.s]

Right really shocked at what has just happened and again need some more advice. Basically my ip contacted me and has said that the creditors will not shift but they can reduce their fees as they believe its in my interest? (Or is it the fact that they stand to make a few thousand if it does go through?) I basically explained what i felt and my ip passed me over to someone else whop i ahve never spoken to, saying that bankruptcy was not in my best interest and i would be making a mistake. I explained to hear because of the state of my health i just want the quickest solutionpossible now to make a fresh start and even right at the end of the call she said what if we can reduce our fees to a point that it is only £260. I am shocked!??? Are they just rtying to cut a deal so them make money? i really do feel now that even at 260 i would be under the thumb and it would be destined to fail and it would and then i would have to go through all this again??

She also said what if you can't make the contributions, your making a mistake, what then etc etc


I don't know.

Inebwteen when i last posted i had contacted my local county court am due to go down on tuesday, but now im wondering would a judge refuse i dont know my rights. I have spoken to someone from ccs but still confused. Please advise anyone?

[Oliver]

If you don't feel that you will be able to make your contributions each month for the duration of the IVA you need to think very hard about whether this is the correct option for you. If you enter into an IVA and X months in you can't afford your payments you will most likely end up having to go bankrupt anyway.

If you are insolvent, which you undoubtedly will be Bankruptcy is a legitimate option for you. You sound like your health is being severely affected by these debt issues and I feel that Bankruptcy could be the best way forward for you.

I am not trying to push you into a decision either way, just trying to make you clear on your options. Remember also that you will possibly have to make a monthly payment through your bankruptcy for 3 years, although the court will not enforce an unaffordable amount.

If you truly think that an IVA for 5 years at the figure quoted is unsustainable then you should opt for bankruptcy.


Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[freelili]

Hi

I hope you are feeling better than last night. I feel that you need impartial advice here, the IVA company are trying to keep you and I dont believe an IVA is the only answer to your problem, I feel that by them agreeing to your 'figure' and stating that BR is a mistake is based on their own interests and not yours. I am sure you have worked that out for yourself. Take the time to gather impartial info and make an informed choice about what is in your best interests, I know and completely understand that you want it sorted ASAP, but I have read so many times on here of people who agree to anything just to get an answer to their problems and save them from creditor grief. Only to find later its unrealistic and there was/were another option/s.

Good luck to you and take care, your health is more important.

LILY

I believe that angels breathe and love will live on and never leave. I cherish all you gave me everyday.

[Adam Davies]

R.S
Firstly well done for not accepting a figure that ultimately you know that you will not be able to afford.All that would have happened is that you would have struggled through for a few months and then your IVA would have failed.Your IP would have kept any money paid into your IVA to cover their costs and you would be back to square one.
I suggest that you take Melanies advice and ask for an adjournment whilst you gather your thoughts.
Sit down and think...can you realistically afford £260 per month,each and every month.Five years is a long,long time.
Bankruptcy would be an option and I feel that your IP is not keen on it simply because they will not earn a penny from you.
Take a few days to gather your thoughts and then post again with your proposal.
Good luck


Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp