struggling even to manage the IVA payments

[may07]

I really cant thank you all enough for taking the trouble to reply and answer my questions. I am thinking more and more that bankruptcy may be my best way forward. However, Im not sure as I dont know enough. The IVA option appeared to have a little more dignity attached to it but unfortunately they dont accept dignity at the supermarket! [8D]

I dont want to plague you with questions and this has already helped me in moving closer to considering bankruptcy. I know the absolute basics of what bankruptcy involves....... in fact until I came to this site I didnt even know how to spell it- um it has a T in it! (laughing here) . I dont really want to go into great details about my particular circumstances on a public message board ( no offence intended). Is there anyone/agency that any of you know of that I could talk through my particular situation in private, and get impartial advice to find out what the long term consequences might be and the best way for me to begin the process if that turns out to be the best course of action?

Kindest Regards
May

[ray_a]

Hi May

No problem about asking and discussing this is what this board is all about and I have only just found it a few days ago when I was facing what at the time was a real crisis. The advice I got was really helpful and gave me the confidence to deal with the difficulty and confront it.

I am sure one of the experts will come on and give their details so you can talk to them personally.

You are quite right about the dignity aspect as well.

Bankrupcy does not have the same stigma as it did years ago so don't worry about it!

After all there are going to be at least a million people in this country facing it over the next two years.

My only concern though is that if you inherited or had a major windfall then you might be required to pay off your debtors. The only reason why I say that is that I read it somewhere a few months back in a newspaer article.

The Experts will be able to tell us the true position.

The other thing is that you will be able to keep your bank account if it is basic one for IVA like minded people so you won't see any difference in your life style there.

Also you will be able to rebuild after 5 years which if you stayed with the IVA or debt plan might take longer to come back to normality whatever that means!!

Anyway take and have a restful good night's rest

Take Care

Ray

[scaredkez]

may, i have had no stigma what so ever attatched to me for going BR, no body knows, unless i have told them, i have told my boss who is supporting me all the way and my family, i.e. mum and dad and that's all that needs to know, my hubby also told his boss and he tries to give him all the overtime he can as he thinks he may be struggling, its unbelievable the support we have got, i wish we had done it sooner, our biggest hurdle is yet to come, we have equity in the house so we will lose it, but we have geared the kids up to a new challenge and my eldest is so looking forward to moving as long as we can get a 4 bedroomed house so he can get his own room lol, but for me personally, i can sleep at night, i don't dread coming home or going to work any more, i am learning to live again and feel free, i am /was ashamed at the level of debt but feel i can hold my head up high and honestly say i have tried my best to repay as much as possible back that i owed, but the creditors refused my offers, even if it meant x amount of years to repay back in full, my judge commended me and congratulated me when i went BR as he seen i had tried my best, so i am not ashamed or embarrassed any more, and if anyone i know was to say anything to me that doesn't fully understand the situation i was in i wouldn't care or lose any sleep over it now, i picked myself up and my family and done what was the best for us at the time, i am not bothered if i end up living in a tent with nothing material as long as i still have my family and that's all that matters to me now, i wouldn't worry about what anyone else thinks they are not living your life and only you know how you feel and what pressure you have been under, its the happiest decision i have ever made and those who have known my story since october when i first posted will tell you now how much more positive with life i am now,good luck to you
kerri

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

[may07]

Kerri

Thank you so much for telling me about your situaton. Im not concerned about the stigma as such - its just that Im not sure if I could continue in my job if BR - the wording is a little ambiguous and doesnt make it clear to me. I live and work in the same area. Im fairly high profile and worry about losing credibility in my job if my name appears in the local paper as BR. If I lose my job and become redundant then ironically that is no longer a worry. You are so right though, your family, health and peace of mind are so much more important. I really hope you get that 4 bedroomed house ( or tent) [:D]. I wish you and your family every happiness and all that really matters for the future!
May

[may07]

Thank you ray I really appriciate your input.

Have a good night's rest too!

You know I googled and googled to try and get information and here it is- what a blessing!

Take Care!
May

[scaredkez]

may, i have a very high profile job and i am respected throughout my industry, i was scared that they would see it in the local rag, but to be honest so far nearly 2 months down the line it hasn't been published, i worried i would lose my credibility, but here is the best one, i have just been inspected by the local nhs/pct and have received the best report for the best admin/documentation and policies, health and safety and cossh, that was possible and my boss was told that i should be commended for the work that i had done, i don't even think me going BR comes into it, i still work the same, my credibility is still the same i have won 3 prestigious awards over the last 2 yrs i don't think my boss is going to get rid of me do you? and if anyone said anything he would laugh, he knows how hard i work and the commitment i give, BR doesn't even come into it, he thinks i have been very brave and very badly advised, in all honest i would never opt for an iva because so many are failing, (here comes the backlash) i was so prepared to go with anything my IP said regardless, i am so glad it was rejected not at the time tho, i worry about those that have committed to 5 yrs and would love to see how many make it, thats my personal opinion because i was led down the wrong path, but for others it has worked, if your are worth your salt it doesn't matter, and i truly believe that, i wrote a letter to my boss and explained my circumstances and hence the time i was taking off ill, he couldn't believe it, i would show up for work do my job, i wrote in my letter if he felt that i was no longer able to do my job through BR then i would understand, i got the biggest telling off you could imagine,there was no way on this earth he was going to let me go regardless and no one else could do my job to the high specifications that i did, can you imagine how i felt, it was a new beginning, i don't want to beef myself up but if you are truly worth it your employer will say so and keep you regardless of what mess you have become in your personal life.
thank you by the way for your kind words, i just want everyone to see the positive side of BR, its been the making of me.
kerri

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

[Skippy]

I agree with Kerri. I went BR in March and it's the best thing I ever did and I wish I had never gone for an IVA in the first place. Don't get me wrong, IVA's are great for some people but my best option would have been BR from the start. My close family and friends know, and no-one has said anything bad to me about it. I'm more relaxed now as I am no longer robbing Peter to pay Paul, and to be honest even in my IVA I felt I was existing rather than living as I was struggling with the payments.

Good luck with whatever you decide, and please keep posting if you have any questions.

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/

[may07]

Thanks I do have a few more questions. I am employed by a Company Limited by Guarantee. Director is my job title, but its only a name and could equally be Co-ordinator, or Manager. I am not a Company Director as in being registered with Companies House etc. I am aware Company Directors cannot maintain their position and go BR. I dont think Im in that position but I also see that you cannnot be part of a company's formation or promotion and go BR. Would this affect me?

Also, can you explain the BR process to me please. Do I petition myself or let my supervisor petition?

How long does it take?

What do I have to do?

What documents do I have to provide?

Do I have to attend court?

Will it cost me money?

Thanks for your help.

May

[scaredkez]

may my title is manager and it didnot affect my job, i do still handle money and banking, plus staff wages.
i petitioned myself, in some iva's i believe money is held back incase they need to petition your bankruptcy, speak to your ip, i know skippy petitioned herself too.

it takes less than 5 minutes for the judge to make you bankrupt, you can do the forms online and print off, phone your local court who deal with BR cases and ask them how far in advance you have to book mine was the next day, once you go to court it will cost 485 pound, the clerk will go through your papers write your case up for the judge and you will be sent before him some courts don't even bother with you seeing the judge, he will ask if you sought professional help which you must answer yes too, i didn't need to take any paper work on the day to court other than my fees and my br papers.

in regards to your employment also check your contract to see if BR has an affect on your employment, or speak in confidence to human resources.

good luck may in whatever you decide to do, anything else you need to know fire away

once you have been made BR then the OR may request paperwork off you in the form of statements etc, one word of advice they do expect you to be able to tell them what you spent large amounts of money on down to the penny, mine did anyway.
kerri

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

[Skippy]

Yes, I petitioned myself as well. I was advised by my IP that they wouldn't do it as I hadn't made enough contributions (I'd made 4) and I didn't want to wait to see how long it took my creditors.

I completed the forms online, and I didn't have to make an appointment as my local court allows you to just turn up and they see the first 4 people each day. I paid my money, swore an oath and then waited to see the judge. He asked me if I understood the implications of BR and had I taken professional advice. He then signed the papers and once the clerk had typed up the order I was on my way. I was back in work by 11.20am.

As much as I thought it would be scary it wasn't - I was treated with dignity throughout and it was a big weight off my mind. I have posted the entire story in my blog.

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/

[may07]

Ahhhhhhhhhhh Okkkkkkkkkkkkkk-Thanks Skippy and Kerri!

I have to admit the more I find out the more I need to ask. I was going to ask Kerri what she meant by statements for the OR? A personal history/circumstances statement as required by IVA , bank statements, statements of the debts as originally required by the IVA supervisor. Is it all of the above? The OR bit sounded scary and I didnt understand what you meant by having to explain the spends on large amounts of money to the last detail? From Skippy's blog it seems the OR wanted a year's worth of bank statements and the debt statements. I dont know if I still have all those documents. Crap organisation on my part I know! This is such a minefield!

[may07]

The other thing I dont understand is what is an IPA as opposed to an IVA. I thought going BR would mean I didnt have to pay out anyomore but that's not how it is sounding from your blog Skippy. Sorry but I just dont understand how this works. I have no house, no car no material assets. Will I still have to make payments if I go BR?

May

[Skippy]

Hi May, please keep asking questions - it's how we all learn!

I was asked for 12 months of bank and credit card statements, but I didn't have all of them. Don't worry if you don't, the OR can request them from your bank.

Regarding the IPA, it all depends on how much disposable income you have. However, the OR doesn't take all your disposable income, just a percentage. It's done on a sliding scale and I'll try and find the info for you and post it later.

The allowances in BR are much more generous that in an IVA. I have a higher food budget, I've got a (very small!) holiday allowance and I'm coping reasonably comfortably. Also, bear in mind that an IPA lasts for 3 years rather than 5 in an IVA.

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/

[scaredkez]

hi may an ipa is a percentage of your disposable income it will be no where near an iva payment and it lasts for 36 months unless your circumstances change for the worse, they will only give an ipa if your disposable income is more than £100 per month,your living allowances are so much better, as they aim to keep you solvent and live realistically, in regards to the statements mine have never asked me for any but others have if you don't have them they can easily obtain them themselves so don't worry about that,my OR asked me about the most recent loans i had taken out and what did i use the money for, and he did want it all to add up, but if you can't honestly remember then say so, you will be asked to make a statement on how you feel you ended up insolvent and what was the contributing factor, i was honest and said living way beyond my means,you will be discharged automatically in 12 months and some have been discharged earlier once the OR has completed all his investigations into your affairs, this is to make sure you haven't become insolvent from fraudulent dealings or took out credit when you knew full well you didn't have the means to pay it back.your case sounds pretty straight forward as you have no assets.
when you list your income and expenditure be realistic,and include holidays, insurances, pet food, haircuts,etc if stuck we can help you, you are allowed a lot more than if you were to go for an iva.
kerri
don't be afraid to ask if unsure of anything i have written.

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

[Skippy]

Here's the IPA payment scale:

This is a table of IPA percentages that you can expect to pay on any surplus income:

1st Column=SURPLUS INCOME
2nd Column=AMOUNT TO BE PAID
3rd Column=% OF DISPOSABLE INCOME


50 Nil
60 Nil
70 Nil
80 Nil
90 Nil
100 50 50
110 55 50
120 60 50
130 65 50
140 70 50
150 75 50
160 80 50
170 85 50
180 90 50
190 95 50
200 100 50
210 105 50
220 110 50
230 115 50
240 120 50
250 150 60
260 156 60
270 162 60
280 168 60
290 174 60
300 180 60
310 186 60
320 192 60
330 198 60
340 204 60
350 231 66
360 238 66
370 244 66
380 251 66
390 257 66
400 264 66
410 271 66
420 277 66
430 284 66
440 290 66
450 297 66
460 304 66
470 310 66
480 317 66
490 323 66
500 350 70
510 357 70
520 364 70
530 371 70
540 378 70
550 385 70
560 392 70
570 399 70
580 406 70
590 413 70
600 420 70

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/