I had a joint IVA with the wife in 2007 completed early 2013, all run smooth no problems what so ever, however we are starting to get in a bit of a pickle again . The debt is ok at the moment and I'm managing fine but some changes in circumstances and some future ones early next year may have a big effect on my ability to pay. I want to pay my creditors so am considering another IVA ? probably just myself as the debt in the wife's name is ony about £1000. Or I may consider personal bankruptcy but I don't know what the at would mean for our house ?.
Info if anyone could advise ?
Total Debt £35000 from 9 creditors.
Equity in house approx £25-£30K
12 years left on mortgage
My income £21500 PA
Wife's gets carers allowance for our son
2 sons one is 19 and has moderate learning disability. The other is 22.
We get DLA for our son but not sure if that's counted as he's over 18 . we get tax credits and child benefit for him but this will stop when he's 20 and this will make a difference in income of about £500 a month and this is my concern ? Any help or advice appreciated and sorry for the long post but I know from previous experience you guys like as much info as poss.
Thanks in advance
Hard to say but there is something to factor in based on the care provided to your children - you cannot have lasting power of attorney if you are bankrupt if you need that as an option.
I'm sure which companies could help given how specialised your needs are because they are going to have to be really sympathetic to the whole scenario.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
A second IVA is a possibility although if you owe HMRC any money they could prove a little difficult as they do not like second insolvencies unless there are very good reasons. Other creditors such as banks do not mind so much.
Bankruptcy may be an option but your wife would need to find enough to deal with your share of the equity and the equity can be revalued in 2 years 3 months time so there may even be more.
The DLA is normally ignored when calculating your surplus income but the trax credits will lead to a drop. It may be possible to factor this in at the beginning and structure the payments so that they reduce at the time or alternatively this can be done as and when by way of variation. Personally I would want to see the viability going forward as the loss of the tax credits is happening next year and not way down the line.
If you are maintaining the payments to creditors at the moment and it is next year that you are worried about it may be worth doing a current I&E just to see. It is possible the DLA or your wife's income is subsidising your repayments and you may well be insolvent now.
Nothing to lose by getting some free advice from an insolvency firm.
Sorry to hear about your circumstances but would think carefully about bankruptcy as it could affect your house.
Take more advice from a professional - have a chat with Andy Davie/Vincent Bond for some free advice and hopefully find a way forward.
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 fully agree with Michael and would suggest an in depth chat with a couple of firms as soon as possible, to try to head off the storm.
The reasons I suggest a couple of firms is that they do all operate in different ways, and "one man's meat is another man's poison". You need to find a firm you gel with ( of course this will not be news to you:-) ).
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Hi Tab - I don't mean to judge but just want to stress that you seem to have racked up £35k of new debt in 2 years! You need to work out carefully how this happened. If you went Bankrupt you are highly likely to lose the house as I assume you wife would not be able to buy our your interest. If you have disposable income you would be expected to pay this into your Bankruptcy for 3 years. I doubt BKY is therefore the best option for you and would consider clamping down on your expenditure and paying the creditors yourself or looking to set up another IVA.
Thanks for the replies everyone, yes I appreciate I would be slated getting in to a bit of a pickle again so soon but maybe im just being over cautious and worrying Unnecessarily. 35k is probably quite an over estimate but I just anticipate things spiralling out of control and that's maybe why im just considering my options. While IVA's are a bad thing from one perspective life was much easier when I had one if that makes sense !
Between us we owed nearly 60K last time but its a lot less than that and would only effect me . I don't owe HMRC anything, its just personal loans and a couple of 0% cards. Yes I think I will avoid bankruptcy as there's no way my wife could raise half the equity in the house unless she borrowed it on cards but that would kind of defeat the object and put us back to a similar pickle.
Thanks everyone for your thoughts and help.
Hi Tab, sorry to hear things have got out of hand again - this post just goes to prove how easy it is to obtain credit post IVA and how it can escalate out of control. Good on you for recognising the signs and I hope you find a solution.
All the best.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
The fact you are seeking help and support now is testimant to you. I agree life in the iva is easier than out ... good luck with your next steps and we are here for you.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
Thanks everyone for your kind words just as a matter of interest the debt we have in my wife's name is around £800 , I can pay this off no problem before things get complicated , if I did that is there any need for her to be involved in my iva if I do look in to one ? She is joint owner on the house !
Thanks again everyone , I'm so please I have this forum to help now , wish I'd found it before I took my last iva out .
If this can be paid off then the IVA will be in your name only, however she will be involved with the property - any equity will between the two of you.
Have a chat with Andy Davie as he and Vincent Bond will give you some free advice.
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
Are you 55 or approaching that age. Never great to dip into pensions but if you have a decent pot (and can access it without paying tax, it could get you out of a pickle.
Also be aware of the new IVA protocols that a lot of people are now having problems with. There is a new clause which indicates that if a re-mortgage is not possible then a secured loan should be taken. This is catching a lot of people out and causing some major debates and distress.
No need to include your wife if her debts are only £800. Just make sure she is not joint on any debts as she would be obliged to repay these and leaving her out of the IVA could leave her exposed.
just as a matter of interest the debt we have in my wife's name is around £800 , I can pay this off no problem before things get complicated , if I did that is there any need for her to be involved in my iva if I do look in to one ? She is joint owner on the house !
