Urgent advice needed

[sherbie]

Hi all, I am new to this forum and would really appreciate some help.

My husband and I entered into an IVA on Feb 28th 2007 on a debt of £35000.

When we initially contacted Debtmatters they assured us that the monthly repayments would be no more than £350. Great, or so we thought. A while later DM advised us, after having rec'd our income/expenditure, that the repayments would be approx £450 per month. This was still less than we were repaying our various creditors, so we jumped at the chance.

The proposal went to the creditors meeting on the 28th Feb and it was accepted, albeit with modification of an extra £150, bringing our repayments to £600 a month. At the time it WAS sustainable as I was earning £1160 a month and my husband earning £1250. We then proceeded to pay religiously and on time.....until I was forced to change my job.

My new job is not as well paid meaning that I now earn £350 less a month than before, and this has had a huge effect on us being able to sustain the £600 a month repayments. In early December 07 we asked DM if we could have a payment break due to Xmas and us actually struggling to repay the monthly £600. At the same time we asked whether they would consider a reduction in our monthly repayments from £600 to £400 a month to reflect the drop in my salary. DM advised that the payment break would be fine as we were ahead of ourselves in terms of payments anyway so a break would not make much difference. DM then confirmed that they would take the proposal to our creditors for another meeting. In Jan 08 we have only paid £300 instead of the agreed £600 but intend to pay another £100 next week as this is really all we can afford, and we are still struggling as it is. So, to date we have missed 1 payment and will only have paid £400 this month.

What are the chances that the creditors will agree to our proposal of £400 a month? (considering I have dropped £360 a month AND provided proof by way of wage slips).

Is there implications on us having only paid £400 this month as opposed to the £600?

Would anyone suggest bankruptcy? We do not own our home BUT we have a car on HP (3 years into a 5 year agreement in my husbands name) which my husband needs (reliable etc) for work. Will we have to give this up as a condition of going bankrupt?

If we have to lose the car would I be able to go bankrupt and my husband carry on in an amended IVA?

Any advice at all on any/all of the above would be great, we are going frantic here, please help.

Thank you

s herbert

[MelanieGiles]

Hi there and welcome to the forum

If the change in your circumstances is genuine, then creditors would be silly not to accept your revised offer - especially when they pushed you to accept far higher payments on the day of the creditors meeting.

If the revised offer is rejected, then bankruptcy is an option for you, but the decision as to whether you keep the car will rest with the finance company. Check the terms of the agreement to see if there are any bankruptcy termination clauses.

And there is nothing to stop you going bankrupt and your husband carrying on with his own IVA, although your Supervisor will need to separate the two estates.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Adam Davies]

Hi
A sensible solution would be a reduction in payments due to your reduction in income and I'm sure that your creditors will agree to this.
You always have the option of bankruptcy but this will only sort out your debts and your husband will still be liable for his\debts AND any joint debts so may find the IVA payments difficult to cover these.Who's name is on the HP agreement ?
Debtmatters can't expect you to make full payments if you do not have the money but keep them informed and hurry that variation meeting along as they can fail the IVA if you go three months in arrears

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[sherbie]

Thanks to you both for your replies, no disrepect to anyone else but I rather hoped you'd both reply.

We do not have any joint debt, I have credit in my name, and husband has credit in his.

As for the car, it is solely in my husbands name. We only want to keep it as not only do we have any money to buy a replacement, but he works 20 miles away so anything other than a reliable car would be detrimental to us.

Debtmatters assured us in early December that the meeting would be within the month, here we are in the middle of Jan and still nothing.

s herbert

[MelanieGiles]

Keep chasing them! The more persistent the client, the nearer it tends to get to the top of the in-tray!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Beechy]

Keep pushing, you IP has a responsibility to provide an acceptable service

Dave Beech