www.iva.co.uk

Hi
We have had our IVA accepted, paying back £1280 per month at 71p/£. (Paid 2 months)
Have just discovered wife is pregnant (not planned, but I guess I had something to do with it[:)])
Already have 4 kids under 6(childcare bill £900 as it stands)
New baby will cost £160 p.w. childcare, plus increased electric (washing) and clothes/food etc.
Wife probably not want to go back full-time after baby.
Are we better going bankrupt now?
(Negative equity on house, as have secured loan on it)
Advice please?
Thanks

Hi whoopsadaisy

Congratulations on your news, its a hard decision to make but if you have no equity and no other assets to lose in BR then it may be an option for you, have you disccussed the situation with your IP?

Pippa

Hi
Again Pippas advice is spot on,have a word with your IP.
Regards

Andy Davie
IVA.co.uk Spokesperson

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

Given the level of commitments that you already have, coupled with the fact that you have no assets, what was it that led you to choose an IVA in the first place?

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

Hello Melanie
We felt compelled to pay back as much as we could afford to our creditors (16 of them in total!)
We did consider bankruptcy, but thought the IVA was the more honourable route to take.
What would you suggest about our next step, as clearly we are going to have a problem paying our monthly amount with reduced income and/or increased expenditure!
Thanks

Congratulations Whoopsadaisy on your lovely news!
However, I can see that financially this is going to be a nightmare! (we have three kids, and that is expensive enough, and they are past the baby stage!)
Maybe BR is a sensible option, as how will you pay the extra childcare? And if your wife goes back part-time, if at all with 5 kids (!) her drop in income will surely prevent you paying your IVA contribution?
What about a nanny? Maybe cheaper in the long run? You could have a live-out one if you couldn't stand the thought of someone living with you!
Blue

Hi whoopsadaisy,

Congratulations!

Like myself I have 5 children and my eldest is 7. I am not working at the moment but my husband is. Do you have Child tax credit? With child tax credit they help you with your child care expenses plus your entitled allowance.

I am looking after my children bcoz I am not comfortable of someone else looking and being with my children more than me.

Why not try that route if your tax credit allowance plus child benefit is worth staying and looking after your kids without worrying extra expenditure like childcare.

I hope it helps.

Regards,

maria

Hi

Just wanted to say congratulations, I hope that everything runs smoothly for you.

BR might be the best option for you, you have tried to pay back but sometimes circumstances overtake us.

lily

You need to work out a revised income and expenditure statement for when the new baby has arrived, find out what additional benefits you may be entitled to and then disuss the matter with your IP. If the IVA is then unaffordable, I would have thought that bankruptcy is a better option than an open-ended and uncertain debt management programme.

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

Congratulations on your news... For someone in your position, Bankruptcy might not as bad as it sounds.

• The responsibility for paying your debts will be away from you

• You will normally be Bankrupt for just 12 months. After that period you will be discharged.

• If you can afford to do so, you will have to make monthly payments towards your debt for 3 years. However, after these payments are completed, any outstanding debt will be written off by law.

• If you declare bankruptcy, you will be allowed to keep reasonable household items. You will not have to give up reasonable goods such as your washing machine, fridge freezer television and DVD player.

I suggest you have word with your IP as soon as you can.

Regards,



Julia Simavi

Shortlisted with special commendation for Debt Counsellor of the Year by Credit Today Awards 2007

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