After much debate we were allowed to sell our house, move into rented to take up our IVA from where we left off.(were going to pay this through house sale but monies not enough!)
The creditors finally agreed a monthly contribution payable to a lower than average dividend.
We have paid our first payment only to be met with yet another blow.
My husband has now lost his job.
Due to our young family I do not work.
Our only income is going to be our child benefit (aprox £120 pm)until such time that possible benefits can be claimed for.
How are we going to pay our IVA now??
I have put off telling them as our IP as they fort hard for the IVA to continue....I do not want it to fail.
I am sure there are others in our position, any help/advise appreciated.
Thanks[V]
Hi Becky, I am so sorry to hear your news. What a blow for you!
You are going to have to speak to your IP,they may allow you to take a payment break while your husband looks for another job.
If you can't maintain the payments then you could think about bankruptcy, which would allow you to make a clean start.
You will have done your best, it's not your fault and your IP will understand this.
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
It's not a nice thought, but it really isn't as bad as it used to be, and it could be the solution to your problems rather than you having the stress of trying to cope.
Speak to your IP, I am sure he/she will be very sympathetic and help you out.
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
Unfortunately your hubby is one of many facing redundancy these days - I have never had so many clients ring me to say they have lost their jobs - and your IP will be the same.
Hopefully he will get another job soon, and there may be some redundancy money to tide you over in the meantime. Your IP will be very understanding I am sure, and allow you a little breathing space from the IVA payments in the meantime.
For the IP to agree a possible payment break does she need to arrange yet another meeting to get the creditors to agree this?
We only just scraped through the last meeting, with a few wanting the IVA to fail, would hate to upset the creditors further after them only just agreeing for us to carry it on under the new terms
I would think that she could authorise a three month break without the need to revert to creditors, but I also guess you have to ask yourselves are you flogging a dead horse and putting yourself under more and unecessary financial pressure?
Are there any assets which would be affected by bankruptcy proceedings?
The only asset we have is our car which we need for school runs and that my husband will need for his potential job. (we own)
Not really sure how bankruptcy actually works though
It is fairly easy - you make an application to Court for a bankruptcy order which has the effect of discharging you from your debts immediately. It costs £510 per person - less if you are on income support - and only takes between 50% and 70% of your disposable income for a maximum three year period.
Of course there is far more to it than this, but your IP ought to be able to explain things more fully to you - so that you can see if it is an option worth pursuing. You need to note that if your car is worth more than £2,500 it will probably be taken and sold, but you will be given an allowance to fund a cheaper replacement.
In our current situation we have no disposable income...not any at this time, this is where I am unsure how things will work..will have to have a chat with my IP to just check this option...If you have no spare cash, then what? Do things wait until you do have?
I believe your IP should be informed immediately and request of her a 2 or 3 month break whilst your husband tries and secures another job. Thereafter and depending on his success or not a potential variation could be proposed giving another 3 months. All of this time in payment breaks could be added onto the end of the arrangement provided your husband can ultimately get gainfull employment.
Are you both in 2 separate IVA's?
Since with no DI above £50 and no assets above £300 one of you could do a potential DRO (see my blob on this).
Let us know the answer to my questions.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
I don't think you can if you are in an IVA can you David?
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
DRO's are obviously still very new, and you are right Jan in that you cannot apply for one if you have an existing IVA, BRO or if you have had a DRO in the last 6 years.
I would read from that that if your IVA has failed then there is nothing to stop you applying for a DRO, subject to the acceptance criteria.
Interesting to get any other viewpoints on this.
Regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
Hi
I agree with Size 5 , as long as your IVA has failed you are free to apply for a DRO. Only if you have had a DRO in the last six years then you can not apply again.
Regards
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
