In breif...IVA in place since May 2008. Found out I was pregnant, it was agreed for us to sell up and move into rented so F&F given. Due to property price decrease, sold house but not enough equity to pay F&F. IVA monthly payments restarted. A week into new house, husband lost £28k job. Out of work for 6 weeks, continued paying a reduced amount of £50pm instead of agreed £336pm as that was all we could afford. Husband now in work but only earning £12k. We have continued with £50pm payments throughout and have finally received some help with the benefits/rent, however there is no way we can afford the agreed £336pm. Our IP has not been overly helpful throughout and says that when we do I&E try and free up as much funds as poss.....we can not do that, have three children and they say we should only be spending £30pm on clothes!!!! (shoes alone for one child is that, let alone school uniforms etc..)
I have sent emails constantly to IP to let her know how benefit claims have been going and to keep her informed of our monthly payments.
We have now started to receive benefits and have sent her a new I&E which only gives us £80pm surplus cash...is this going to be enough?
Our F&F settlement figure was £24k (debt approx £60k)
Not so brief I know..long story!
Please could I be advised as I am sure I will receive a call from the IP this week and would like to know my options from a wider knowledge before she tells me what we can or can not do now....
Thank you[V]
Hi
I don't think £80 will fund an ongoing IVA.
Why not consider bankruptcy ? On your figures you will not have to pay anything into your bankruptcy and it will give you both a fresh start.
If you do not want to declare bankruptcy maybe a DMP would be a better option for you
Regards
Bankruptcy has been mentioned before, do not really know too much about it and whether it effects us in the future or hangs over us at all. As do not really want anything like that...will look into this, thanks
Bankruptcy normally costs £510.00 and you are normally discharged after 1 year from all your debts although your credit history will be shot for 6 years.
You could end up paying what is known as a BRO (bankruptcy restriction order) for 3 years but that depends on your financial circumstances and is a hell of a lot lower than your IVA payment
If you have to make payments into your BR (which I don't think you will on those figures) it will be an Income Payment Agreement (IPA) or Income Payment Order (IPO) which lasts for 3 years.
A BRO is an extension of the restrictions of BR for up to 15 years (this is very rare).
If BR is the best way for you to get a fresh start please don't rule it out. It's not a decision to be taken lightly, but it draws a final line under your debts.
Thank you for your information, have just been reading about bankruptcy..scary!
We are currently on housing benefits and get some other benefits too, does this effect anything I wonder?
To be honest the thought of it is actually more scary than doing it. If you have a look at my blog I've written about what happened to me - I know every case is different, but hopefully it might give you an idea.
Sorry, I can't help about the benefits, but hopefully one of the experts will be able to soon x
Skippy13 - Your story sounds simular to us, our IP is useless to be honest, only seem to be in it for themselves unfortunately....it just all seems daunting really, I am curious of the long term probs we may incur years down the road after potentially having the Bankruptcy order and also how our landlord may take this info now, as we have signed for 12 months here and love the house and do not want to move next year again, the children need some stability
Bankruptcy sounds a much better option for you, given the changes in circumstances you have reported. Ask your IP to explain the process fully to you, so that you can make an informed decision as to whether to plump for this option. You have tried your best, but it is not time to put the family and home life first.
