Hi There
This is my first posting on here I have been reading for years !
I Started my IVA with Accuma in July 2005 and have not missed a payment . I am self employed carpenter/builder and have been for 20 years .... work had dried up here and I am really struggling!
I am single parent with 2 teenagers, my wife left me several years ago, most of the debt was from her erratic spending. She has mental illness, we are not yet divorced.
I have earnt hardly anything since christmas, I have contacted my IP and they have told me to put in writing the situation and they may be able to suspend the payments temporarily. I still have to make all my other payments mortgage etc etc and think this will be the last month I will be able to do so unless work picks up really quick.
I have 4 year clause in the IVA with 50% of any equity to go to my wife.
I really don't know what I can do apart from go bankrupt. All other local tradesmen are struggling to find work my income has plummeted from £3k (gross) a month to well this month its £1400. There is no way I would survive another month even with the IVE payment £264 suspended. I am going to write to my IP explaining the situation also my wife has borrowed £10k from her parents and is pushing for divorce settlement. She previously agreed to wait untill I had to re mortgage, although I dont think I will be able to remortgage in the current climate.
I really don't know my best way forward ??
Any advice thanks
Hi Geoff. There are a number of issues and you should probably seek the sdvice of a solicitor. Given that you are looking after the children surely you should be entitled to the house or at least be able to keep your wife at bay until the children have grown up. In addition, she should be paying child maintenance if she has the income.
As to your IVA, it may be advisable to sign on as this would entitle you to assistance with the mortgage payments in due course. This at least would protect the property. If you have been paying your IVA for over three years creditors may accept what has been paid as full and final particularly if there is little or no equity in the property and it is invoved in a matrimonial dispute.
I would obtain an up to date valuation and redemption figure for your current mortgage to show your IP what equity is available as this information will be vital for creditors to consider any closure. Bankruptcy is of course an option and the implications depend a lot on what equity is in the property but it could be best all round for you to have your IVA closed.
I have just completed a I & E for the last 3 months and my average income is down £800.
I have written to Accuma asking for their advice and possible ways forward. I completed the online forms re benefit yesterday. I know i need to conatct a solicitor but will be difficult with no funds, that's why I have not done before I have jusy concentrated on working and paying the bills and IVA etc.
Given that you are a single parent and have applied for benefits you must be entitled to legal aid. Many solicitor's firms operate a free consultation or can claim the cost of the initial interview under the 'green form scheme' so you will not need any up front costs.
You seem to be doing everything right and hopefully Accuma can give you a reasonable payment holiday or settle the IVA. Is there any realisable equity in the property?
I need to get the propery valued but i think there may be, although I think I might have difficulty getting a mortgage and my (ex) wife will want some i guess.
Thanks so much for your response it is very appreciated.
Certainly have the property valued as quickly as possible as it will help in any discussion with creditors. A mortgage would be difficult to get at this time and creditors are aware of this but if you can maintain the existing payments with or without state benefits a judge may allow you to remain there until the children hit eighteen. Your ex wife would then just have to wait.
Had a call from Accuma yesterday and they are going to suspend payments for a while, I also have am appointment at the job centre on Thursday to try and sort out benefit that may be available. Looks like might be getting somewhere, I have also emailed a couple of estate agents to get my house valued.
Michael has given you positive and excellent advice. I cannot re-emphasise the fact that you must seek legal advice to sort out the various issues. The suspension of your contributions to your IVA will give you some time and leeway to get the legal advice. Good luck.
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.
Sounds as though you are finally managing to get somewhere chippy.
Hope it all works out for you.
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
