My husband and I started a joint IVA in April last year. Everything was going well until September when he lost his job. Luckily, he was able to do supply work but this is only during school term time and so our monthly income varies from month to month and is significantly lower than when had our IVA accepted.
Although we contacted our IP and told them that our income had reduced, and our monthly payment was reduced, we are still struggling. They are basing our IVA payment on a regular income - not taking into account that for 2 weeks over the school christmas holiday my husband did not pick up a wage. The same will happen next month when the schools have half term.
We phoned the national debtline to discuss this with them and they have looked over our income and expenditure and said that with our new circumstances, an IVA doesn't seem appropriate for us anymore.
So my question is, what will happen now. Will our IP make us bankrupt or will they return our debt to our creditors who will start chasing us again? Can we try a DMP?
I just know I can't go on anymore. I have to borrow money from my parents to feed us. There is just nothing to live on.
Please advise.
Hi, firstly put your family first, it's doubtful the IP will make you bankrupt, you can try a DMP or if you have no assets you could always consider bankruptcy? Have a word with your IP as s/he will be able to discuss all your options with you. All the best. xx
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
Your family comes first as Lesley says. I agree that the IP won't make you bankrupt. You can let the IVA fail and try again, or do a DMP or go bankrupt yourselves.
Try speaking to your IP direct rather than a case worker, that sometimes works.
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
Hi - you need to speak to your IP for further advice as the reduced payments don't seem to be enough help.
National Debtline are a commercial company as far as I am aware, not a CAB type organisation. Though I stand to be corrected on this.
Your IP will discuss all the options with you. I would think you could discuss:
- both of you maintaining your IVAs with a further reduction in payments, possibly with an extension to the term
- your husband entering a DMP or BR while you maintain your IVA
- both of you entering a DMP or going BR
- you entering a DMP while your husband goes BR
- you going BR while your husband enters a DMP
The route each of you take will depend on your respective income and debt levels and whether there is a property to protect.
Thanks guys, I just can't believe how things can change so drastically over a few months. Its all becoming too much... especially when you have an 18 month old who is constant need to new clothes, nappies, wipes, nursery fees etc etc!
I really dont want to loose our house so hopefully a DMP could be arranged.
Thanks again, you have made me not feel so alone now
There is no need to feel alone, there is mostly someone here. Do you have equity in your property as you don't always lose the property in bankruptcy? x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
Your old friends on here will always be around to support you.
Speak to your IP in person in the first instance. If they can't help you then one of the experts can advise about your next move.
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
We have no equity in the house as we have a secured loan on the house as well as the mortgage. I wish I had never clapped eyes on Carol Vorderman and First Plus!!!!
BR could be an option although the regulations for BR have changed recently so the OR will keep an eye on the property for at least two years and three months in case it increases in value during that time.
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
I don't know too much about bankruptcy but might be worth considering along with all other debt solutions before making your final decision of which route to take. x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
Just make sure you have all the info on all solutions - if BR is the best solution, its not as daunting as you may think. We're here to support and help whatever happens xx
It is always better to seek advice from your own IP when you run into difficulties than going outside of that circle. If your IVA is going to run into default, it may be better to simply look at bankruptcy now rather than delaying the agony and struggling to maintain unaffordable repayments. There are few opportunities for permanent work within the teaching industry at present, so the supply work could be here for the long term.
I agree about the teaching. My daughters friend has just graduated with a teaching degree and she is working full time at Tesco at the moment!
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
My daughter has been qualified for five years, and still cannot get a full time position other than supply work. And they keep taking on more students!
