I have been in an IVA for 3 years with 3 more to go (extra year added because I have a house). My daughter really needs some money so I am considering selling the house and going bankrupt to save paying out £350 a month for the IVA - that money could go to my daughter.
Is this ever considered to be a viable option - going from IBA to bankruptcy. I don;t want to ask my IVA company as I am not sure they wuld give me unbiased advise.
Hi curlytop, I know some posters who IVA's fail declare bankruptcy, maybe because of job loss or change in circumstance. With bankruptcy you may be liable to an IPA order which could be payable for 3 years. We have some knowledgeable posters about bankruptcy so it may be worth hanging around for them as they will be able to give more concise advice. x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
Hi - it is likely that you will get an IPA for three years so you may not be in a position to help your daughter in BR. How much does she need and why? It is possible that your iva could be varied to cope with your daughter's need. Also, how old is she?
Hi Curlytop - it's hard when you want to help your children, but money is tight. I totally sympathise with you. Is your daughter aware of your IVA?
Please don't rush into failing your IVA - you would need to miss 3 payments for this to happen. If you did go BR, then as the others have said you may have to pay monthly payments for the next 3 years and your credit rating will be shot for 6 years from date of BR.Plus of course you have to pay fees to go BR. The monies you have already paid into the IVA will be shared out amongst your creditors after IP fees have been paid.
You're halfway through the IVA and it would be such a shame for it to fail. I'm sure your IP will try and help you to maintain the IVA, so why not talk this through with them.
I really wish you all the best - it is so hard being a parent in an IVA. xx
Hi Everyone
Thank you for the replies. My daughter is 22 and with her partner but expecting their first child soon. They want to buy their own place but living in the SE and being in low wage paying jobs their chances are zero. I was hoping that going for bankrupcy might enable me to help them out but it appears from the above (and other research I have now done) that is not really feasible.
Its a real b*mmer being in debt [:(][:(]
Yes, Jan, it is a real bummer --- but the good part is ... not for long !!! I know looking ahead, it seems a long while, but, when you look back it will have passed in a flash and you will be debt free.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
If you go bankrupt and there is equity in your property this will vest in the Trustee, and if you have disposable income of £350 then it is very likely that you will get an Income Payments Agreement or Income Payments Order for the same sum for the next three years.
With this in mind, it is perhaps best that you remain in the IVA.
Hi - I can sympathise with housing prices in the south east. They are impossible for first time buyers. But your daughter wouldn't want you to go BR to buy her a house. You only have three years left so you can always help her then. You're right tho...debt is a kicker sometimes.
Sorry to hear of your problems, I hope that your daughter and her partner manage to find somewhere to live. I would certainly stick with your IVA as you may end up worse off in the end and in another three years as BOL says, you will be in a position to help.
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 agree with the other posters. If you do go bankrupt, it is unlikely that you will be any better off in the short term as an income payment agreement will almost certainly be set up and so you will not save anything. There is a chance that the official receiver will allow you a slightly more generous budget to live on thus reducing the payment you make. However, you should not count on this.
Hi Jan
There are some bargain properties to be had up here in the North but the problem is the huge deposits lenders are asking for these days. I can sympathise with your situation and wanting to help out your daughter. My eldest daughter is married with 2 lovely children (one age 4 yrs and the other 10 months). Her husband has a low wage job which means they have no chance of getting on the property ladder. They managed to get a house through the local housing association and are very happy.
Our debt situation meant we ended up getting our current home with the same housing association after voluntary repossession.
We found ebay to be a great source for the larger items needed for a new baby and places like Asda, Matalan etc excellent for clothing.
This forum is an excellent resource for advice, guidance and support.
From my limited knowledge I would think it best to continue with your IVA as it doesn't sound like bankruptcy will benefit you at all.
I sympathise too Jan its commendable wanting to help your daughter but the best way to help is to get yourself out of debt, stick with it you've come so far already it will be over before you know it and then you will be in a better position to help out. Does she know your situation ? I would always suggest discussing everything with your children it will help them understand your situation and prevent them from getting into a similar siutation.
Good luck
KAren
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