Im in a lot of trouble :(

[s-star2009]

Hey Guys,

Im going to keep this short as possible.Ive been in IVA for 3 years - I lost my job about 3 months ago. Before that i was on a payment break for 3 months due to job cuts. i then had to extend the IVA when i lost my job. I have now asked for another extension of 3 months as i am still jobless and struggling to find work. Creditors meeting for extension is march.
So technically if that goes through im looking at a 9 month extension on IVA.
This isnt the problem:

The biggest problem is the debt ive accumilated outside the IVA - these were from cards and catalogues tha had a £0 balance and were not included - and i have through times of need made this go up to around £2000. I have stopped opening my letters for this and the minimum payments are getting sky high and the calls wont stop. My IVA company do not know about this.

I do intend on contacting my IVA company as its all got out of control. I am not sure what to say and i am very worried.
Does anyone know if these creditors can be included into the IVA or is it all just going to fail?

I have a feeling i may be going down the bankruptcy way but really want to avoid that...

Any advice will be great before i make contact to IVA company as i really dont know what to say.

thanks

[ClareSilver]

You need to be upfront and honest with your IP and tell him/her what's happened.

You are in breach of the IVA as you've been using credit and your IP could fail the arrangement.

However...... it's in your IP's best interests for the Arrangement not to fail, so if you have an understanding IP, he'she may agree to convening a meeting of creditors and leave it down to your creditors to decide on what to do. An ideal situation would be for the arrangement to be varied and these debts included.

[kittyface]

I don't know if this will help you, but I had a credit card that I didn't include in the IVA as I hoped to cling onto it for dire emergencies (no car, lose job etc). I was asked whether I had any credit when I entered the IVA, I said yes and this was never followed up so I thought it was allowed. (duh, I know).

However, they backchecked and when they saw I was in an IVA they closed it with a £500 balance on it (about 2 years into the IVA). I was having my yearly review and I filled it in and stuck a note to the back explaining what had happened and saying that they had agreed to accept £50 per month, which I would have to include in my I&E statement.

This was accepted and I made all of the payments until it was paid off - however I was right in the middle of a Debtmatters/GT handover, and I think DM just agreed to it as they weren't particularly bothered anymore and so GT could see it had been agreed in future years.

It has to be worth speaking to your IP about it because they are there to help you and to get the best result for your creditors, and forcing you into bankrupcy probably isn't it.

They might be able to include the debt to your current IVA (I've heard of things being added while in IVAs) and/or they might suggest an extension so that you can get it all paid off.

Seriously though, speak to them. Be honest and frank and you'll feel a hell of a lot better for sharing it with someone who can help you get on the road to getting it sorted.

Good Luck

[GilliB]

Hi s-star2009. I would encourage you to speak to your IP asap, and lay out the issues just as you have done here - honestly and openly. Sounds like problems arose around 6 months ago due to your job situation, so you did well for 2.5 years. Is bankruptcy an absolute no no for you? I only ask because you're still struggling to find work and have probably been relying on further debt just to cope day to day. The best way forward is to 'grasp the nettle' now and explore every viable and manageable option open to you. Wishing you well with this and your job search. x

[s-star2009]

Hi Guys,

Thankyou so much for your replies - Its all a bit of a mess - i guess my income and expendatures were almost never correct and the IVA went from being swift and easy to sudden annoyances popping up, probably being at my worse Now...!

I am hoping they can be included into the IVA somehow, but with the fact i have no job, i dont see a great outcome. But i guess honesty is the best policy.

Bankruptcy isnt the worse option at this point, i have no assets that can be taken, its just less headache if i didnt have to.

Im going to have a little think over the weekend of what i can say exactly, and pluck up the courage and pick up the phone.

Thanks again[:)]

[kittyface]

If I were you, I'd try and pluck that courage up to do it today. Your weekend will feel so much better if you've started to address it

[s-star2009]

That is true......! I may just do so...

[luluj]

Important that you speak to your IP immediately ....you are likely to be in breach of the terms of your IVA but possibly not the end ....have an open and frank conversation with them and review your I&E to see if there is any further support that can be offered.

[kittyface]

They might tell you to put it all in writing and email it to them. That way you can at least get it all down in black and white in front of you. It might be a bit more scary that way, but gets those whirling thoughts out of your head and somewhere where they are more controllable. I'd do that anyway, tbh

[slushysnow]

Hi

You just have to bite the bullet and call your IP company sooner you get it out in the open the better for you never mind about the money that will sort itself out I could have gone bankrupt but went IVA way so that was a lot tougher for me So even if you go BR then you have had a go at the IVA and its not worked out

You are not the first to get in the situation you are in now and you are not the last either
Fess up and let them tell you what they can and cant do If they say sorry cant do anymore go to the Citizens Advice and ask them
There is always always options to everything in life

Maybe they can add the £2000 on at the end depends what you pay now per month and extend a further year The BR would get you out sooner and you have tried the IVA way as I say so its all positive things in your favour

I was told when I started my IVA when I was getting all stressed and worried the guy said well they cant shoot you
Stay positive and get it sorted now and then move on

[Adam Davies]

Hi

Give bankruptcy some thought because it may be a welcome relief for you and yes do speak to your IVA company and put all your cards on the table.
Don't let the debt get you down, IVA or bankruptcy will both offer an end date to your debt worries

Regards

[MelanieGiles]

Varying to include post appointment debts is not a sensible solution - especially at a time when you are not servicing the repayments and don't appear to have any credible way to recommencing them until you find work. I am not sure why those creditors would want to join into a failing IVA in any case.

I concur with Andy's advice - unless you have assets which would be at risk under bankruptcy proceedings, this is probably the most sensible way to have an ultimate fresh start - leaving you with all of your energy and efforts to concentrate on finding a new job.