www.iva.co.uk

my iva started only in august 08, we felt this was the best option for us at the time but since then things have got so much worse! i have my own business which is now really struggling dispite my best efforts i fear this is going to get worse in 2009 like the press keep saying, so i feel like everything is starting all over again?!i have written to my business landlord asking for our lease to be terminated immediately and explained we are having trouble keeping up with payments for the business, still waiting to hear from him, but its highly unlikely he will agree as my lease is due to expire march 2010 and the market is terrible for renting premises, we cant afford to pay the iva i missed the last payment, i have spoken to the iva company, saying my wages are down and outgoing are up they said that there is nothing they can do and creditors will not agree a reduction as we are already making minimum payments, my husband will not be getting a pay rise this year, petrol. gas and electricity and food is so expensive i cant see away out? considering bankruptcy but we cant lose our house we have a set of twins only 18 months old!feeling like a very bad mum what can i do??????????[V]

Hi
Bankruptcy doesn't always mean that you will lose your house, if you have no equity in it.
Do you think that you will be able to rent a property at an affordable amount ?
I can understand you wanting to keep hold of your house but not if it is simply unaffordable.
Bankruptcy may be a welcome relief for you both, please do not be frightened by it.You really should look closely at this option
Regards

hi, thanks for your reply, we have no equity in our house, about £15.000 in negative equity at the moment! our mortgage is £1200 a month we have a 3bed house ,we had a look at renting but there is hardly any difference in price, our house would be affordable if we didnt have to make the big iva payments which are £410?i guess i just dont want to give in to it?! but think im going to have too!thank you

myself and my husband both have an i v a with some joint debts but mainly all in my name? could it just be me that went bankrupt or would he have to also?

If only one of you went bankrupt, then the other would become liable for the whole of the joint debts I believe.

Hi
If you feel that you can afford your mortgage going forward then if you both opt for bankruptcy all your unsecured debts will be wiped out.Bear in mind that youmay have to pay a proportion of your disposible income into your bankruptcy for three years, however this will not be as much as the IVA payments and if your income has dropped you may make no payments at all.
As you have negative equity it is possible that a third party can by the Offici Receivers interest in your property for a nominal £1 plus a few hundred pounds in costs.
Regards

Your IP does not sound as if they are being very helpful. Did you meet them prior to signing the proposals - amd what steps did they take to assess the viability of your business prior to agreeing to act for you? How much are you currently paying into the IVA?

Hi, regards your commercial lease, have you considered asking your landlord for a break in paying rent? he could well agree as it will be difficult for him to find another leasee in the current climate and it's better for him to have the property occupied in terms of security etc.

I only ask as someone I know who is in the same position where their business has suffered in the past few months, the bank wouldn't lend them any money to bridge them over and where the reality was that paying the lease was the difference between the business going under or staying aflaot. They approached their landlord and he gave them a break for a few months.

I guess it depends on the position of your landlord, whether or not he owns the property outright or is still paying a mortgage on it.

But worth a try.

Yes, Landlords are being far more reasonable now - have a discussion with them - might be able to help whilst you ride out your problems. However the best advice is to sit down with you Accountant or IP and discuss everything to see what other solutions might e appropriate. Bankruptcy might be the option but discuss first with a professional. Good luck.

thank you so much for all your help and advice, my i.p still being no help at all, ut im going to call tomorrow to see what my best options are?!i have spken to my landlord he has agreed to let me out of my lease in march 09 which is a year early, so that will help me alot as i can go mobile!so fingers crossed!

That is good news - sorry that your IP is being no help - who is he?