Hi I am new to this site but reading all the posts am sure someone will be able to but my mind at ease or point me in the right direction. My IVA was agreed on 2nd Aug 2006 I am paying £514 per month and in December 09 they were to increase by another £103 when my car finance was complete. In Oct 08 my husband was made redundant, he was unable to claim the full job seekers allowance due to not having paid enough class 1 national insurance during 2006-2007 (they are paying his NI contributions) so we are living on just my income which has to pay rent, council tax and the remaining utility bills. The iva is just in my name as was completed before we got married. Anyway my IP is fully aware of the situation and agreed to a payment break for Nov, Dec and Jan but now as I have had three breaks its classed as a breech of contract. I have been in contact with the IP just before xmas I was informed that they could go back to my creditors and ask for a 6 mth paymnet break or put forward a F&F, based in my orginal agreement they would have got back 45p in every £ owed. In oct i rec'd my annual report and after fees etc the ip had distributed 11p in every £ to them. I am in fear that my IVA is going to fail and force me to go bankrupt, if I had done that in the 1st place they would have rec'd 3p in every £ so they do stand to get more. My IP has been reassuring but i just cannot see them accepting a F&F that much lower..........PLEASE HELP ME!
hi chilli just wanted to give you a big welcome. i just wanted to say you are going through a tough time at the minute. there will be an expert along soon to guide you. if theres anything thats worrying you, you have done the right thing posting and we will all try to help you x
I take it your husband has had no luck on the job front? If not, I would go back to your IP and discuss your situation with them. If you are not in a position to make an F&F then there is no point your IP putting that forward.
If your IVA does fail, unless it is written in to your proposal, they won't force you to go bankrupt, you will just be back to square one with the creditors chasing you.
Do you have any assets? If not, then perhaps bankruptcy could be an option. It would be a clean sheet and you could both start again.
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
Your IP appears to have acted quite correctly here, and the cold reality of your situation is that if you cannot offer a sensible ongoing offer of payment the IVA cannot continue.
You need to work out your income and expenditure to see what (if any) money is left to offer to creditors, and your IP will advise you if they feel this is viable to go to creditors with a proposed variation at a newly convened meeting.
If this is not deemed suitable, your IP may not have the power to make you bankruptm, but this is an option you could pursue in order to avail of a fresh start - but if you have assets these may be at risk.
Thanks for all your comments. The IVA is only in my name. The one thing I am concerned about is if I go down the bankrupt route then my car would be taken from me as an asset, at the moment this is under finance until November 2009, once this is paid it was then going into the IVA. My car is the only method of me getting to work as the company I work for is out in the sticks with no public transport links. My IP has already been given my income and expenditure and I have no diposable income for my IVA any longer. The whole bankrupt thing is causing me the concern I jut cannot lose my car......
How much is your car worth? The OR would allow you to have a vehicle, but it must be of a low value.
If you have no income for your IVA, you wouldn't have any for a DMP either, so bankruptcy would appear to be your only option.
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
If BR is going to be an option for you, could I suggest that you ring Paul Johns at Reviva, who is a bankruptcy expert. You can find his details under the expert link on the left hand side of the page. Initial advice would be free.
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
