www.iva.co.uk

Hi, this is our situation now
husband was made redundant aug 2010 IVA payments have been frozen for 6 months from that date so are due toresume in Feb 2011 but husband still has no job and is still claiming JSA, does anyone know what will happen now as i am thinking that his creditors will make him Bankrupt, if this is the case how long does it usually take or is it better for my husband to delare himself bankrupt. Do I need to start looking for alternative accommodation for us as we have 3 young children and dont want to end up anywhere "dodgy", thanks

It's unlikely that his creditors will make him bankrupt unless there is something in his proposal about it. Have a read and see.

He can do it himself and it will cost £600 you need to have the IVA failed first.

Do you have your own property or is it rented?

hi kallis,thanks for your reply.

he owns the property but is 2months in arrears due to his redundancy and i believe it is in negative equity too.
even if you are claiming JSA is it still this much as i know it used to be a reduced rate.

I think they knock off £150 but not sure what benefits would come under that.

It may be possible to get a further payment break while he continues to seek work. He should make sure he gets his full entitlement including any mortgage assistance as the home is normally the most important thing to protect.

I doubt if creditors would make him bankrupt as there is nothing to gain so it may be worth offering a full and final settlement based on what he has paid to date. This of course depneds on how lomng he has been in the IVA but we have closed down cases for pennies in the £ when there was nothing else to offer and the client had done no wrong.

If the property is in negative equity, it is unlikely to be affected by a bankruptcy. Have you tried the Mortgage Protection Scheme to see if you would be eligible for any assistance towards the mortgage payments, and why is the Unemployments Benefits Office not at least covering the interest payments on the mortgage until he is able to return to work?

hi melanie,we have mortgage protection insurance until july but thought if he went bankrupt he would lose house anyway especially as we are already 2months in arrears and have had payment breaks before during the IVA due to shorter working hrs .