www.iva.co.uk

Hi All thanks for the previous advise re applying for a variation.

It seems that I have just done our income and expenditure and only have realistically £170 pounds a month to pay towards creditors!. I really cant see this being accepted, as we were previously paying £521 pounds. I am also concerned about our income decreasing yet again after the variation as my husband works for Toyota and they face very uncertain times.

Obviously it would be great if we could continue with our IVA with the payments of £170 pounds however I like to to be prepared for the worst. So does anybody know exactly how much it would cost for us to go bankrupt should we have no choice its for myself and husband?. Also should we have to go bankrupt we would be proposing that a family member buy our beneficial interest in the property which is likely to be nothing, as we may be in negative equity so what would the costs be involved with this?.

Also would it be wise to obtain a house valuation beforehand to take into court with us?.

Once again any advice is much appreciated.

Thanks again.

Hi,

You need to run the figures past your IP and see what he/she says. If the alternative is BR, they may be ok with it.

As to the costs of bankruptcy, it is £510 each to petition so I would check in your proposal to see if there is anything in there which says that if there are sufficient funds in your IVA they will petition for your bankruptcy for you.

As to the BI in your house, I believe that is something you sort out with the Official Receiver after the court case. If you have someone who can buy it out it will cost them £1 plus £211 costs.

I hope it doesn't come to that though.

It must be worth doing a variation until your income prospects improve - speak to your IP and see what he/she suggests.

Thanks a lot, i also hope it does not come to bankruptcy but i just want to be aware of all involved should the worst happen. I suppose we could be lucky and the new payment be agreed.

Fingers crossed that it is.

Let us know how you get on.

If you are going to seek a variation, do be sure that it is something solid you can stick to into the future. Given the uncertainty of your husband's employment, you may be biting off more than you can chew, but if you are confident of being able to make payments of £170 into the future personally I would give it a go if I were your IP.

How long have you been in your IVA to date?

Hi thanks again for all replys, we have been in the IVA for 3 years in August however we have taken a 6 month payments holiday during this time so this will add another 6 months to the term of our IVA.

We have sat tonight and worked out how much we can afford based on worst case scenarios and if we were to be approved to pay £170 pounds then we are as confident as you can be that we can stick to this for the rest of our IVA.

I wish you the very best of luck, and creditors will still get a better return than if you were to be made bankrupt.

The other option with what you are proposing is to offer say a further period at that level of £170 to minimise the cut in the original dividend - that might also be a sweetener to creditors to accept such variation.

Thankyou so much for all replys.