Hi Melanie,
Thank you so much for the prompt reply.
I have been away with work for a few days and this is the first chance I have had to reply. In answer to your question, it is true to say, the only face-to-face dealings I had with BE was when a representative of theirs came to our home to collect copies of bank statements, mortgage statements etc. When we started the IVA process, as is the case for most people, we felt that we had completely run out of options and the IVA seemed the perfect way to help us out of the situation and, at the same time, make us feel like we were at least making a positive step towards paying back some of the money we owe. In the early stages, everything was going well with regular communications from BE keeping us informed of the progress etc. The initial 4 - 6 week turn-around time actually lead in to approximately 3 months, during which time, we had attempted to pay token sums against our outstanding debts.
When the IVA was finally 'accepted', allbeit in my name and for my debts only, we were offered the choice of continuing with the successful application with all the incomes and expenditures based on our joint income/debts, or going through the process again with revised amounts but felt that we couldnt wait another 4 - 6 weeks. At the time we were advised that there was no guarantee that the application would be successful, potentially leading to a case where we would be back in the same situation as before we started down the IVA route only worse off having paid only token amounts where possible. I personally felt there was no option but to go through with their original proposal.
In answer to your other question, we have a house between us on which is a secured loan in addition to the mortgage, we both drive cars of no major value (although one of the stipulations I found out AFTER signing was that I had to either sell my car, keep 3k and give them the rest OR pay them 2725 by the end of the IVA period). I also received an RX1 form telling me that I had to sign the house over to BE until the end of the IVA. I was not aware this was going to be the case so there was obviously a communication breakdown somewhere. We have no savings, no other properties etc. The house, with the secured loan is in a negative equity situation. BE advised that if I were to file for bankruptcy, there would be a potential that my ex-wife's house could be called as, when I left, I signed the property over to her including the equity so that she and my son are secure. She now has a mortgage on the property in her name and has been paying the mortgage for approximately 3 years or so. I, for obvious reasons, didnt want my ex-wife to know my situation.
We have a loan secured against the property which was a prior attempt to resolve our financial difficulties. There is an insurance policy on this loan that matures at 5 years (apprx 12k) which we will receive. I have suggested to BE that I make reduced payments and bring the account up to date when this policy matures (Nov. 2008) and, at this time, the payment amounts should start to reduce on the secured loan giving us the ability to revert back to the full amount for the IVA. They have asked that I document the proposal and submit this to them so that they can approach the relevant companies with the details.
If I were to file for bankruptcy, what would the effects be? Would we lose the house? Would we still be able to keep the joint bank account etc.? I know this a sweeping question, but in essence, am I better sticking with an IVA which we cant afford or would I be better going through bankruptcy? An obvious concern is my partners credit rating. Is she automatically lilnked to me through the property or could her credit rating be disassociated from mine?
If I were to file for bankruptcy how likely is it that we would lose everything? I am fine with being the one who has the 'blackmark', but there are going to be times ahead in the future when we need to purchase something (my partners car is on its last legs and will need to be replaced soon)which may require an additonal injection of funds...
Once again, many thanks for the assistance you are offering. It is truly appreciated as is the service given by the forum and its 'keepers'..
regards,
Andy.
