Hello, myself and my partner both have IVA's which are linked on approximately £140000 of debt with Step Change, which have been running since 2011. We have just had a new addition to the family and my partner is due to return to work after maternity leave after a year off. She has been on a payment break as have i and payments are due to resume in April. I currently pay £329 and she pays £150 , i had a six year arrangement and hers 5. The problem is we cannot find. childcare for our two sons that fit around our jobs, i work shifts and she works 3 days a week pur oldest son who is 3 goes to playgroup four days a week and obviously our youngest needs round the clock care. My parents were going to help but they are in there 70's and don't think they can cope with both of them, her parents are a 4 miles away, and have no transport, child minders are upwards of £60 a day. So basically it looks as though she will have to give up work, if she does we cannot afford the IVA, if she stays at work we cannot afford the IVA due to childcare costs , what do we do, We gave up our house during the IVA due to mortgage arrears and a loan secured on it and now rent privately, we have one car and i use an old motorbike for work, so have no assets, the only option i can see for us both is bankruptcy.
Hi. I agree, on the face of it BR would seem to be a viable option. It might also be possible that your creditors might accept payments made to date as a full and final.
Is there any way you might raise a lump sum to sweeten that particular pot ?
Finally -- if you wish to continue with the IVA's and, therefore, need to continue working, have you investigated your entitlement to tax credits ? If you qualify you can get up to 70% of the childcare costs, with an approved childminder, back. The balance will have to be factored into your expenses.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Unfortunately any kind of benefits is out of tye question i earn on average £60000 a year so we have lost our child benefit, we live in London so our rent on a three bedroom house is £1500 a month with council tax @ 240 a month gas electric is £200 so before we start i have lost £2000 a month before anything else. No chance of raising any funds. I would be scared that they would take our car and my bike if we went bankrupt as they are our only two assets, we have nothing else.
I will talk to Step Change this week to try and sort something out.
Thankyou for taking the time to reply its very helpful.
i would go for bankrupt, fresh start a large weight of your mind, im still on the insolvancey register and i paid my iva back at 400 a month for 5 years. i wish id gone bankrupt id be in such a better position now, i owed over 25000. its a huge decision especially your situation but i got to say there would be only one option for me now knowing what an iva is like id never of taken one. get out of it and go declare bankrupt.
It seems to me that bankruptcy is the best - perhaps the only - option if you will be left with no disposable income. Are there any assets which could be affected - cars, etc?
And have you considered making PPI mis-selling claims for any insurance which was unwanted or forced upon you by your former lenders. With the level of debt you have, and investigation into this may well be beneficial - and if you are entitled to receive anything then this could be offered in full and final settlement.
We have a 12 year old car worth £1500 tops and an old 17 year old motorbike wortn at most £1000 that is it and obviously having two young children would they really take them. As for PPI i could never see the point of it and thought it was a con so never took it out , so we have nothing to gain trying that.
So that its, i cannot believe they would take our car as we need it with the children, my oldest has ongoing hospital visits so that would be especially harsh and pointless as at auction those two assets would probably reach £1500 at auction, what would be the point.
Thankyou very much for your help, i have just passed a new expenses form to step change highlighting the change in circumstances, i cant see where the IVA will progress but lets see what they say.
oh and i got the car valued by we buy any car and they will give me £1250 for it , the bike was valued by we buy any bike at £500 so even less than i thought , which is good in terms of assets but bad as thought they were worth more.
As i have found out we buy any car offer bottom black book value , which is what the dealers use so im guessing if they took the car it would go to trade. or auction where that is the what they will realise.
