What do we do? We have had an IVA for 3 years. 5 months ago my husband lost his job so therefore our income has been reduced by half. We have had 3 months payment break from the IVA which is coming to an end. My husband has not been able to secure a further position yet probably due to his age of 60. We have a mortgage on our property which we have been able to pay interest only and therefore not in arrears. Our property is worth about £130k of which we owe £75k on our mortagage. Last years balance on our IVA was £65k. Would we be better to declare bankruptcy? would we loose our house?
Do you work? if so, i would speak with your IP and see if he can go back to your creditors and ask for your payments to be reduced untill your Husband finds employment.
Your interest in the property - ie the equity would be transferred to the ownership of a Trustee in bankruptcy who would want to realise this and pay the monies over to your creditors. I think you may have to face selling the property to deal with your debt in the event that your husband cannot find a job in the short-term - as creditors are very unlikely to accept the contributions they have received to date when you have such a lot of equity in your home.
You could discuss proposing a variation with your IP ro extend the payment break whilst Mr is looking for work and if at the end of this period the situation is unchanged, offer to sell the property and pay the sale proceeds maybe as a full and final settlement of the IVA debts.
If you will be struggling to maintain the mortgage payments - as well as other h/h expenditure on the one income - it may be in your best interest to consider cutting your losses now. A large chunk of the equity in your property will already be expected to be realised for the benefit of the IVA. If you proceed to BR, the Trustee will be realising the equity.
Kind regards,
Angela Rosler
Insolvency Manager
Helping people with their debt problems for nearly 10 years.
Contact me directly for free, impartial, confidential help and guidance.
Just to let you know We have paid £717 per month for 3 years on IVA at the moment I am earning £1300 per month and my husband has £500 per month pension which is!! £1800. our outgoings are £1740. This is paying interest only on our mortgage which is £400 pm. but to pay the full amount would be £747 including the IVA would be £1464 so we have £328 to pay gas Electric, eat, animals & Live. Please let us know if we would be better apply to declare bankrupty. We are not living now just existing. We have both worked all our lives and never claimed any benefit. My husband is 60 and a very experience building surveyor but there are no jobs for a 60 year old. If we sell out house and pay off our creditors weh ave no where to live.
How do people on benefit manage. We are honest people and we have got our selves into this mess. My husband gave up working to look after his daugher who was very ill. She died in July aged 28 and now he needs a job so that we can pay our IVA. Eveything we do seems to be negative. Please Please would it be better to declare bankrupt so at least we can "Start again" if we can.
Yes I do work and earn about £1300 pm. My husband recieves a pension of £500 pm but our IVA is £717 pm and our mortgage is £727 pm which leaves us £346 pm to pay gas & electric and to buy food clothes etc so our outgoings are more. If we declare bankrupty and pay our creditors off we will have no where to live. What can we do?
I am so sorry to hear about your daughter. What an awful time for all of you, and please accept my very deepest sympathy during what must be very difficult times for you all.
Bankruptcy might be an option for you, but I feel that perhaps a realistic reworking of your IVA contributions might be more sensible. Your IVA payments do look incredibly high compared to your income - how much do you feel you can realistically afford right now?
