I am in a IVA which I have been in for 50 months I have tried to end IVA with DFD and had my mortgage valued and DFD refuse to end it and wish me to continue for another 22 months at high instalments which I am refusing to pay. I am fully expecting that my creditors will make me bankrupt as DFD are stating that I should pay the extra instalments despite me explaining to them position with costs. However I need to move house because of other reasons and have a steady job with the government and have always paid by mortgage earnng around £30,000. What are my chances of renting a property will they allow me to whilst in an IVA or ultimately bankrupt?
Hopefully Declan who posts on behalf of DFD will pick up on this today and maybe you can come back and answer Melanie's questions enabling her to give you some advice. x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
If you are declared bankrupt the likelihood is that you would have to pay some IPA on that salary for three years so it may be worth paying for less than 2 years to complete your IVA. If your living costs increase your IVA payment can be revised.
Plus your credit record would be shot for a further six years from the date of the bankruptcy hearing.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
right this minute no job with the government is safe - therefore I would speak to your IP and explain in full your reasons for wanting to end your IVA early, and if necessary check your clause in your chairmans report as there may be something that says if equity cannot be released additional payments may be expected to compensate.
You have come so far, I doubt very much they want to see you go bankrupt so hopefully a solution can be found.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
I have about 15000 equity in the property at the moment I want to move to rented accommodation but wont be able to afford the rent if I am still paying dfd an instalment of 300 per month. DFD refused to put this to the creditors as a full and final settlement.
I have stuggled to get by on basics with the money they have left me I have a daughter just about to start college and also a single parent with no income from ex.
I am not concerned about having to pay IPA once bankrupt as on my current costs there will nothing left to pay and this is what I am telling DFD at the moment. However DFD guidelines say differently and they expect payment regardless. I need to move home because of my ex harrassment so that is something that needs to happen sooner rather than later. Renting is very favourable but need to know if renting is possibe when in IVA before Creditors make me bankrupt. I have some friends who have been bankrupt and through the process living in rented accommodation in the time that I am still trying to get through this IVA and paying through the nose. There does not appear to be much of a difference when judging how bankruptcy and an IVA impact. Credit status is impacted for longer than the period of the IVA so you gain nothing from remaining in an IVA in that respect. I know individuals who have tried IVAs and also been bankrupt when you are asked to pay IPA when bankrupt you can also challenge this as in an IVA. You do no always pay what you are asked to pay again this is negotiated.
Would be very interested in hearing from Declan at DFD as need to fully appreciate what I really gain from being in a IVA other than bankruptcy. After talking to others involved in the process I remain unconvinced that there is much of a difference. Once credit status is impacted I believe that is something that stays with an individual for many years unless someone can tell me differently.
Happy to listen to anyones views on the benefits of remaining in an IVA other than bankruptcy when all your equity will be passed to creditors and you have nothing to put towards another property when moving home. With the added pressure of an increase in your morgage payments.
On an income of 30,000 pounds I would be surprised if you didn't get an IPA in bankruptcy & the six years starts over again. You have less than 2 years to go in your IVA as opposed to 3 with an IPA. You may also find it more difficult to rent as a bankrupt. All these things need to be carefully considered but if you rent & your costs go up then your IVA payment should be adjusted.
How long was the IVA meant to be over? Do they want the extra payments as you are unable to release the equity?
It would be a pity to go for over 4 years in an IVA to then decide on bankruptcy. I agree there is little difference to your credit file,no one will touch you with a 10 foot barge pole either way,but remember that 6 years after your IVA any defaults will drop off the file. If you went bankrupt tomorrow you would have a poor credit rating for a further 6 years.
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
Choosing an IVA over Bankruptcy can also be a moral thing as well. I chose an IVA because I borrowed the money in the first place and felt personally that I needed to try and pay at least some of it back.
It is an individuals decision at the end of day with regard to which route they take.
Hi Guys
Apologies, I've only picked this up now. From looking through the postings, it may be an option to look at a variation if you are struggling to survive financially each month Gail and, given the likely increases you may face with your child, this is likely to increase. I cannot say for certain what the best resolution is without knowing the case details so if you could email me your details (email address can be found in my profile under the experts section) I will look into this for you. If bankruptcy is something you want to consider further, we will be more then happy to provide as much information as possible and guide you as best we can.
As I mentioned, do email me and I will help get this resolved for you.