I’ve had the idea to fail the IVA

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bellshollsmarls
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by bellshollsmarls » Mon Jan 22, 2018 12:34 pm
I’m currently in an IVA and I’ve had the idea to fail the IVA, sell my house after the restriction is lifted, and then file for bankruptcy. Is this a feasible option? What are possible repercussions?
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kallis3
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by kallis3 » Mon Jan 22, 2018 12:44 pm
How long have you been in your IVA? You may find you pay across for 3 years if you declare BR and an OR could reverse the sale of your house if they think you have done this deliberately.

If you sold your house you could use funds gained to pay off your debts.
bellshollsmarls
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by bellshollsmarls » Mon Jan 22, 2018 1:03 pm
kallis3 wrote:
How long have you been in your IVA? You may find you pay across for 3 years if you declare BR and an OR could reverse the sale of your house if they think you have done this deliberately.

If you sold your house you could use funds gained to pay off your debts.



that's sort of answered my question. i'm looking for ways to finalise everything as quick as possible. ex is refusing to pay the debt with me, i'm essentially living hand to mouth. so, i'm toying with the idea of failing the iva, selling the house for a quick profit, and leaving the country to go back home, start over. this goes against all my values, but i don't see the sense in staying here, paying a debt i'm not entirely responsible for and not having a decent life. i'm not getting any younger and the thought of paying debt and not having a decent life for the next few years, depresses me.
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Lisa Thomas
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by Lisa Thomas » Mon Jan 22, 2018 4:09 pm
I doubt you would make any profit - your share of equity will either be held on trust for the IVA creditors OR be swept up in the Bankruptcy.

The costs in Bankruptcy are extremely high. £6k of taxes alone.

How much equity do you have, what are your total creditors and what have you paid into your IVA to date?
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Lisa Thomas
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by Lisa Thomas » Mon Jan 22, 2018 4:10 pm
...if anything you could instead offer a full and final to the creditors, equal to the payments they would have received had the IVA continued successfully to full term, from the proceeds of the voluntary sale of the house.

That way you might get something back.
bellshollsmarls
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by bellshollsmarls » Tue Jan 23, 2018 9:41 am
Lisa Thomas wrote:
I doubt you would make any profit - your share of equity will either be held on trust for the IVA creditors OR be swept up in the Bankruptcy.

The costs in Bankruptcy are extremely high. £6k of taxes alone.

How much equity do you have, what are your total creditors and what have you paid into your IVA to date?



i wasn't aware there were taxes involved, in bankruptcy? thought it was just the initial fee, and then possibly paying for a year (up to 3, i think)

what are the taxes for? how can there be high costs involved as i thought bankruptcy is the last way out, when you absolutely have no money.

i have enough equity to pay the debt, but it will not leave much for me to start over.
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Lisa Thomas
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by Lisa Thomas » Tue Jan 23, 2018 12:06 pm
How much equity do you have, how much are your total debts and how much have you paid into the IVA? I can then answer you about the Bankruptcy costs.
bellshollsmarls
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by bellshollsmarls » Tue Jan 23, 2018 1:29 pm
I have around 36k left. I’ve been paying for around a year, with all the fees involved, I’ve not made much of a dent in it. I’ve probaly paid around £5k of the actual debt. If my valuation was correct, I should make around £50k when the house sells.
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Lisa Thomas
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by Lisa Thomas » Tue Jan 23, 2018 2:28 pm
If you go bankrupt all of the £50k will go to paying off the debt, Bankruptcy costs and interest - there will be nothing left for you I'm afraid.
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Lisa Thomas
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by Lisa Thomas » Tue Jan 23, 2018 2:29 pm
Lisa Thomas wrote:
If you go bankrupt all of the £50k will go to paying off the debt, Bankruptcy costs and interest - there will be nothing left for you I'm afraid.


Probably best to make the F&F offer on basis of voluntary sale (but do not sell unless variation approved).

How much are your monthly payments?
bellshollsmarls
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by bellshollsmarls » Tue Jan 23, 2018 4:16 pm
Lisa Thomas wrote:
If you go bankrupt all of the £50k will go to paying off the debt, Bankruptcy costs and interest - there will be nothing left for you I'm afraid.



I can’t deal with this anymore.
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kallis3
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by kallis3 » Tue Jan 23, 2018 4:36 pm
Just keep going with your IVA and you will get there.
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Lisa Thomas
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by Lisa Thomas » Wed Jan 24, 2018 12:21 pm
This is why I do not recommend that you fail the IVA.

Options are continue the IVA as is OR put forward a variegation full and final offer to creditors to voluntary sell the property and pay them the same amount from the sale that they would receive if the IVA continued in the normal way.

i.e the amount of payments you have left multiplied by the monthly payments (plus presumed 12 month extension).

Feel free to call me if you'd like to chat this through as I understand it can seem confusing.
bellshollsmarls
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by bellshollsmarls » Wed Jan 24, 2018 12:54 pm
it's not so simple.

i'm currently on a 6 month pause, ends in Feb. was hoping to save money to make some changes to my property to get renters in. I've made an offer to them, for £30k, little less than the outstanding amount.. the firm is mccambridgeduffy. not even slightly helpful. no advice or any real assistance from them. i'd not recommend them at all.

i've sent them a valuation done by yopa. they're saying it's not a real estate agent. i'm in shared ownership, so only selling my 45% of the house. they say it's strange to only sell 45%. they keep asking for a redemption statement from the housing association, which I can't provide seeing as I don't owe them any money. on top of this, i was involved in a car accident late last year. turns out i took out insurance in my ex's name, purely out of habit of having used her bank account. which left me with a large bill (6K) i need to start paying back.

my ex still lives in the house, but isn't contributing to anything. i used to pay around £600pcm into the IVA, but because she's not helping me and because of the accident, I'll be lucky if i can manage paying £200 into the IVA. she won't leave the house so i can rent out the other rooms for extra income. i cant afford legal aid, CAB has been useless, they seem to know even less than i do.
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kallis3
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by kallis3 » Wed Jan 24, 2018 1:29 pm
Unusual for McD - they are usually quite good.
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