It's all a bit dire really - but here's the situation . . .
Sole IVA agreed in October 2009 for £19080 on a £45k + debt.
I have never missed a payment so far of £265.
Currently there is £16430 left on IVA balance (62mths x £265 - the IVA was initially extended by a year to 6yrs as a request by the creditors to get a better return).
In December 2009 my partner (of 10 years) left me with two children (2yrs and 3yrs old) and I got made redundant - but received no payout due to not working notice etc etc (I was falling apart after the breakdown of my relationship and went to live with my mum!)
So anyway - I have been managing the payments so far - but am struggling! My dad has offered to lend me some money to make a F&F but he hasn't got that much and can't lend me anywhere near that kind of money!
Has anyone got advice on working out how much is likely to be agreed by the creditors.
Oh and in terms of the house - there is an equity release clause on it - but my ex is staying in it and covering the mortgage payments - as it is in serious negative equity.
I am just getting beside myself - the breakdown I am struggling with enough let alone being a single mum of two very difficult toddlers - without the money problems on top!
Why is the avoidance of BR at the top of your list?
I think you need to discuss your situation with your IP, and hopefully they will be able to give you some idea as to what figure is likely to be accepted as F&F.
You would probably need up to £10,000 to achieve any realistic dividend and pay the costs of the IVA. If your father has money to help you surely it would be better for the family if you went bankrupt and he then helped you? I agree that a chat to your IP is a good idea as bankruptcy is not the end of the world.
I guess the reason I want to avoid bankruptcy is because there seems to so many more implications i.e. getting future mortgages, becoming a director (should I manage to return to work and make a success, future mobile phone contracts, renting and landlord searches etc etc.
I was under the impression that following yr 6 of an IVA I would become a 'normal' person again and that bankruptcy although may fall off your file - kind of sticks with you forever?!?!?
I remember being asked the questions many many times during previous applications for things such as car insurance / mortgage app etc . . .
"have you ever been declared bankrupt blahh blahh" surely you would have to say even after 6 yrs.
Also morally I feel I should pay back what I can?!?!?
I have spoken to my dad - and he has said he could lend in the region of 7K.
Have also looked through my paperwork and saw that the original proposal to creditors of 5yrs was £15500 (giving them 16p in the £) it was then extended to 6yrs = £19080 (not sure what the p in the £ is here)
There is not a huge difference to your credit file between IVA or BR so this should not be a major consideration. £7,000 may be enough but I am still unsure if it is the best option for you. However, if you want to make the offer to creditors they would be mad to turn it down so best of luck from me.
BR isnt as bad as you may think. It certainly doesnt have the same stigma it did 10 years ago,and an IVA would adversely affect your credit rating just as much as BR would.
No one will tell you what to do,but what not to do is avoid considering BR as it may well be your best,easiest and cheapest option to restart your life!!
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
In light of the circumstances you describe, I think a lower offer is worth considering - but this has to be based on what your father can actually afford, rather tha you coming up with figures which are completely unrealistic.
So sorry to hear about your current circumstances - things can only get better for you moving forward, and you have to keep strong for the children's benefit.
I have done a income / expenditure (not sent onto IP yet) it's not good - it basically says I cannot spare anything on a monthly basis.
I just can't see my circumstances changing in the next few years (going into decent employment i.e. enough to provide a decent monthly surplus) The children are so young - one of them is classified Disabled and as a result I receive carers allowance for them.
I have spoken to family - and although it would be pushing it - but I might be able to 'borrow' £6K. Has an offer this low ever been considered?
I'm not wanting to just get this cleared because I fancy it - it really is quite cruicial for me to clear this.
Oh - and another question before I go to my IP . . .
. . . if I were to put a proposal forward to my creditors and they did not vote in favour - can they demand I be made Bankrupt - or do I just keep on paying the IVA as before?
To answer both questions. The settlement offer would be based on a full and final or termination of the IVA. Given your circumstances it is unlikely that the IVA could continue anyway so it would be terminated. It is very unusual for creditors to seek bankruptcy as effectively they would be paying for it so you would be back to square one.
Your offer may well be accepted as the alternative realistically is bankruptcy and hopefully it will be accepted.
Sorry for being a bit dim - but I'm a bit confused . . .
So if they decline the offer - what would happen - can they MAKE me go bankrupt or would I get the opportunity to continue payments and make another offer?
I really really want to avoid bankruptcy - but the last thing I want to happen is to fail the IVA (I'm sure my family can help with monthly payments before this would happen).
In theory they could bankrupt you but there is not enough money in the pot to pay for this so they would have to pay for it themselves. This is highly unlikely so they would ask for the IVA to be terminated which means they could chase you again or you could make a different offer at the time.
