its all come tumbling down!

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mrbungle

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Post by mrbungle » Tue Oct 25, 2016 2:34 pm
hi all

need some urgent help..I've been through the mill again at the family court and I've lost and now they have placed an attachment to earnings on me...I earn around £2200-£2500 per month after tax...my bills are child maintenance £550,spousal main £100, attachment to earnings £500 on £10k amount to the ex wife), rent £370, minimum credit card fees £877..on £37k amount 5 cards)..i still am left to agree a final amount of outstanding costs but that will be around £10k to the ex wife..thats without any other living expenses!...I will also loose 2-300 per month if I go BR as its for the Army so my wage will be just under £2.2k per month...any advice would be greatly received. Initially I was looking at an IVA...I have no assets or savings etc
 
 

kallis3

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Post by kallis3 » Tue Oct 25, 2016 2:42 pm
Hi - I know you spoke to VB, did you go ahead with an IVA?

Will you be ok with the Army and bankruptcy?
Sharing from experiences of dealing with debt
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mrbungle

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Post by mrbungle » Tue Oct 25, 2016 2:47 pm
hi...I couldn't do the IVA as the Ex is the main holder of debt and she wouldn't play ball and wanted the court appearance today...I will have to leave as its debt they don't like. Its only a hobby so I can live with that...just wondering what's best to do next...I suppose its cut up the cards and write to them all offering them a £1
 
 

Lisa Thomas

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Post by Lisa Thomas » Tue Oct 25, 2016 3:08 pm
I'm not sure you can go Bankrupt in the Army.

I think as the divorce debt survives Bankruptcy she wouldn't get a vote in the IVA but perhaps Michael will be along shortly to clarify/correct me.
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk
 
 

Michael Peoples

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Post by Michael Peoples » Tue Oct 25, 2016 3:15 pm
The costs of the legal battle should be unsecured and as such dealt within any IVA or bankruptcy. Any debt to the ex is outside of the insolvency regulations so she would not be voting in any IVA.

I am also confused as to whether you are full time army or TA but I can only assume your main income is not from the Army otherwise this would be more of an issue.

If you are going to leave the Army then the whole issue is moot. You can petition for bankruptcy, there is no wages to be deducted from, the legal costs are wiped out and your ex gets nothing. You get a job paying enough for your living costs and move on.

If this is not the case and you have a job outside the Army then perhaps that is still the correct option. An IVA may be something you could propose but if there is bitterness some creditors may move to reject but if you are confident about the way forward it could be acceptable.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

mrbungle

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Post by mrbungle » Wed Oct 26, 2016 7:59 am
hi..sorry yes i should have made the point more clear...yes im in full time employment and im in the army reserve 19 days per year, my main employment wont be affected by any of this...IVA tried to pursue an IVA but the Ex has around 30% of the debt owed to her so she would vote against it as she's hell bent on getting everything back plus interest..so are you telling me i will owe her still the lump sum of £2750 but the costs awarded against me will be wiped even though this has been to the civil court and is now part of an attachment to earnings?...the judge said this will take a couple of months to process...also the remaining costs amount has not been agreed...would that just be wiped out...thanks for you help on this as im in a bit of a panic and cant even think straight!...i could do with some positive news
 
 

mrbungle

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Post by mrbungle » Wed Oct 26, 2016 8:01 am
Lisa

yes you are correct and also the judge didn't mention/realise you cant do an attachment to earnings on a member of the armed forces...that could make things interesting!
 
 

Michael Peoples

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Post by Michael Peoples » Wed Oct 26, 2016 9:00 am
Money owed to your ex would form an expense in an IVA and not a debt. She would need to agree a set monthly figure while allowing you to still have enough to address the other creditors. If she was also awarded costs against you these costs could be just unsecured but I would suggest legal advice to be sure of your ground. The solicitor and IP would need to see a copy of the court documents.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

mrbungle

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Post by mrbungle » Wed Oct 26, 2016 9:34 am
ok thank Michael..i wont have any docs from the court as its going to take a couple of months to process the judge said.....my financial meltdown is imminent..she will want the £500 the judge awarded her...when i spoke to VB the IVA payment amount was around £480..i dont want to do BR or IVA if im still going to be stuck with this debt after its finished
 
 

Michael Peoples

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Post by Michael Peoples » Wed Oct 26, 2016 9:48 am
If the IVA payment made no allowance for repaying your wife and included her as an unsecured creditor in the IVA then this could be changed. For example you could pay her £200 per month off the arrears and pay £280 into an IVA and hopefully that would be enough to keep her happy. Alternatively you could use the entire £480 to repay the maintenance arrears and petition for bankruptcy. You may need to justify why you are doing this to the Official Receiver but where there is a court order it usually takes precedence over insolvency.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

mrbungle

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Post by mrbungle » Wed Oct 26, 2016 3:15 pm
thanks for the replies...so whats best...just fill it in and apply or go and see CAB?...or do i go down the IVA route...confused.com...do i need to wait for the paper work from the courts or the attachment to earnings to kick in?
 
 

Michael Peoples

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Post by Michael Peoples » Wed Oct 26, 2016 4:10 pm
The CAB can be good for help with bankruptcy paperwork or you can complete the papers online yourself. However it may be worth seeing what comes back from the courts first and then take advice.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

mrbungle

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Post by mrbungle » Tue Nov 01, 2016 10:39 am
hi all

just an update...ive got a telephone interview on Monday with a debt advisor from the CAB...ill take it from there
 
 

Michael Peoples

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Post by Michael Peoples » Tue Nov 01, 2016 11:46 am
Best of luck and I am sure they will be able to advise and help properly.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
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