Sinking slowly...

[double-h]

My first post here after visiting every now and then and then leaving to try and resolve the ever present problem.

It is now evident that I can only look to the route of an IVA, but I do not know even if that can help us.

I do not think my disposable income will be enough to meet the requirements of an IVA.
We are currently in a DMP but cannot afford the repayments on that, not without going without food and relying on overtime.

My work terms and condition are looking that they are likely to change meaning no overtime and no shift allowance.

My partner is due to return to work after a maternity break but the cost of childcare will equal the income she will get so that makes the notion of returning to work pretty much implausable.

We are unsure whether we can change our mortgage to interest only and this would be the only way of making up the money required to enter in to the IVA.

What I fear is that we have the relief of being accepted for an IVA after applying only to fail after several months when the work conditions change.
The changes are not 100% guaranteed and I am not in the habit of betting, but I do think it's a case of 99.9% guaranteed.

So I'm coming here with little hope of a positive outcome but the shred of hope is there none the less.
I really do not want bankruptcy but feel it will be the only option.
We have no equity, no assets, and now what feels like little or no hope of a positive future. Only the knowledge that we are the cause of all this and want to get out of it by paying back but no means of doing so. I feel like my head will implode right now.

[nepensioner]

Hi Double-H
Welcome to the forum, you have come to the right place for general advice and loads of moral support. I couldn' survive without it. Its horrible when your thoughts take over and you end up going around in circles with no solution so would really encourage you to pick up the phone to 2/3IP's and they will give you free non judgemental advice as to what your options might be based on your personal circumstances, and then you will be able to plans for your families future, good luck

[double-h]

thanks for the reply Helen, I am feeling the life drain out of me at the thought of Bankruptcy, it's the complete unknown and the effect on my partner and our child that kills me the most. The notion that we could lose our home is devestating, I feel like I am swimming against an increasing tide.

Worst of all I feel that I have failed those who mean the most to me.

[nepensioner]

You are certainly not failing your family, when you have identified the problem and are facing it head on. Failure is doing nothing about it.
Take courage, pick up the phone and a solution will be found for you

[double-h]

Thanks folks for the words of support and encouragement, it really is a horrible time we are having, when we should be enjoying our young child and looking forward to the future. There is a very dark cloud over us right now though, and cannot see a break in the near future...

I am in talks regarding IVA but am playing a waiting game with the mortgage lender right now...I think it's the waiting that is the worst.

[Tina Shortland]

Hi double-h - sorry to read what a horrible time you are having - the black cloud will lift aty some point I propmise - then you can focus on your family.

If you are in talks about an IVA you should already fully understand the implication of Bankruptcy and the effects it copuld have. If all the options haven not been fully explained to you, you may want to seek further advice as many companies work differently.

It may be an IVA is not the best option for you, or it may be it is but either way, getting the full facts, feeling comfortable about moving forward and understanding what to expect is all part of what you are entitled to moving forward with something so important.

Do not feel rushed into a decision and speak to other companies if you need to.

Best wishes and we are all here to support you in whatever we can.

Regards,

[Goosed]

Hi double-h.
I was in the position of proposing my IVA with the knowledge that my employment terms and conditions were going to change in the not to distant future, with a drastic pay cut as a result. My proposal was structured with a stepped payment schedule, allowing for my pay cut when it comes. Maybe you could have the same implemented into an IVA proposal?

[double-h]

Well I am one step closer to knowing if an IVA will be viable as I now know I am not able to extend our mortgage, now have to see if it can be transferred to int only.
~With this in mind should I maintain DMP payments and proceed with IVA application ?
Also bearing in mind the possibility of shift allowance being taken away or reduced would the IVA be based around basic ( ie net less shift allowance) now, even though it might transpire that the shift allowance is reduced and perhaps not taken away completely?

I guess it all depends on whether we CAN actually get onto int only, the NRock person I spoke doesn't see a problem, but that is entirely different from an actual written decision.

Should we not able to then BR would be the only solution, I just need to know the real world effect of BR, on both of us, bearing in mind our house has no equity, our car is not worth £2.5K
and we have no precious antiques or other assets.
Would we have a payment order imposed on us that would be similar to an IVA? If so why would not an IVA be accepted......good grief, all these questions and we only have less than £50 to survive on until payday at the end of the month...

[kallis3]

I don't see any reason why you can't transfer to interest only, at least for the duration of an IVA. A lot of posters have done that, but of course it is down to NR.

As regards BR, if the house is in negative equity, as long as you keep up the mortgage and any secured lending on it, it should be ok. It would need someone to buy out the beneficial interest for £1 plus £211 costs. It would then be safe. The car may well be ok as well.

As regards payments, if you have any disposable income over £99 per month once priority debts have been paid, you would pay across between 50 and 70% for three years.

I do urge you to follow Tina's advice and speak to a couple more companies before making a decision.

[MelanieGiles]

How much do you feel you can afford to pay creditors on a monthly basis?

[double-h]

The figure depends on whether we are able to transfer the mortgage.
Hopefully it won't be too long before we get the papers to sign and apply.
All a game of waiting.

Thanks all, sincerely.
I'll keep you posted.

[double-h]

Good news on the mortgage front, we are able to switch to interest only.

Now we await further contact from the IP.

All details have been passed to them last week, i hear they are rather well regarded here.
Hoping for some good news as lately things have gone from bad to worse on that front.

[kallis3]

That's great news. Hopefully you'll get some good news from your IP soon.

[double-h]

Well, the news is that we could not go the route of an IVA, as the company dealing were having to include overtime as part of my normal income.

So we have no choice other than bankruptcy.
We waited about 18 months to find out we could not proceed.
very sad unhappy desperate and totally devoid of any positive feelings about the whole affair

We could quite happily end it all now.

[kallis3]

So sorry to hear that - have you thought about contacting another company in case they can help you out?

If your house is in negative equity then BR could be an option for you, but do take professional advice.