variation meeting........rejected

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floridaholiday

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Post by floridaholiday » Mon Aug 09, 2010 7:40 pm
Been struggling with IVA since November 2009. Lost job, had to move due to damp problems in rented property. Asked for six month payment break due to loss of job, managed to find some more work albeit not earning as much as before but cancelled variation for payment break and said would start making payments again, then had a car repair bill for £660 final Electric Bill for £450.00 and final water bill for £150.00 from previous property. Have not made payments since November 2009 so 7 months in arears. Had a variation meeting today for a further 5 month payment break to pay for car, elect, water, then reduce our payments from £275.00 to £173.00 for the remainder of the IVA which is now 72 months instead of 60. Said we would agree to extend due to the payments we are behind. Had our offer rejected today by our biggest creditor First direct. We owe them £15,700 original dividend was 25p in the pound reduced to 13p in the pound. Do not know what way to go now, meeting has been adjourned for us to make up our minds what we want to do. I do not see a lot of options left. Really do not want to go bankrupt as this will cost £1200 for us both. Have not got that money will take ages to save up and we could of made more payments to IVA for that much (HELP) any advice please
 
 

Shining

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Post by Shining » Mon Aug 09, 2010 9:07 pm
I'm sorry to read this too, bankruptcy if you've no assets to be affected by this seems an option to me too, it's not as bad as first thought, have a read of Skippy's blog.

Stopping IVA payments would give you a bit of income to save and it wouldn't be long to get the fees for BR sorted. All the best x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
 
 

MelanieGiles

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Post by MelanieGiles » Mon Aug 09, 2010 9:35 pm
Why does this creditor feel that you are not putting forward an appropriate solution, and was your suggested route endorsed in the IVA by your IP?
Regards, Melanie Giles, Insolvency Practitioner
 
 

Adam Davies

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Post by Adam Davies » Mon Aug 09, 2010 9:40 pm
Hi
What do first direct want you to do ?
Why not save for the bankruptcy, should take you seven months and if your creditors call just inform them of your plans.
Your other option is a debt management plan
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Andam Davies
 
 

floridaholiday

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Post by floridaholiday » Mon Aug 09, 2010 9:46 pm
Thanks for your replies. Apparently First Direct said that they were not happy that we had used a bonus payment to move house, when we had to due to damp problems. Not happy with 13p in the pound as apposed to 25p in the pound. We had a copy of the details for the variation. It was all fully explained, I do not know what they expect because surely bankruptcy would not be a better option for them.
 
 

Adam Davies

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Post by Adam Davies » Mon Aug 09, 2010 9:52 pm
Hi
They will get zilch in bankruptcy.
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Andam Davies
 
 

floridaholiday

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Post by floridaholiday » Mon Aug 09, 2010 10:07 pm
I really wanted to see this through to the end to say I have done it, but I really do not think it can work now. I suppose our only other option is to continue with original payments but this would cripple us each month, and not leave us much to live on. I am already suffering with anxiety and panic attacks and do not know how much more I can handle.
 
 

kallis3

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Post by kallis3 » Mon Aug 09, 2010 10:07 pm
And it will serve them right!
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
 
 

MelanieGiles

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Post by MelanieGiles » Tue Aug 10, 2010 1:11 am
Bankruptcy - whatever the ultimate consequences - must be a better option for you than struggling to pay contributions that are not afforable.

What a shame you cannot simply exclude this unhelpful creditor, and give the others the return they rightfully deserve. Talk about "Treating Customers Fairly"!!!
Regards, Melanie Giles, Insolvency Practitioner
 
 

kallis3

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Post by kallis3 » Tue Aug 10, 2010 6:48 am
Just to clarify that I was referring to First Direct and not the other creditors. It does seem a shame that they will suffer as well.
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
 
 

floridaholiday

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Post by floridaholiday » Tue Aug 10, 2010 9:03 pm
Had a sleepless night (although have not slept all nigfht for months due to anxiety)So worried going to make the wrong desicion, although bankruptcy does seem only option. How long will it take before we get hassled by creditors again. Meeting has been adjourned for a week for us to inform GT what we have decided to do. How long after this will the IVA be failed and passed back to us.
 
 

MelanieGiles

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Post by MelanieGiles » Tue Aug 10, 2010 10:18 pm
There is no real set timescale on this - but I am sure that GT will not want to delay closure, and there is nothing to stop you applying for bankrutpcy whilst the IVA is still running in any case.
Regards, Melanie Giles, Insolvency Practitioner
 
 

floridaholiday

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Post by floridaholiday » Fri Aug 13, 2010 3:34 pm
Update......Hubby has received a bonus of £1369.00 which is great due to our situation but am a bit confused. We have paid 50% of Bonus due to creditors off of our outstanding car repair, water and electric bill. Leaving £499 still outstanding to pay. I have received an E-Mail from GT who are basically saying we have got to hand over the other 50% to them to cover the remaining £499 and an additional £185.00 This then means they will have received all of the Bonus payment, can they do this. I also thought that we were able to keep the first 10%. They have also took it upon themselves to offer creditors a futher extension, when we have already offered a further 12 months making 72 months. I am having a bad day, it is five years ago today I lost my sister to a brain tumour at 41, feeling very stressed and upset
 
 

ontheroad

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Post by ontheroad » Fri Aug 13, 2010 5:48 pm
Hi there, sorry to hear of your situation, if you are going to fail the iva and go bankrupt, which appears to be the best option, why should you have to hand over the bonus as this could go a long way to paying your br fees, why not discuss this option with your ip, if iva is to fail it seems a waste to me. I know your agreement will demand payment of bonus in some shape or form but this sounds an exceptional case, surely they would want to try and assist you. I would certainly give it a try.
 
 

Skippy

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Post by Skippy » Fri Aug 13, 2010 6:19 pm
I agree with ontheroad. If you're definitely going to go BR I wouldn't make any more payments and I would use the bonus money towards your fees.

When I made the decision to go BR I didn't make any further payments to my IVA, I saved the money for my fees.
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