IVA..Unsure if I'm doing the right thing. Help? Tia.

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Phantom1
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by Phantom1 » Sat Apr 01, 2017 11:00 pm
Firstly Hi, New here. :D

I'll sum things up in a nutshell, total debt 26k (25k from a previous business account and personal credit card I used to set the business up with from) I've had a demanding letter come through on Thursday (just gone) and that has made me start ringing around looking at options (as I have 10 days before baliffs start sniffing from what the letter says) and after talking to a insolvency practitioner and they have convinced me to go with a IVA (everything explained clearly and they have really gone out there way to help as they know its an urgent case to the point an IP rang me the following day to get things in place urgently.

I am a carer for my partner who is disabled and we live in council accommodation, no dependants, my wife is adamant shes paying nothing towards the debts or I'm out on my ear, she is sick and tired of the whole thing. (my debt that has haunted us for over 10yrs) I originally set up a payment plan back in 2008 through cccs, but the company that we were paying dissolved and I have no knowledge of what I paid or where it has gone, (debt since then has been passed from pillar to post, hence I've just got tired of explaining things and ignored all demands) I paid it for 3 yrs from what I can remember it was only about 15/20 a month or something along them lines but back then we had 2 dependants, they have now grown up and fled the nest

Iva or Bankruptcy? I'm more worried that something will go wrong with an IVA (not from my part) and it all going wrong and me wishing I'd just gone bang and been done with it. (I can probably get the money for a Bankruptcy from a family member if push comes to shove ) just not sure what to do for the best! :/

Hope this makes a sense to some degree as I'm in a confused state myself.

forgot to add, £80 x 60 payments, the rest written off under IVA, (if accepted)
Last edited by Phantom1 on Mon Apr 03, 2017 2:26 pm, edited 1 time in total.
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luluj
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by luluj » Sun Apr 02, 2017 7:08 am
Welcome to the forum. The decision of iva v bankruptcy is a difficult one for us to say either way without the full facts to consider.

My gut reaction to your post is why would you not consider going bankrupt - you don't own your own home so haven'% got that headache.

Your wife may not want to be part of your debt solution however in either option she will be as her income will be taken into account when discussing the payment level that can be agreed.

Difficult time for you but it will result in being debt free.
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Foggy
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by Foggy » Sun Apr 02, 2017 7:29 am
I agree that, on the face of it, bankruptcy might be the best -- get it done and dealt with option. You might get three years payments at a similar level to those in an IVA, but less hassle going forward.

That said I feel you should still discuss all options with at least one other firm as a matter of urgency -- as they do all operate slightly differently.

Your DMP with CCCS --- they didn't dissolve, as such, but rebranded and are now StepChange (one of the two main "charity" insolvency firms). The other is Payplan, which I would suggest you don't go with, as they will roll your partner into the payments!
Phantom1
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by Phantom1 » Sun Apr 02, 2017 12:43 pm
Foggy wrote:
I agree that, on the face of it, bankruptcy might be the best -- get it done and dealt with option. You might get three years payments at a similar level to those in an IVA, but less hassle going forward.

That said I feel you should still discuss all options with at least one other firm as a matter of urgency -- as they do all operate slightly differently.

Your DMP with CCCS --- they didn't dissolve, as such, but rebranded and are now StepChange (one of the two main "charity" insolvency firms). The other is Payplan, which I would suggest you don't go with, as they will roll your partner into the payments!


"You might get three years payments at a similar level to those in an IVA" that would completely knacker us up borrowing the £680 (from a family member) then finding out we would have to pay the same as what the IVA would cost, if not more for 3 yrs :(

Just to add, I have been previously bankrupt 25yrs ago (bad advice when I had nothing and lost my job) all over a thousand £, (silly I know, young and dumb and badly advised!)

Thanks for the advice.
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Foggy
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by Foggy » Sun Apr 02, 2017 1:44 pm
In that case, maybe the IVA is a better option ( depending on all of your circumstances). But a payment level of £80 a month is pretty much the minimum, so won't leave you any "wriggle room" if things go pear shaped ( no scope for a payment reduction ) and, of course, the creditors have to agree to such a low return ( half of this would be eaten up in fees) .
Phantom1
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by Phantom1 » Sun Apr 02, 2017 2:52 pm
Thank you Foggy/luluj, I thought you just paid the 680 in a Bankruptcy and that was that as we have no assets, but then Foggy saying we could possibly face paying the same as an IVA if not more for 3 yrs has really put a cat amongst the pigeons as I was unaware of this.
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Michael Peoples
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by Michael Peoples » Mon Apr 03, 2017 8:38 am
If your entire income is made up of state benefits then you should not pay anything after the bankruptcy order is made.

'31.7.40 IPA or IPO should not be sought where bankrupt’s sole income comprises state benefits

(Amended March 2014)

An IPA or IPO should not be sought where the bankrupt's only source of income is state benefits. In the context of this chapter "state benefits” refers to all forms of income supplement and support provided by central or local government including, but not limited to: income support, job seekers allowance, disability living allowances, incapacity benefit, industrial injuries disablement, council tax benefit, housing benefit, state retirement benefit (state pension), child benefit and all forms of tax credit (child, working and pension). Payments of a War Disability Pension (Naval, Military and Air Forces Etc. (Disablement and Death) Service Pensions Order 2006), the bankrupt having been injured on active service, should be regarded as a state benefit. There is no requirement to undertake an assessment of real disposable income where the only source of the bankrupt's income is state benefits. In all other cases an assessment should be made even if part of the household income is derived from state benefits. '

I think you should seriously consider bankruptcy so a chat with the CAB may be a good idea. They are entirely independent and well known for good advice.
Phantom1
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by Phantom1 » Mon Apr 03, 2017 10:17 am
Thank you Michael Peoples, This piece of info I was unaware of, my wife gets her PIP (hers) and ESA (for us both) and I get a carers allowance, that's it! No other source of income (I'm a full time carer) what effects on Bankruptcy would it have with me going bump 25 yrs ago (previously Bankrupt for very little money About 1200, as I said "previous bad advice when I was young")
Phantom1
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by Phantom1 » Mon Apr 03, 2017 12:55 pm
I think My final question on this is really, would the Official Receiver touch my carers allowance, as with the carers allowance they take £36 of the £56 awarded from carers off the ESA anyway, leaving me technically £20 a week that the state allows you to keep. this is the niggley bit, but would that carers be viewed as something for me? I'm lost, if the above makes sense. tia
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Lisa Thomas
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by Lisa Thomas » Mon Apr 03, 2017 1:49 pm
If you have no assets to protect and Bankruptcy won't affect your employment and you do not need to be a Director of a Ltd Company for the year whilst you are Bankrupt then on the face of it BKY seems the right route for you to go.

Why did the IP advise you that an IVA would be better than BKY for you?
Phantom1
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by Phantom1 » Mon Apr 03, 2017 2:13 pm
I've been on to the official Receivers today and they can't answer whether the carers would be taken into account (depends on what side of the bed the OR got out of to what I'm hearing) but I've looked more in depth and the carers allowance is supplied by central government and its also on the Gov. website that carers is in the same block as ESA anyway "State Benefit" (so technically it should not be allowed to be counted in a IPA/IPO as its a state benefit)

31.7.40 IPA or IPO should not be sought where bankrupt’s sole income comprises state benefits https://www.gov.uk/income-tax/taxfree-a ... e-benefits

Lisa thank you for your reply, I can't answer that myself.
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Michael Peoples
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by Michael Peoples » Mon Apr 03, 2017 2:34 pm
The previous bankruptcy should not be an issue so personally I would petition again.
Phantom1
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by Phantom1 » Mon Apr 03, 2017 2:46 pm
Thank you Michael Peoples, you firstly got me sniffing and I then secondly rang a Bankruptcy adviser to whom I would also like to thank "Daniel Griffith" who spent some time with me on the phone, hence I'm now coming to the point an IVA is possibly not for me, but I'm still not 100% as it would appear I may have to get tough with the OR if they try to come it and say I have disposable income (Carers) could just be a grey area I've fallen into as most technical terms go. (or those that are prepared to argue it)
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kallis3
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by kallis3 » Mon Apr 03, 2017 3:18 pm
Be wary of thinking of paying a BR advisor when it is easier and cheaper to do it yourself.
Phantom1
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by Phantom1 » Mon Apr 03, 2017 3:26 pm
Ty kallis3 , He was most helpful and told me I could do it myself, as he had seen my topic of conversation on here, I would really like to express my gratitude to the help of this forum (Members) as I would probably be the same as most people scared out there and just gone with the flow, I'm not out of the woods yet (so to speak) as I'm going to see what other people have to say. (heeded folk's advise and not gone with the first thing I hear) before I commit! but the clocks ticking.
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