| T O P I C R E V I E W |
| Hugo |
Posted - 16 January 2010 : 20:44:13
With debts of £46000 I've just started an IVA. Paying £600 pm
Although I researched all types of debt solutions and chose the IVA I am now having doubts about its afordability/restrictions.
I was worried sick at the time and was just relieved the IVA was accepted, but feel I was a little hasty and concidering I have no
assets was wrongly advised.
The IVA's pro's were sold to me at the expense of the con's!
I have also found my 'case officer' vague and evasive when asked about provisions for future expenditure I may encounter (daughter may go to university in 2 years)
My question is - Could I deliberately fail my IVA (so soon) and file for bankruptcy?
Would the IP do the filing?
Thanks |
| 15 L A T E S T R E P L I E S (Newest First) |
| chester2005 |
Posted - 21 January 2010 : 19:24:35
you also have to consider what the individual firms do for their money and how they are asking to be paid.
Some less reputable companies will ask for the payment of their fees on a credit card pre BR
other companies will take their fees from selling assets like a car worth more than £2000 and replacing it with one for £2000 or selling spare assets like motorbikes, boats or business stock
therefore not actually costing you anything
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurhman)
RevivaUK and Paul Johns helped me through it all i can't recommend them enough!! |
| Hugo |
Posted - 21 January 2010 : 16:19:34
Thanks for all the replies.
Have had a look at the forms - the 30 pager, but most of the categories are not applicable to me anyway. I'd have to give the details to the firm, so might as well have completed myself!
As has been suggested though, may need help filling allowable expenditure and expert angles are always useful!
Regards |
| chester2005 |
Posted - 21 January 2010 : 11:56:14
Good companies (like RevivaUK )provide a much greater service then just filling out the forms.
Being there in court, at the OR interview, being at the end of a phone line nearly 24 hours a day to calm your fears and answer questions and they do plenty more than that besides.
I can't speak for other companies but i am sure that there are similar ones to RevivaUK
at the nd of the day it is "horse for courses" some people are quite happy to do it themselves but others would rather have the peace of mind that the job is being done right by the right professional people who you have faith and trust in and yes you are paying for the priviledge.
If having an expert saves you eg. £100 a month in an IPA over 36 months (because they ensure the maximum allowances are claimed for) the money saved more than coverss the costs incurred
each to their own i do not regret paying RevivaUK for ALL the assistance they have given me..... Money well spent IMHO
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurman)
RevivaUK helped me through it all i can't recommend them enough!! |
| xmas baby |
Posted - 21 January 2010 : 11:40:03
Hi Hugo,
To be honest I don't think it is worth using these companies. The forms can be a bit daunting at first, but if you sit down and take your time, there is no reason why you can't complete them yourself. I was dreading it when I did it, but it really wasn't that difficult and you can always ask questions on here if you get stuck. I must admit, my debts were quite straight forward (credit cards and loans) and I didn't have any assets, apart from a car. Maybe if your case is a bit more complex, then these companies might be a good idea, but generally I think most people should have no problem completing the forms by themselves and thus saving a great deal of money in the process.
xmas baby |
| gettingoutofdebt |
Posted - 21 January 2010 : 06:45:03
quote:
Originally posted by Hugo
Been ringing round a few BR Specialists for advice/Services.
What do people concider good value for money when using these services?
I know you can run by yourself, but is the 'smoothness' worth it?
Was quoted £1000 today + the court costs!
Also how does the transition/freezing of bank accounts work?
I only have one at present, a simple Abbey under the IVA,
My account gets frozen - do I already have another waiting for my next pay date, or do I have to open one after?
many thanks
Regards
1k + court costs is very high. Personally I do not think that you would need any assistance with the BR forms as they are straightforward. You will have the advantage of having all of the information regarding your creditors to hand as you would have needed this for the IVA.
As for Abbey bank account it will be more than likely be closed even if it is a basic account. Most people, myself included, use the Co-op Cashminder account. It can be opened over the phone and is very BR friendly so when you call just tell them you are planning to declare BR and there won't be any problems.
It can take up to 10 working days to fully open the account and receive the details so the sooner you open it the better. It will also mean that you can transfer any DDs, salary/benefit payments to that account before you declare BR so there won't be any delays in payments. |
| Reviva UK |
Posted - 20 January 2010 : 23:02:59
You can also give Vikki a call on the Bankruptcy Helpline number as they will prepare Court forms for £350.
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
Real People ..... Real Debt Solutions |
| Niobe |
Posted - 20 January 2010 : 23:00:20
There are companies that charge a lot less than £1000 to help you with bankruptcy.
Buckle your seat belt Dorothy, 'cos Kansas is going bye bye.
Jan
xx |
| Reviva UK |
Posted - 20 January 2010 : 22:54:17
Hi Hugo
if you are going to pay for assistance then that support company will hold your hand and let you know what to do when. That is one of the reasons you are chosing to get help.
You should also consider what you get for your money and what the overall package is going to achieve for you.
Good luck
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
Real People ..... Real Debt Solutions |
| Hugo |
Posted - 20 January 2010 : 21:43:38
Been ringing round a few BR Specialists for advice/Services.
What do people concider good value for money when using these services?
I know you can run by yourself, but is the 'smoothness' worth it?
Was quoted £1000 today + the court costs!
Also how does the transition/freezing of bank accounts work?
I only have one at present, a simple Abbey under the IVA,
My account gets frozen - do I already have another waiting for my next pay date, or do I have to open one after?
many thanks
Regards |
| Niobe |
Posted - 18 January 2010 : 09:33:50
Let us know how you get on.
As regards pension contributions, I was allowed to keep paying mine.
If you're not happy with your case officer, you can always email the IP direct via this link:
http://www.insolvency-service.co.uk/newipsearch.htm
and tell him of your concerns.
Buckle your seat belt Dorothy, 'cos Kansas is going bye bye.
Jan
xx |
| Hugo |
Posted - 17 January 2010 : 20:56:40
Many thanks all.
It helps tremendously to hear of others similar experiences and outcomes.
Will take some soundings tomorrow on the possible way forward.
Regards
|
| gettingoutofdebt |
Posted - 17 January 2010 : 09:16:27
Hi Hugo,
You sound like a lot of people who are struggling with an IVA and then look at BR as a possible way to end their debt problems for once and all.
BR is definitely less restrictive financially and you would have disposable income (DI) each month that you could do with as you please. If you decided to declare BR and DI was £600 (the amount that you pay as an IVA) then you would pay 70% of this (£420) and could do what you wanted with the additional £180 each month. There are some expenses that aren't allowed in BR (social, contingency, xmas/birthday presents) as this is expected to come out of the left over DI amount after paying an IPA (Income Payment Agreement) so your DI may be a bit higher than £600.
If you did declare BR then you would definitely lose the car. You are allowed a car up to about £2k BUT only if the OR believes you need the car for work. If it is just a case of having a car to go to the shops, etc. then the OR will not allow you to have a car. One thing about being BR is that the OR has complete control over your finances during your 12 months of BR.
If you did need a car for work then the OR would take your car, sell it and provide you with £2k to buy another car. You could also do this yourself and sell the car prior to BR, buy one for £2k and then provide the rest of the money to the OR. If you do this yourself then make sure you keep all of the receipts in case the OR wants to see them.
You don't mention how long you have been in the IVA and if you are a fair way through it, it would be a shame to let it fail.
I can understand you saying that you may have been hasty with the IVA and not advised of all of the facts. I had debts of £55k and would have been paying a similar monthly amount in an IVA. I saw an IVA as a lifeline and never even considered BR as I thought it was this terrible thing that should be feared and that you are somehow branded as a failure for the rest of your life. Luckily for me I spoke to Tina and Melanie from Melanie Giles and they advised me of the in's and out's of a DMP, IVA and BR. After having a think about my options and doing a lot of research I decided that BR was my best option. My only asset was a £1k car and I was in rented accommodation.
I spoke to Tina and Melanie last March, declared BR in May and was discharged in Nov. I pay an IPA, and will continue to do so until July 2012, but I have no doubt that BR was the right option for me.
I would say that you should think about your current situation and not rush into anything. If you do declare BR then it is not something that you can back out off so you are not able to change your mind.
Some things to think about if you do declare BR:
- You would lose your current car and only be allowed one up to a value of £2k IF the OR deemed you needed a car for work.
- You don't mention your property. If you own your property and it has equity then the OR will want to release this. A friend/relative can buy the equity otherwise the OR will sell the property. If you rent then the OR will more than likely contact your landlord to ensure that you are up to date with the rental payments. Some rental agreements have a BR clause in them so it is worth checking this.
- If you declared BR after April 5th (new tax year) your tax code would change to a NT (Nil Tax) code. HMRC would contact your employer's HR Dept to advise of this. This may mean that your HR Dept will know that something is up with your finances.
- Some jobs, especially those in Finance, can be affected when you are BR and employers unwilling to employ people who are BR so it is worth checking your contract.
You shouldn't let these points put you off declaring BR but they are something to be aware of and consider when deciding whether BR is the right option for you. |
| Reviva UK |
Posted - 17 January 2010 : 08:42:04
you need to get the absolute facts not fluffy answers so need to speak to the IP or carefully read the IVA proposal.
I suspect that when your pension arrives in May your payments will increase. I also suspect that the income in Jan may be viewed as a lump sum so thay may want the majority of that.
Do you have a dog? if not it is a legal document and would not recommend that route.
perhaps your payplan contact was not the best for full info
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
Real People ..... Real Debt Solutions |
| Hugo |
Posted - 17 January 2010 : 08:22:31
Hello All
PayPlans staff are every polite, helpful and sympathetic and constructed my proposal speedily. Lots of tea and biscuits!
I have however been enlightened through this and other forums and feel I was too hasty in relying on their information.
They didn't really give advice, rather pushed information impling BR was terrible, DMP just poor but IVA the answer to your dreams!
I spoke with my 'case officer' last Friday asking 3 pertinent questions expecting informed replies. Concerning
1. Were allowances available to support daughter at Uni
2. How income accrued before IVA started would be treated when recieved in Jan.
3. How my pension contributions would be treated - restarting in May.
I couldn't get a straight answer on any, just a 'we'll cross that bridge when we reach it' or we could say you have a dog to claim £25???
I couldn't put up with this for 5 years!
Regards
|
| Niobe |
Posted - 16 January 2010 : 23:34:05
I do have to say that I am with Payplan and never felt forced into anything. Everything was explained to me from day one, and I always wanted to pay back as much as I was able.
My daughter has been at Uni, and she has had student loans. We have helped where we can, but I'm afraid we can't help any further.
I do have to say as well that we have found our case officer to have been more than helpful.
Buckle your seat belt Dorothy, 'cos Kansas is going bye bye.
Jan
xx |
