| T O P I C R E V I E W |
| IVA2009Ggrrrr |
Posted - 13 June 2011 : 21:12:51
Hello!
In December 2009 me and my husband started an IVA. It was all going well but unfortunately we have come to realise that an IVA is really not the right option for us. This is for several reasons including the fact that the budget that we were put to live on was very tight. We thought it would work, but for the most part of the past 18 months or so we have constantly had to borrow money from family/friends which we have come to realise is the wrong thing to do. We have considered all our options and have decided that our best option is infact Bankruptcy. We have a daughter who is soon 3 and another on the way, with two kids in day care and additional costs it is just IMPOSSIBLE to continue with the IVA payments. I have done a new budget but there is absolutely nothing left to give at the end of the month. Our home is in negative equity and we have been told that it is probably of no interest to them anyway, but we are thinking of giving it back as we are not happy in this area and the location of the property is just wrong. Everything seemed to be going fine, but today we found out just how hard it will be to find rented accommodation once we are declared bankrupt and I really do not want to be left with no where to live especially since we have a toddler and another baby on the way.
Please could you advice me on what option we have when it comes to renting a property following bankruptcy?
Also, our only means of saving any money to go bankrupt and get out of our house is to miss a couple of mortgage payments.... Not more than three but I think three might be the amount we would need to miss. How would that be considered in the courts?
Grateful for any input.
VERY STRESSED! |
| 15 L A T E S T R E P L I E S (Newest First) |
| Skippy |
Posted - 18 June 2011 : 17:30:55
I work in the private sector and my contract states that I have to do any extra hours necessary. While it's never been an issue, I wouldn't have been able to not do overtime just to avoid paying it into my IPA.
View my blog at http://skippy13.blogs.iva.co.uk/
Only when the last tree has died, the last river has been poisoned and the last fish has been caught will we realise that we cannot eat money.
Last IPA payment made on 28th June 2010 - it's over at last! |
| Niobe |
Posted - 18 June 2011 : 17:07:43
I agree that it is individual. Who knows what is going on at the moment.
The world is broken, halos fail to glisten
We try to make a difference but no one wants to listen
Hail the preachers, fake and proud
Their doctrines will be cloud
Then they'll dissipate like snowflakes in an ocean
Jan
xxx |
| debtinfo |
Posted - 18 June 2011 : 17:01:06
also some people MAY do it because although they wont see the immediate financial benefit it may be in their long term promotion prospects. individual decision for the person concerned though |
| Niobe |
Posted - 18 June 2011 : 16:54:34
Who knows what is going on now? Public Sector haven't got a clue.
If your terms of employment state that you have to work overtime at weekends then you will have to declare this.
The world is broken, halos fail to glisten
We try to make a difference but no one wants to listen
Hail the preachers, fake and proud
Their doctrines will be cloud
Then they'll dissipate like snowflakes in an ocean
Jan
xxx |
| debtinfo |
Posted - 18 June 2011 : 16:51:03
sometimes it is not optional |
| Daniel Griffiths |
Posted - 18 June 2011 : 16:13:48
However unless it was compulsary, would anyone work overtime at weekends just to have it all paid across in an IPO, the new rule gives no incentive to increase earnings. |
| debtinfo |
Posted - 18 June 2011 : 15:48:54
since they are taking all surplus then providing that all other things are equal (ie no changes in expenditure) then the drop in income should be equal do the drop in IPA.
BUT
of course things are rarely that simple, for an example say you stopped working overtime at weekends, your income goes down but your fuel might go down as well as you are traveling less often, a simple example (usually things are more complicated) but you can see how it may not be a simple as less income less IPA |
| Niobe |
Posted - 18 June 2011 : 14:17:33
I wonder how the rules work now though? I know things have changed but it would be interesting to see how much an IPA goes down by if circumstances change.
The world is broken, halos fail to glisten
We try to make a difference but no one wants to listen
Hail the preachers, fake and proud
Their doctrines will be cloud
Then they'll dissipate like snowflakes in an ocean
Jan
xxx |
| Skippy |
Posted - 18 June 2011 : 14:05:57
I should also have added that Debtinfo is correct, my IPA was set on the old rules and therefore worked out on a sliding scale. I still feel I was hard done by though!
View my blog at http://skippy13.blogs.iva.co.uk/
Only when the last tree has died, the last river has been poisoned and the last fish has been caught will we realise that we cannot eat money.
Last IPA payment made on 28th June 2010 - it's over at last! |
| Skippy |
Posted - 18 June 2011 : 13:54:18
Jan is right, I did struggle - my pay was reduced by nearly £100 and my IPA was reduced by £25 so I think in my case the RTLU may have disallowed some things that the OR had allowed.
View my blog at http://skippy13.blogs.iva.co.uk/
Only when the last tree has died, the last river has been poisoned and the last fish has been caught will we realise that we cannot eat money.
Last IPA payment made on 28th June 2010 - it's over at last! |
| debtinfo |
Posted - 18 June 2011 : 13:26:33
although you have to remember that in traceyjr's case the IPA was only a proportion of surplus and so a fall in income (and surplus) would of course mean that the IPA reduced by a smaller amount because not all of that surplus was being taken |
| Niobe |
Posted - 18 June 2011 : 12:17:42
If you can afford payments into an IVA then you will get an IPA and it is very likely to be as much as you are paying now.
If your income drops then it does not necessarily mean that your IPA will drop by the same amount. Traceyjr had a pay cut whilst doing her IPA but it was not reduced by the same amount and I know she struggled.
There is also every chance that at some point you will be able to buy again. If you are not happy where you are living then perhaps now is the time to look at moving to a better area before you declare bankruptcy.
The world is broken, halos fail to glisten
We try to make a difference but no one wants to listen
Hail the preachers, fake and proud
Their doctrines will be cloud
Then they'll dissipate like snowflakes in an ocean
Jan
xxx |
| Daniel Griffiths |
Posted - 18 June 2011 : 10:08:31
Hi
I would seriously consider not giving up your home, you have managed the IVA and mortgage payments over the last 18 months, via borrowing from friends and family, can you manage the mortgage without the IVA because you will only get an Income Payments Order if you can afford one and its very different to the IVA. In an IVA if you cant afford to pay it fails, you pay an IVA because you have to, you pay an IPO only if you can afford to and if your circumstances change and income drops the IPO drops also your bankruptcy does not fail you have comfort of conclusion. If you allow the property to be repossessed you may never again be able to buy, and remember since 1949 property has doubled every ten years, keep it and one day it will be assett,if you give it up and rent how do you know you will not end up in a worse area that now. |
| IVA2009Ggrrrr |
Posted - 14 June 2011 : 22:54:00
offcourse, I am aware that I might be paying as much into bankruptcy, but I have to ammend the budget because they are making us live on a very tight budget .. an unrealistic one. For that reason I am having to always borrow money. Also soon we will be a family of four and not just three and I think the IVA should reflect this. Anyhow, still thinking of my options but thank you for your replies.
|
| debtinfo |
Posted - 14 June 2011 : 19:36:05
you would unlikely be paying more, that almost never happens, but with the recent changes it is quite likely that you would be paying almost as much |
