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| T O P I C R E V I E W |
| kathryn13 |
Posted - 29 October 2011 : 12:12:02
Hi
Myself and partner since august have been in the process of setting up an IVA. without going into detail, we have debts (seperate) of around £60,000.
The IVA payment we were initially quoted would be a joint payment of around £570, and now we're near the final proposal stage, its looking at around £740. This is more than expected, and worries me
My question is, generally how much would it be if you had to pay into a bankruptcy, with the rough figures I've quoted? Is there a general percentage etc?
my other fear is, my partners car- its probably worth about 2500. we rely on it to get to work, as we work in 2 seperate towns- is it possible to sell it and cash buy a smaller car before going ahead?
I thought we had a clear way forward, but I feel confused and stressed all over again |
| 10 L A T E S T R E P L I E S (Newest First) |
| kathryn13 |
Posted - 02 November 2011 : 11:06:22
thankyou for your replies.
I've arranged a call with my IP tomorrow, its just all confusing, with the creditors letters now becoming more threatening.
I've not researched enough into the implications of bankruptcy, and I'm reading up on it now
Do they freeze every single bank account? With 1 bank, myself and my partner have our own individual accounts which our wages are paid into, and with the same bank we have a joint account, which we then transfer our money to. We dont owe this bank anything, and started using it once the IVa process got started- do they let you keep an account open for living? if they froze it, how would we have access to our wages?
Secondly, how do you stand if your circumstances change with bankruptcy? e.g. from what i've learnt with an IVA your IP can potentially arrange to reduce/increase your payments, e.g. because of salary changes/life changes/potential children etc.
how is this with bankruptcy? |
| Niobe |
Posted - 01 November 2011 : 17:52:36
I am not anti BR in the right circumstances. For some people it is the best thing to do but for others there are different solutions which may be better.
BR was just not for me.
Richard - the credit file for both BR and IVA will be stuffed for six years from the date of agreement for both.
Follow through
Make your dreams come true
Don't give up the fight
You will be alright
'Cause there's no one like you in the universe
Jan
xxx |
| Richard P |
Posted - 31 October 2011 : 15:23:48
Hi Daniel / Kallis
yes an ongoing discussion point IVA v Bankruptcy V DMP every ones situation is different and all options should be considered before decision is made.
current market conditions I do prefer Bankruptcy route, I have made my decision, i help others based on their own circumstances.
The point that often gets missed is the repairing of the credit file. with Bankruptcy credit file date is the court date so a fresh line is drawn.
with IVA a line is not fully drawn until final IVA payment has been made as it can be failed at anytime.
that beer sounds good Daniel but it could be a lively debate !
Good Luck Richard,
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| debtinfo |
Posted - 30 October 2011 : 14:47:36
unfortunately whatever the IP (or usualy worse the introductry company)quotes you at the start is always ever going to be a guestimate and never guarenteed it is for the creditors to accept vary or decline the offer, you are always taking a risk that if you cant come to an agreement then you have missed payments and may have reached a point of no return.
I think the point Daniel is trying to make is that whilst it is possible to vary an IVA later it is again at the agreement of the creditors and so no certainty exists until at the end of the 5-6 years of worry that the debts will finaly be gone.
It used to be almost certain that bankruptcy payments PER MONTH would be less than an IVA, however with the change in guidelines it has become a more close run thing although it is still unusual that an IPA would be more than an IVA PER MONTH, (there are a small number of circumstances where the IPA may be more), the main thing i think daniel is saying is that an IPA can not fail as such the debts are gone regardless of how your circumstances change, Of course there are other downsides to bankruptcy |
| Daniel Griffiths |
Posted - 30 October 2011 : 14:41:05
Hi Kallis
I love bumping heads with you on here, you are pro IVA and I guess I am Pro Bankruptcy, and I do hope one day we will have that pint. |
| Niobe |
Posted - 30 October 2011 : 14:32:06
I was quoted a dividend but it isn't a minimum and I will be going for a variation shortly so it will be even less.
My point with the payments in BR is that they can be as much as, or in some cases, more than those expected in an IVA.
You're still stuffed credit wise for the same amount of time with both BR and IVA.
Follow through
Make your dreams come true
Don't give up the fight
You will be alright
'Cause there's no one like you in the universe
Jan
xxx |
| Daniel Griffiths |
Posted - 30 October 2011 : 14:24:51
I only wish I had one pound for every person who entered an IVA who said to me I was quoted this and at the last minute I had to pay more than originaly agreed more for it to go through I was so far down the line I agreed to it. You may not have to meet a blanket minimum dividend but you certainly will have to pay as much as you can possibly afford whether that 100p in the pound or 10p in the pound.As for paying as much into bankruptcy as an IVA six years versus three years that mathematicaly does not ad up |
| Niobe |
Posted - 30 October 2011 : 14:06:48
Sorry Daniel but I disagree - you do not have to always have to meet a minimum dividend in an IVA. Some people do actually pay less than they expected to in the first place.
Kathryn - you need to speak to the IP and see why the payments have gone up.
Chances are that you will pay as much into BR as you would under the IVA.
Follow through
Make your dreams come true
Don't give up the fight
You will be alright
'Cause there's no one like you in the universe
Jan
xxx |
| Daniel Griffiths |
Posted - 30 October 2011 : 14:00:57
Hi Kathryn
The main diference with the IVA against bankruptcy is that creditors will have to be convinced they get a greater return in an IVA than Bankruptcy thats why they approve it, which simply means it costs you more.
In an IVA you have to meet a minimum dividend to the creditors that they are prepared to accept and also cover payment fees to the company who will be supervising this for you,there fees will be outlined in the proposal I suggest you take a look at that if its in your possession, they quoted a joint payment of £570 now they want £740 this is very common however you will be paying as much as you can possibly afford over the term 5 or 6 years. In bankruptcy you do not have to meet any dividend you will only ever pay what you can reasonably afford and at any time you can request a reduction of payments should your circumstances change unlike an IVA your bankruptcy will not fail and also very important the trustee in bankruptcy only has a year of opportunity to ask for such an order. If your income coming in equals your reasonable expenses going out you will simply pay nothing,but from what I have learned from your figures you must have a healthy surplus, is this because you are both working to repay your creditors, whatever you pay will be reasonable and require your agreement. With regard to your car no problem in selling it for market value and buying another for about £1000 this is the new figure allowed as reasonable for a vehicle you have already given the reason for its requirement To request how much you would pay into a bankruptcy this should be already outlined in your proposal, flick through the pages and check the figures in the IVA V Bankruptcy comparison page, whatever you decide good luck and tread very carefuly. |
| Niobe |
Posted - 29 October 2011 : 13:30:31
Hi,
You may well end up paying as much into bankruptcy as you would in an IVA as the rules have tightened up recently and if you have DI over £20 a month then you have to pay the lot over.
You may be ok with the car but you won't be able to buy one anymore expensive as the OR will want it sold and you would have to get a cheaper one.
Has your IVA company told you why the payments have gone up so much?
Follow through
Make your dreams come true
Don't give up the fight
You will be alright
'Cause there's no one like you in the universe
Jan
xxx |
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