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| T O P I C R E V I E W |
| wannapaywhatIowe |
Posted - 04 September 2008 : 17:06:27
Hello all...
This is my first post although I have taken much good advice and comfort from many people on here so thank you for that.
I'll take some time to breakdown my situation as I hoep this will help. Please bear with me.
I am 19 months into an IVA for debts of £31K. I pay £620 pcm into the IVA (slightly higher than the £590 agreed at the start) this is due to a salary increase and I missed a payment one month (agreed by IP) due to a house move.
I live with my 2 x children. 1 x 5 and 1 x 19 months old (the older boy is not mine) and my partner who is a stay at home mum and is not involved in any way in the IVA.
I earn £44k per annum and have to use this to support all of the family I am up to date with all payments and whilst it has been hard and even more so with the current rising costs I am up to date and determined that I want to clear my debts.
I have no assets save a car worth around 3k at a push and houshold items such as clothes, laptop and a bike and we rent. I do not own my own house and do not work in any profession where I would be affected by a Bankruptcy.
The problem is the breakdown of my relationship. After the birth of my daughter my partner suffered from huge post natal depression so much so that we became homeless from the social housing property that my partner had the tenancy for and we oppupied as a family.
The loss of the house was not down to any financial issues but solely her mental state of health. She was suicidal and in a very dark place at the same time that we were in temporary accomadation for the first 9 months of my baby girls life. This only really served to make her worse.
To cut a long story short we eventually moved in December of last year into a council property and had home again. The problem is though that our relationship has suffered irrepairably and we have been fighting to stay together for the last 8 months but things have got to breaking point where the children are beginning to suffer emotionally due to the quite obvious lack of love between us both.
The issues with the IVA though is this. My current repayment schedule only accounts for £400 rent per month which is based on the social housing that we were in when I took out the IVA 18 months ago.
If I leave I will not be able to rent a property on the private market for £400 that will allow me the access and space to see my children which will devestate me. I looked at moving out to rent a room in a house but I would have been unable to provide any sort of place ot see my kids which above anything else is vital to me. A 2 bedroom property in the area I live and work is £750 minimum per month.
The other issue is the Child Maintenance that i will obviously have to pay and that has not been factored into my budget on my current salary it would amount to around £400 pcm based on current 15% take home salary.
Overall my outgoings with CSA and Rent payment increase would be +£700pcm.
I feel there will be savings to be made on things like shopping bills as it would be me for most of the week and not 4 people in the family etc so I can make some savings. I do feel though that unfortunately being a weekend dad as such expenses will still be incurred and it is inevitable that for new clothes, days out, additional fuel and travel expenses to see them etc etc I will be called upon to contribute.
I guess my question then is that is there any negotiation to be had regarding my payments being lowered on my IVA to accounte for this. I would think that my payment would be close to £300 psm from the £620 it is now?
My worry is that our split will lead to Bankruptcy and with this come a situation where I will not have enough money to be able to see my family and see my friends and begin to build relationships with some spare money to go out etc.
I also have nothing to my name. No Bed, No bed for the kids to stay in, No TV, Sofa, Fridge, Freezer, Pots amd Pans, Knives and forks etc etc etc. All of my wordly good will have to stay in our house for kids and my family.
How will this work under bankruptcy? Will I be able to have money to buy myself these essentials? Not anything flash just things but things that I and my kids need.
Also how do I raise money for a deposit on private rental?
Will I be able to rent under private rental when bankrupt........... Should I rent prior to this happening and hope for the best?
Having written all of this down it is now all coming out.
At the heart of it all is I am so scared that on top of losing my beautiful baby girl I will be unable to offer her what she needs which is a happy dad who has enough funds to at least rebuild his life and see friends and a clean safe house and place for her to call a home with her dad. Is it too much to ask. I work hard and earn good money and all I want to do is to pay back what I owe even if that takes me 15 years at £150 a month.
Sorry for the rant. I hope there maybe someone who has gone throuh similar and lived to tell the tale.
Yours
N |
| 7 L A T E S T R E P L I E S (Newest First) |
| m and v |
Posted - 05 September 2008 : 08:44:07
Hi N
I have not heard of employers being told directly however when BR your tax code is set to Nil and the OR recovers that unpaid tax from you each month. Your employer therefore is notified of a nil tax code (I assume by inland revenue not the OR - experts please advise if this is wrong!)
There are other reasons other than BR for having a nil tax code though so it is up to you whether or not you tell them. If you work for a large company the chances are the wages/personnel dept is removed from the place you work so you don't have to deal with anyone who might know. Hope that makes sense!
Vicki x |
| Needafriend |
Posted - 05 September 2008 : 08:40:57
Hi N
We told OH employer, did not have too, but some jobs you may have too.
Many places are quite happy, obviously some jobs u are restricted once BR but i always say honesty is the best policy.
Its up to you really, if you have a good working relationship and feel that what you tell them wont get passed around then go for it.
Take care,good luck and ......
Keep Smiling
Jo :)
"There is light at the end of the tunnel, if you cant find it get a brighter torch"
You can read my updated blog here:
http://debtfreejo.blogs.bankruptcyhelp.org.uk/ |
| wannapaywhatIowe |
Posted - 05 September 2008 : 08:27:52
Hi All...
Thankyou all very much for your advice. It is much appreciated.
In terms of my payments of 620 pcm they are revised up after having made initial payments of 590 agreed on the IVA of just over 30K. Missed 1 payment though and so therefore making up the difference through increased payments.
You're right though it is a high payback of pence in the pound with 81 of 100 and the rest on IP fees.
To be honest I kind of feel that I should have been more directed own the bankruptcy route to begin with. I had actually never missed a payment on my debts and was trying to act prior to getting myself into problems with my new daughter and my partners health.
It is interesting that you all mention that the payments are more flexible under bankruptcy and more considered that is reasonable.
Also thankyou for the advice in terms of the renting prior to going Bankrupt. I assume then less likely to be a problem once you're in there.
In terms of employment can I ask if anyone knows wether of not my employer will have to be told about my bankruptcy? I am in the process of awaiting a decision on new employment and would rather not have to start a job in that position?
Kind Regards
N |
| John |
Posted - 04 September 2008 : 19:49:12
Hi Zoe
the other £6K or £7K will be the IP's fees I guess, so it looks like an IVA at 100p in the £.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
| JulianDonnelly |
Posted - 04 September 2008 : 17:41:27
Hi N and welcome to the forum.
I would suggest your first port of call is to discuss your situation with your IP with a view to amending your IVA payments.
From what you've said, it would certainly appear that you'd be far better off in BR. The allowances for expenditure are far more reasonable and realistic than in an IVA. In addition, if you have a suprplus income of £100+ per month, you will be asked to make contributions under an Income Payment Agreement/Order every month for 3 years, so you will be paying back a portion of your debt.
I appreciate you took the debt out in good faith and want to make every effort to pay as much back as you can. A very commendable attitude, but don't let it cost you your family.
I wish you the best of luck. If you have any more questions, feel free to continue posting!
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
| zoe |
Posted - 04 September 2008 : 17:33:15
Hi there and welcome!!!
Forgive me if i am wrong but £620 per month for 60 months is more than your orignal debt???
I would recommend that you talk to your IP and see whether there is any chance of a variation proposal you obviously cannot service the IVA at the levels that you are paying.
BR is an option for you if you have no assets but obviously that is down to your own feelings
Hope this helps |
| m and v |
Posted - 04 September 2008 : 17:33:10
Hi N - welcome to the forum!
I am so sorry you are having such a tough time, you have however come to the right place for advice and support and hopefully this will ease the pressure a little.
A BR assist expert will be along shortly but in the meantime as an "IVA failure" I can try to give you some advice.
IVAs are really rigid when it comes to assessing how much surplus income you have - I found in the two years of my IVA that they just would not consider all my outgoings or changes in my income.
I decided to go down the BR route and it has been such a huge relief. Its not the answer for everyone and the experts may have other suggestions for you.
BR allows you to list all your outgoings and the OR will consider everything that is realistic.
I went from paying (or trying to pay!) over £500 per month to paying nothing as I have such low surplus income.
I stopped paying my IVA payments in order to save the court costs to go BR - this may be something you will be advised to do by an expert to get together rental deposit, money for household items, court costs etc. They will be able to tell you how to do it and it seems the best time to rent is before going BR.
I know things seem daunting at the minute but once you have control of the financial side of things you will be able to enjoy the time you spend with your daughter. It will come right.
Hang on there for a BR assist expert to fill in the gaps.
Hope this helps a little in the meantime
Take care
Vicki x |
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