| T O P I C R E V I E W |
| charlie44 |
Posted - 07 September 2009 : 15:17:43
I am a little confused and worried to say the least and was wondering whether anyone can please help me? My wife and I have applied for an IVA but we have been told it would be more suitable to opt for bankruptcy. As you can imagaine we are both terrified of what will happen if we go down this route. How much are you allowed to live on each week? At the moment there are 3 of us in our household including our 6 year old son. I am medically retired and am in receipt of my employee pension plus incapacity benefit due to why I had to retire early. My wife does not work but is in receipt of some benefits. Also how much does your car have to be worth to keep it and would me being register disabled have any bearing on us keeping it? Also if a family member could lend the amount over whatever the amount you are allowed would you then be able to pay that money and keep it. Sorry for all the questions and the way I have posted them, but my mind is in turmoil at the moment,
regards
John |
| 12 L A T E S T R E P L I E S (Newest First) |
| Housing |
Posted - 23 September 2009 : 19:52:29
hi Lyn5854.
I refer to your posting earlier in response to Charlie - I hope that you will have seen my reply.
If you have wording on your tenancy agreement that refers to Bankruptcy, post the precise wording and I will try to assist with some thoughts for you. (I got a bit confused I think - I addressed my comments to Charlie!!)
My comments should have been directed to your posting!! The Indian Summer is getting to me and I am easily confused!
Good luck and I hope that you have read my earlier comments, Richard
"There are no problems - only solutions..." |
| Housing |
Posted - 23 September 2009 : 19:36:10
Hi again,
Glad to be of some use - even if its just sharing ideas.
I agree, this is an excellent forum. I found it by accident!!
All of us who are BR have something to offer each other - experience from another profession or trade and that I have found to be worthwhile. I have found the experts (all of them)to be invaluable too.
Good luck again and thanks for your good wishes too, Richard
"There are no problems - only solutions..." |
| charlie44 |
Posted - 23 September 2009 : 19:31:03
Thanks a lot Richard, I have found this site invaluable. This site has been a godsend along with its sister site for IVA`s. If I had not found these sites I dread to think what may have happened. You are right about the rent being up to date, I always ensured that the priority bills were never late and are all up to date. All the debt I have accrued is on CC. Thanks for your good wishes and the same to you. |
| Housing |
Posted - 23 September 2009 : 19:22:26
Hi again,
That sounds good to me - no need to worry and if he/she says anything do not be concerned - post here if that happens and I will offer my views for you to think about.
In my view, you have nothing to worry about - I assume that the rent is up to date and that will remain the position - therefore really unless the OR makes contact - your landlord will probably never know you are BR.
Good luck with your journey over the coming weeks - post here as necessary - someone will have answers for you to consider - you are NOT alone, Richard
"There are no problems - only solutions..." |
| charlie44 |
Posted - 23 September 2009 : 17:24:09
Hi Richard it is an Assured Shorthold Tenancy, and I have been over it at least 3 times and there is no mention of BR at all. |
| Housing |
Posted - 23 September 2009 : 17:03:32
Hi Charlie,
Just picking up on your tenancy agreement and what appears to be a form of restrictive covenant. I would be interested if you could post the precise wording of any clause that appears in your tenancy agreement that refers to bankruptcy.
Some tenancies do mention BR - some are silent on the matter.
I am happy to look at the wording and see if the clause/covenant is a "fair" one.
Do you know what type of tenancy you have? You have said you have lived there for 16 years
I am happy to try to assist by "cyber advice" if you would like me to.
I wish you well, Richard
"There are no problems - only solutions..." |
| lynn5854 |
Posted - 23 September 2009 : 15:12:05
I had an IVA and couldnt keep up the payments and am now being made BR. I want to start trading again straight away..I will probably be able to keep my machines as they arent worth much and are essential, my van is worth about £500 but the mot is due. The only unknown quantity is my landlord, my lease says if I am involved in BR my lease is void. I dont owe the rent,and have been here for 16yrs.. I also live on the premises... what should I do?
l,elliott |
| gettingoutofdebt |
Posted - 07 September 2009 : 19:13:07
DI is the amount of money you have left over once you have paid for rent/mortgage, utility bills, food, clothes, telephone, travel to/from work, etc.
In an IVA this would be the amount that you would pay to the IP. In bankruptcy this is your DI and you would pay between 50% and 70% of this amount to the OR (Official Receiver) in an Income Payment Agreement (IPA).
If you have more than £100 DI then the IPA would last for 36 months but would go up and down depending upon your DI. So if your DI increased then so would your IPA and vice versa.
Don't worry about BR, I was originally looking at an IVA and spoke to Melanie as well but decided on BR and now realise that it was definitely the right decision for me. |
| charlie44 |
Posted - 07 September 2009 : 19:05:11
Once again thank you for the quick reply and yes you are right in your guessing. I am still worried about going BR, but after discussing it with my wife I think we will do whatever we are advised. Hopefully it will not be as bad as I imagine it to be!
I am sure I will be on here quite a lot asking a lot of questions, as I am a born worrier. Also what is actually classed as Disposable Income? |
| gettingoutofdebt |
Posted - 07 September 2009 : 16:38:09
No problems, I am guessing that you had a call with Melanie or one of her colleagues and they definitely know what they are talking about so BR looks like the best option. Feel free to post any questions you have as there are plenty of people here who will help you. |
| charlie44 |
Posted - 07 September 2009 : 16:09:05
Thanks for the quick reply. The reason they have suggeted BR is because my wife does not have enough debt on her own, whilst I do and she would not be eligible for an IVA but I would. This would mean her trying to get an agreement with her creditors while I go it alone with an IVA. I have been advised of all the choices open to me and am happy with the advice I have received. It is from one of the 2 companies you have posted. Once again thanks for the reply. |
| gettingoutofdebt |
Posted - 07 September 2009 : 15:43:17
Hi,
The following has some guidelines on the living expenses while BR - www.insolvency.gov.uk/DocumentLibrary/Policy/Excel/Household%20Expenditur.xls
When you are BR you can't specify expenses such as Xmas/Birthday presents, Emergency Fund, social/entertainment, etc as these will need to come out of any disposable income (DI). The good news is that if you have less than £100 DI then you can keep it all. Above that you have to pay between 50% and 70% depending upon how much DI you have so you may find you would have more money in your pocket in you declare BR. Have a look at Skippy's blog as she mentions that figures she was allowed by the OR -http://skippy13.blogs.bankruptcyhelp.org.uk
Normally a car would need to be less than £2k in value to be exempt but it could still be taken by the OR if they didn't think you needed it. You can make the OR an offer for the car if someone can lend you the money. If you are registered disabled then you may be able to keep the car if you need it for basic transport needs.
Can I ask who you were advised to declare BR by? I would recommend talking to a couple of companies before deciding to declare BR if your original choice was an IVA. The following companies post here and would be able to advise you on your best course of action:
Reviva UK: http://www.revivauk.com/
Jones Giles - http://www.jonesgiles.co.uk/ |
