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oranges
Starting Member
United Kingdom
5 Posts |
 Posted - 27 February 2010 : 20:40:34
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I’m currently 18 months into an IVA, and it is not working. I’m now in the situation that I believe BR is the only option, and with my house being in negative equity, have no idea why I didn’t consider this at the start.
Here is a truthful I&E I would propose for BR:
Mortgage £ 640
Food/House Keeping £ 240
Electric/Wood Fuel/Boiler Service £ 170
Private fuel (Have Company Car) £ 60
Council Tax £ 75
Broadband £ 30
LandLine Phone £ 20
Hosue Insurance £ 46
Water Rates £ 38
DayTime Meals (work away) £ 30
Clothing/Dry Cleaning £ 40
House/Incidents £ 50
Life Insurance (No Surrender) £ 15
Optical £ 17
TV Licence £ 12
Sundries £ 20
Perscriptions (PPC) £ 10
News/Sibscriptions £ 5
Hair £ 10
£ 0
Pet Food £ 20
Birthdays £ 15
Domestic Break £ 25
Mobile £ 35
Dentist £ 10
TOTAL EXPENDITURE £ 1633
My questions are:
Do I have to be in breach of my IVA to go BR?
How long, if I missed a further IVA payment, will it take for my IVA to lapse?
Do I have to wait for some release certificate from IVA before going BR?
I propose to move my Mortgage back to repayment before going BR, as it was moved to interest only when entering the IVA – How will this be seen by the OR?
The I&E above leaves me with less than £99 a month, so will I escape IPO? (or IPA?)
Does the I&E look realistic? I work from home when not away on business, and I need a fast internet connection and land line for this. Also, I go for budget suits where I can.
I work away most weeks, and I have my best mate look after my house and pet – They use the address as main residence (although only here when I am away) and I don’t charge them rent as they are on a low income – Do I declare this, and if I do, how will the OR see it?
Would it be advantageous to go BR before 6th April 2010? (I have read the price goes up, but I am interested in nil TAX, as if at the end of the financial year, will this remove any interested in IPO/IPA)?
There are loads more, but this is a started for ten.
Thanks in advance.
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debtinfo
forum expert
2826 Posts |
Posted - 27 February 2010 : 21:06:32
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quote:
Originally posted by oranges
I’m currently 18 months into an IVA, and it is not working. I’m now in the situation that I believe BR is the only option, and with my house being in negative equity, have no idea why I didn’t consider this at the start.
Here is a truthful I&E I would propose for BR:
Mortgage £ 640
Food/House Keeping £ 240
Electric/Wood Fuel/Boiler Service £ 170
Private fuel (Have Company Car) £ 60
Council Tax £ 75
Broadband £ 30
LandLine Phone £ 20
Hosue Insurance £ 46
Water Rates £ 38
DayTime Meals (work away) £ 30
Clothing/Dry Cleaning £ 40
House/Incidents £ 50
Life Insurance (No Surrender) £ 15
Optical £ 17
TV Licence £ 12
Sundries £ 20
Perscriptions (PPC) £ 10
News/Sibscriptions £ 5
Hair £ 10
£ 0
Pet Food £ 20
Birthdays £ 15
Domestic Break £ 25
Mobile £ 35
Dentist £ 10
TOTAL EXPENDITURE £ 1633
My questions are:
Do I have to be in breach of my IVA to go BR? - Yes
How long, if I missed a further IVA payment, will it take for my IVA to lapse? - Normaly 3 missed payments
Do I have to wait for some release certificate from IVA before going BR? - Most judges will want an IVA failure certificate before stamping a bankruptcy order
I propose to move my Mortgage back to repayment before going BR, as it was moved to interest only when entering the IVA – How will this be seen by the OR? - cant see a problem, lots of bankrupts have repayment mortgages
The I&E above leaves me with less than £99 a month, so will I escape IPO? (or IPA?) - If the surplus is below £99 then yes, no guarantee that the OR will agree to your expenses though
Does the I&E look realistic? I work from home when not away on business, and I need a fast internet connection and land line for this. Also, I go for budget suits where I can. - I&E is very personal, just put down what you spend and see if it accepted
I work away most weeks, and I have my best mate look after my house and pet – They use the address as main residence (although only here when I am away) and I don’t charge them rent as they are on a low income – Do I declare this, and if I do, how will the OR see it? - im not sure i understand this, do they live there or not, where do they live when you are not away.
Would it be advantageous to go BR before 6th April 2010? (I have read the price goes up, but I am interested in nil TAX, as if at the end of the financial year, will this remove any interested in IPO/IPA)? - The fees do go up in april and some courts have waiting lists. Not sure what you are saying about the Nil tax
There are loads more, but this is a started for ten.
Thanks in advance.
hope that helps |
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RHB
Senior Member
1159 Posts |
Posted - 28 February 2010 : 09:21:55
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| It could be that the OR disallows your switch to repayment if it is seen as a way of you avoiding an IPA, after all your creditors won't benefit from it and you will in terms of starting to accrue equity. You might have to fund any extra repayment from your disposable income after the IPA, it all depends. |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 28 February 2010 : 09:54:45
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Hi Oranges
your initial response should be to speak to your IVA provider to see if the amount that you pay can be reduced and to see if they can help
you have paid the IVA for 18 months, well done many fail before that point.
BR may be appropriate for you, you have already paid for the services of the IVA provider, they may be able to assist with preparing you and taking you to BR, if not speak to one of the experts to the left they will be able to help
good luck regards Richard |
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oranges
Starting Member
United Kingdom
5 Posts |
Posted - 28 February 2010 : 09:57:08
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quote:
Originally posted by debtinfo
quote:
Originally posted by oranges
I work away most weeks, and I have my best mate look after my house and pet – They use the address as main residence (although only here when I am away) and I don’t charge them rent as they are on a low income – Do I declare this, and if I do, how will the OR see it? - im not sure i understand this, do they live there or not, where do they live when you are not away.
Would it be advantageous to go BR before 6th April 2010? (I have read the price goes up, but I am interested in nil TAX, as if at the end of the financial year, will this remove any interested in IPO/IPA)? - The fees do go up in april and some courts have waiting lists. Not sure what you are saying about the Nil tax
Point 1 - They live between here and their mothers house, but in the last six months I have spent more time away than here, so they are registered here for voting and some of their bills come to this address.
Point 2 - I understand that for the current financial year your tax code changes, and you are paid gross. Although paid to you, you have to pay this back 100% to the OR via IPA/IPO. However, if you go BR just inside the tax year (by a few days), the financial year would end and there would not be much, if any, tax to pay back, so therefore no IPA/IPO.
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debtinfo
forum expert
2826 Posts |
Posted - 28 February 2010 : 10:06:10
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1) This is an unusual situation, do they pay any rent to you or money for gas/elec etc, if not the OR may not allow the whole amount for those bills.
2)All of that is true, you wont have an IPA for the tax, although you may still get an IPA for surplus income. It does not really matter when you go bankrupt for the tax as you should not gain or lose from the tax IPA. |
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oranges
Starting Member
United Kingdom
5 Posts |
Posted - 28 February 2010 : 10:14:02
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quote:
Originally posted by Richard P
Hi Oranges
your initial response should be to speak to your IVA provider to see if the amount that you pay can be reduced and to see if they can help
you have paid the IVA for 18 months, well done many fail before that point.
BR may be appropriate for you, you have already paid for the services of the IVA provider, they may be able to assist with preparing you and taking you to BR, if not speak to one of the experts to the left they will be able to help
good luck regards Richard
Thanks for your response. I'm a bit miffed by IVA provider - On my last review, I submitted my I&E, and despite cost increases, they agreed not to increase payments, but didnt want to reduce them either. This left me with an additional £150 to find each month. This, in addition to a lot that has gone wrong with the house in the last few months, is why my IVA is failing.
Additionally, I am concerned that if there is any equity in the house when I get to year 5, that I will be unable to get/fund a mortgage and may loose the house anyway. With BR, there is a realistic chance I will get to keep it as I can get someone to buy the beneficial interest if the OR agrees.
And finally, if I speak to my IVA provider, I will show my hand, and they could force me into BR - Something I would prefer to do myself.
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oranges
Starting Member
United Kingdom
5 Posts |
Posted - 28 February 2010 : 10:17:12
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quote:
Originally posted by debtinfo
1) This is an unusual situation, do they pay any rent to you or money for gas/elec etc, if not the OR may not allow the whole amount for those bills.
2)All of that is true, you wont have an IPA for the tax, although you may still get an IPA for surplus income. It does not really matter when you go bankrupt for the tax as you should not gain or lose from the tax IPA.
Hi Debtinfo, yes it is. I didnt want to get rid of my dog, as he is part of my family (!) so it suited us both that they look after the house when Im away. I dont charge them rent. They earn less than £400 a month, and have bills of £300, so do not have any rent to give.
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Daniel Griffiths
Junior Member
United Kingdom
268 Posts |
Posted - 28 February 2010 : 11:07:27
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Hello Oranges,
Many clients in an IVA are interest only mortgage payments in order to be able to free up income to pay into this the IVA, if you are going bankrupt capital repayment is acceptable to the OR. I have to disagree with the others in that you are free to petition for voluntary bankrupty while still in the IVA rule 6.42 (2A) allows this.
6.42.— Procedure for presentation and filing
(1) The petition and the statement of affairs shall be filed in court, together with three copies of
the petition, and one copy of the statement. No petition shall be filed unless there is produced with
it the receipt for the deposit payable on presentation.
(2) Subject to paragraph (2A), the court may hear the petition forthwith. If it does not do so, it
shall fix a venue for the hearing.
(2A) If the petition contains particulars of a voluntary arrangement under Part VIII of the Act in
force for the debtor, the court shall fix a venue for the hearing and give at least 14 days' notice of
it to the supervisor of the arrangement; the supervisor may appear and be heard on the petition.
However while in the IVA you have protection from creditors anyway, but it could be that you wish to get this done at your pace and not theirs some IVA providers can take a year to close down arrangements if you wish to do it now it means going to court twice over 21 days but the time spent their is almost the same as going once, however many courts will grant the order on the first visit.
Finally its a shame that 18 months into this its failing due to as others have said you have only paid the IP fees an organisation you had no prior debt with. From what you have said it will be very unlikley that the IVA provider will bankrupt you unless its financially beneficial but if they did take advantage of the £510 saving the outcome is the same as voluntary. |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 28 February 2010 : 13:38:25
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Hi Oranges
As you have highlighted a number of issues that need to be looked at prior to petitioning for BR I would suggest that you Give Paul and his team at Reviva a call
they will work through the whole process with you
as far as i see the house sitters are not paying a rent in fact they are saving you kennel fees
regards and good luck Richard |
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I’m currently 18 months into an IVA
