| Author |
 Topic  |
|
|
Anxious2011
Starting Member
6 Posts |
 Posted - 12 June 2011 : 20:56:58
|
Hello everyone - new here today but have been reading loads of threads and there appears to be lots of friendly and helpful advise so I am really hoping someone can help me with some answers if possible (have quite a few!)
My hubby has 30k of unsecured debt - we have spoken with the CCCS and they have put us onto an IVA company who have so far been lovely.
I am quite concerned though that an IVA is not actually going to solve the debt problem and we are just delaying what I feel will be inevitable BR.
We have no property (we private rent) and no assets whatsoever (no money/savings etc). - this is why I am thinking BR rather than an IVA perhaps?
Firstly, is it mandatory our landlord is told if we DO decide on the BR route? We have a good relationship with him and do not want him to feel "nervous" if we forewarn him we might be going BR. We have never defaulted on any payments.
The creditors are 2 credit card companies and 2 loans - should we carry on paying the minimum repayments until we are totally sure which route to take or write to them now telling them we are in difficulty?
Hubb works fulltime self employed but we are still struggling (we would be better off if he took a job) but am worried he may be frowned on if he applies for positions if he is made BR - would that be so - he is not in the financial sector.
The IVA people want us to send them copies of all our documents etc this week but I am scared they may pressure us into an IVA even though I think BR will probably happen anyway.
If the IVA fails due to us struggling with the repayments and we go BR anyway, isn't that more stressful?!
Oh dear - sorry to waffle on but feel a bit pressured cos of the time constraints with IVA wanting docs this week and the next installments due with the creditors!
Help or advise as soon as anyone? thank you!  |
|
|
debtinfo
forum expert
2826 Posts |
Posted - 12 June 2011 : 21:49:48
|
Hi Anxious,
The first thing to say is that you should not do anything until you are completely happy and have had time to digest the ins and outs of all your options. If you need more time tell the IVA company so, a good IVA company wont pressure you into anything.
IVA or Bankruptcy, the final decision has to be your own.
Each has its advantages and disadvantages, you are right that most people do an IVA to protect their assets, other reasons might be that they have a job that is sensitive to bankruptcy or sometimes people just feel that it is the right thing to do.
One advantage of bankruptcy is that it is final and absolute whereas in an IVA you can be wondering for the whole 5-6 years of it is going to fail, on the otherhand one of the disadvatages of bankruptcy is that there is an investigation into your affairs and probably an interview which can be for some people a little more stressfull.
To answer your specific questions
Landlord - many OR's will contact the Landlord, all they are looking for is a copy of the tenancy agreement and confirmation that you have no arrears. Some OR's wont if you ask them but there is no guarantee.
If you have got to the point where you know you will be doing an IVA or bankruptcy then there is no point keeping up payments
There are some jobs that wont accept bankruptcies, it is on an individual basis and he just needs to check the contracts etc
Hope that helps |
 |
|
|
Anxious2011
Starting Member
6 Posts |
Posted - 12 June 2011 : 22:41:15
|
Thank you.
Will speak with the IVA company as I am not totally sold that this is the right option for my hubby.
As you say it will take another 5-6 years to complete, it took that long for the debt to accumulate! Just making wrong decisions and robbing peter to pay paul... ususal stuff!
Very anxious about the future and don't know best way to keep the wolves from the door really....
|
|
|
|
Anxious2011
Starting Member
6 Posts |
Posted - 13 June 2011 : 07:44:22
|
Another quick question -
If i take on a part time job during the time of hub BR then does that count as extra icome that has to be declared to the OR?
Also - as hub is self-employed shoud we shut that business down first (it is insolvent!) then file for BR or should we do it all in one go?
Questions have been popping up in my head over night!
|
|
|
|
debtinfo
forum expert
2826 Posts |
Posted - 13 June 2011 : 18:59:24
|
Your husband needs to tell the OR if there is more money coming into the house yes.
Well you should not be trading if insolvent, so i would say an orderly shut down as soon as possible |
|
|
|
xmas baby
Average Member
537 Posts |
Posted - 16 June 2011 : 13:50:05
|
Hi anxious,
I fully understand what you mean about being cautious with an IVA. Before I petitioned for bankruptcy I went down the road of a possible IVA, but after much deliberation I decided bankruptcy, although not an easy option, was the best option for me. One of my major concerns with an IVA was that fact that it was for 6 years and what if I couldn't continue with the payments after 5 years. I would be in the same position as before and have to go down the bankruptcy route anyway, together with wasting 5 years not to mention the money already paid into the IVA. Your credit is rubbished whether you take on an IVA or bankruptcy so there is no difference there. The only difference between an IVA and BK is they delve into your assets and affairs much deeper in bankruptcy and if you have any worthy assets, these would be seized by the OR. Otherwise, if you are in negative equity and have no valuable assets, then I think bankruptcy is the better option for many people. Obviously it is different for everyone, but I delayed the inevitable for nearly a year ditthering between doing an IVA or bankrupcty and I am glad I chose BK in the end. It hasn't been easy and still isn't, but it is a hell of a lot easier financially than it was 2 years ago.
Good luck whatever you decide to do.
xmas baby |
|
|
|
Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 16 June 2011 : 16:43:52
|
Have to say xmas baby that if you were to get a 6 year IVA (not the norm if you rent) and were stuck after five years there is a good chance that the creditors would accept what you had paid in as a full and final.
You may well end up paying as much in an IPA as you would into an IVA and yes, it is for longer but your credit record is rubbish for the same length of time.
An IVA isn't for everyone but all options should be looked at in depth before a decision is reached.
Don't forget that whilst it probably won't be in your local paper anymore, BR is in the London Gazette forever and if any companies wanted to check in the future then they could do.
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 |
|
|
|
moodybluetwo
Junior Member
156 Posts |
Posted - 17 June 2011 : 10:35:10
|
| Another problem with an IVA is that any creditors that have not been included in the first instance can be added at any time in the future. This happened to me…increasing the 5 year IVA up to 6 years. So any creditors from your past you may have forgotten about can come back at any time and cause you problems…..whereas in bankruptcy I believe all previous debts (that are allowable under bankruptcy) are written off. |
|
|
|
Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 17 June 2011 : 16:53:18
|
Not always moodybluetwo - depends upon the amount of debt and whether or not the other creditors agree. It can sometimes cause the IVA to fail.
All unsecured creditors should be included and 99.9% of the time it is the fault of the debtor that these were not included.
I am not saying this was the case with you.
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 |
|
|
|
moodybluetwo
Junior Member
156 Posts |
Posted - 18 June 2011 : 11:01:44
|
| I my case it was a debt going back over 6 years….and even the 6 year limitation rule did not help. My IVA Company told me by letter that this was going to go to a creditor meeting and I had no control over this. The overall debt was extended to 6 years with a slight increase in payments. I had forgotten about this debt and was worried there could be more so after taking lots of advice I decided to go BR. This could not have happened to me if I had gone BR in the first instance and in my situation BR would have been a better first choice. |
|
|
|
Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 18 June 2011 : 12:18:54
|
In your case then it obviously was, but it's not for everyone.
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
forum expert
2826 Posts |
Posted - 18 June 2011 : 13:28:25
|
| yep as Kallis says sometimes an undeclared debt can cause the IVA to fail as it has to be accepted into the agreement which the other creditors may not allow |
|
|
| |
Topic |
|
Crisis point - I think?!
