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IVA2009Ggrrrr
Starting Member
4 Posts |
 Posted - 13 June 2011 : 21:12:51
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Hello!
In December 2009 me and my husband started an IVA. It was all going well but unfortunately we have come to realise that an IVA is really not the right option for us. This is for several reasons including the fact that the budget that we were put to live on was very tight. We thought it would work, but for the most part of the past 18 months or so we have constantly had to borrow money from family/friends which we have come to realise is the wrong thing to do. We have considered all our options and have decided that our best option is infact Bankruptcy. We have a daughter who is soon 3 and another on the way, with two kids in day care and additional costs it is just IMPOSSIBLE to continue with the IVA payments. I have done a new budget but there is absolutely nothing left to give at the end of the month. Our home is in negative equity and we have been told that it is probably of no interest to them anyway, but we are thinking of giving it back as we are not happy in this area and the location of the property is just wrong. Everything seemed to be going fine, but today we found out just how hard it will be to find rented accommodation once we are declared bankrupt and I really do not want to be left with no where to live especially since we have a toddler and another baby on the way.
Please could you advice me on what option we have when it comes to renting a property following bankruptcy?
Also, our only means of saving any money to go bankrupt and get out of our house is to miss a couple of mortgage payments.... Not more than three but I think three might be the amount we would need to miss. How would that be considered in the courts?
Grateful for any input.
VERY STRESSED! |
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Viki.W
forum expert
United Kingdom
2211 Posts |
Posted - 13 June 2011 : 23:13:27
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Hi and welcome to the forum.
I advise you secure your rented accomodation before you declare bankruptcy.
Have a chat with your IP regarding your IVA, if there is nothing that can be done to carry it on, then you will need to formally fail it.
Viki Warbrooke
Vincent Bond & Co
If you would like free advice on all options available and help with your bankruptcy petition please contact me at http://www.vincentbond.com/about_us_Viki_Warbrooke.asp
Please read my experience of debt via my blog at http://vikiw.blogs.iva.co.uk/ |
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moodybluetwo
Junior Member
156 Posts |
Posted - 14 June 2011 : 07:51:35
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| As Viki has stated its best to get your accommodation sorted before you go BR but make sure your new landlord is bankrupt friendly and there is no clause in your tenancy agreement that does not allow bankrupts to rent. In my case the OR`s office did inform my landlord of my bankruptcy but it did not affect my tenancy. |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 14 June 2011 : 18:36:51
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You do realise that you could be paying as much, if not more, than you pay into your IVA at present?
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 |
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debtinfo
forum expert
2826 Posts |
Posted - 14 June 2011 : 19:36:05
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| you would unlikely be paying more, that almost never happens, but with the recent changes it is quite likely that you would be paying almost as much |
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IVA2009Ggrrrr
Starting Member
4 Posts |
Posted - 14 June 2011 : 22:54:00
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offcourse, I am aware that I might be paying as much into bankruptcy, but I have to ammend the budget because they are making us live on a very tight budget .. an unrealistic one. For that reason I am having to always borrow money. Also soon we will be a family of four and not just three and I think the IVA should reflect this. Anyhow, still thinking of my options but thank you for your replies.
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Daniel Griffiths
Junior Member
United Kingdom
268 Posts |
Posted - 18 June 2011 : 10:08:31
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Hi
I would seriously consider not giving up your home, you have managed the IVA and mortgage payments over the last 18 months, via borrowing from friends and family, can you manage the mortgage without the IVA because you will only get an Income Payments Order if you can afford one and its very different to the IVA. In an IVA if you cant afford to pay it fails, you pay an IVA because you have to, you pay an IPO only if you can afford to and if your circumstances change and income drops the IPO drops also your bankruptcy does not fail you have comfort of conclusion. If you allow the property to be repossessed you may never again be able to buy, and remember since 1949 property has doubled every ten years, keep it and one day it will be assett,if you give it up and rent how do you know you will not end up in a worse area that now. |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 18 June 2011 : 12:17:42
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If you can afford payments into an IVA then you will get an IPA and it is very likely to be as much as you are paying now.
If your income drops then it does not necessarily mean that your IPA will drop by the same amount. Traceyjr had a pay cut whilst doing her IPA but it was not reduced by the same amount and I know she struggled.
There is also every chance that at some point you will be able to buy again. If you are not happy where you are living then perhaps now is the time to look at moving to a better area before you declare bankruptcy.
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 |
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debtinfo
forum expert
2826 Posts |
Posted - 18 June 2011 : 13:26:33
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| although you have to remember that in traceyjr's case the IPA was only a proportion of surplus and so a fall in income (and surplus) would of course mean that the IPA reduced by a smaller amount because not all of that surplus was being taken |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 18 June 2011 : 13:54:18
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Jan is right, I did struggle - my pay was reduced by nearly £100 and my IPA was reduced by £25 so I think in my case the RTLU may have disallowed some things that the OR had allowed.
View my blog at http://skippy13.blogs.iva.co.uk/
Only when the last tree has died, the last river has been poisoned and the last fish has been caught will we realise that we cannot eat money.
Last IPA payment made on 28th June 2010 - it's over at last! |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 18 June 2011 : 14:05:57
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I should also have added that Debtinfo is correct, my IPA was set on the old rules and therefore worked out on a sliding scale. I still feel I was hard done by though!
View my blog at http://skippy13.blogs.iva.co.uk/
Only when the last tree has died, the last river has been poisoned and the last fish has been caught will we realise that we cannot eat money.
Last IPA payment made on 28th June 2010 - it's over at last! |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 18 June 2011 : 14:17:33
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I wonder how the rules work now though? I know things have changed but it would be interesting to see how much an IPA goes down by if circumstances change.
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 |
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debtinfo
forum expert
2826 Posts |
Posted - 18 June 2011 : 15:48:54
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since they are taking all surplus then providing that all other things are equal (ie no changes in expenditure) then the drop in income should be equal do the drop in IPA.
BUT
of course things are rarely that simple, for an example say you stopped working overtime at weekends, your income goes down but your fuel might go down as well as you are traveling less often, a simple example (usually things are more complicated) but you can see how it may not be a simple as less income less IPA |
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Daniel Griffiths
Junior Member
United Kingdom
268 Posts |
Posted - 18 June 2011 : 16:13:48
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| However unless it was compulsary, would anyone work overtime at weekends just to have it all paid across in an IPO, the new rule gives no incentive to increase earnings. |
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debtinfo
forum expert
2826 Posts |
Posted - 18 June 2011 : 16:51:03
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| sometimes it is not optional |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 18 June 2011 : 16:54:34
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Who knows what is going on now? Public Sector haven't got a clue.
If your terms of employment state that you have to work overtime at weekends then you will have to declare this.
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 |
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Topic |
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IVA to Bankruptcy : WHAT shall we do?
