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jojopotato
Starting Member
13 Posts |
 Posted - 10 January 2009 : 21:13:11
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Hi, I have been in an iva for 2 1/2 years and my husband lost his job in November. We were given a payment break by our IP, but it looks like we will have to fail the iva and declare bankruptcy as hubby cannot find a job paying anywhere near what he was paying. The problem we will have is that we cannot afford the bankruptcy fees, so will we have to wait for a creditor to apply for our bankruptcy and if so will it be likely that most of them are going to start harrassing us and sending out debt collectors first before taking this route? We rent our home and have no assets apart from 2 very old cars maybe worth about 500/600 each. Any advice would be much appreciated. Thanks!
Jo |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 10 January 2009 : 21:53:23
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Hi Jo & Welcome
I am sorry to hear about your current dilema but you have come to the right place. :-)
Your IVA would have to have a cert of failure from your IVA co to proceed with a BR as the court would require this for it to go through.
The fee is £495 each but seeing as your on benefits or a low income you can apply for a reduction via the court bringing them down to £345 each.
Is there no way that you can ask a family member to help you with the fees.
I dont know what else to suggest really. Some people save the money from paying their creditors but as your on a payment break that wont be possible.
If you wait for a creditor to make you bankrupt you may have a long wait as they dont like to do it with no assets and it costs them, also they may start with going to court and then payment orders and things.
I do hope that you can find a way to get the fee if BR is an option for you.
How much is your debts as there is a new debt relief order coming in, in april for debts under £15k.
Jo
x
Needafriend says:
Just always remember one thing, Your not alone, your not the first and you wont be the last.
23 Weeks down
29 to go
For more info on how i have come through bankruptcy and for links to help with filling out the forms, I&E, Car Valuations, etc, etc, you can read my blog here called:~ Needafriend's Info on Bankruptcy :-)
http://debtfreejo.blogs.bankruptcyhelp.org.uk/
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 10 January 2009 : 22:23:25
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Hi
have a good conversation with your IP. They may be able to hold off failing your IVA for a number of months and then look at reducing your contributions based on the new income.
Alternatively if you have made a good contribution to the creditors it is possible that the IP propose that the IVA be concluded and the creditors accept what they have and write the rest off.
Best to wait for the IP to make a decision first, just seems a shame to have been in the program for 30 months after contributing for so long
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
Real People ..... Real Debt Solutions
www.revivauk.com |
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jojopotato
Starting Member
13 Posts |
Posted - 11 January 2009 : 10:54:32
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Thanks for your replies. My iva was only paying 25p in the pound - it was 27p but due to an increase in creditors claims it went down, so I don't think I've made much of a dent in the IP's fees yet! I think we owe in the region of £40,000 and were paying back 9,000 after fees. To be honest we are stuck in our current rented property until May, then we can get somewhere cheaper and hopefully hubby will have a full time job! It would be great if our IP could extend the payment break for a few months, but the reduced payments would be very small. Probably going from £277 to £100 per month. I will write to them tomorrow (it's DFD so even if I call them they will just say put it in writing!). I am thinking of asking my parents to lend me the money, they already know we are thinking of bankruptcy and have told us to just do it. Not sure if they will give us the fees though!
To be honest it seems to take my IP months to make a decsision on anything - I had to miss my first payment in December and one in January before they even called to say payment break was ok last week!
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 11 January 2009 : 11:48:37
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Hi Jo
Do let us know how things go for you.
Jo
x
Needafriend says:
Just always remember one thing, Your not alone, your not the first and you wont be the last.
23 Weeks down
29 to go
For more info on how i have come through bankruptcy and for links to help with filling out the forms, I&E, Car Valuations, etc, etc, you can read my blog here called:~ Needafriend's Info on Bankruptcy :-)
http://debtfreejo.blogs.bankruptcyhelp.org.uk/
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leakie
Junior Member
United Kingdom
158 Posts |
Posted - 11 January 2009 : 18:37:42
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Hi Jojopotato
I have just gone BR,
I was in a failed IVA.
I would do what Paul said first,
then if that does not work, let the creditors make you BR, then the fees are paid for you,
at least you will have 3 months IVA payments to help with the fees, if they won't make you BR.
That is what I did , and luckily for me I did not have to pay a penny in fee's.
When you do decided to fail the IVA at least you will know roughly how long you haveto BR
mine was approximately 4 months from my first missed payment.
All the best
Leakie |
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leakie
Junior Member
United Kingdom
158 Posts |
Posted - 11 January 2009 : 18:44:50
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I forgot to mention
I did not have the creditors pester me, as they failed the IVA. and knew Iwas going to be made BR,
Leakie |
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Hi, I have been in an iva for 2 1/2 years
