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sweetfire
Junior Member
173 Posts |
 Posted - 14 March 2008 : 12:47:29
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I am seriously considering bankruptcy as I have fallen pregnant and in the middle of an IVA
I only have £9300 to pay and the overall debt was £25k, with it ending in 2010.
I don't have any assets so I'm not worried about what they can't take, but should I switch banks now? as I don't want them to take what little money I have?
What is the best plan for these sort of things?
I've written a letter to my IP to ask the creditors to consider taking what I have paid as final settlement (though doubt they will accept) as I have paid on time without fail over the last 4 yrs and feel that bankruptcy is such a harsh penalty for comitting to paying my debt back.
If they say no and make me bankrupt, what was the point of even paying any money back in the 1st place, I could have taken bankruptcy 4 years ago and be free of it in 2 years...(sorry venting)
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 14 March 2008 : 15:08:58
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Hi sweetfire and welcome to the forum
i don't follow some of your dates sorry
How long have you been in an IVA and what are you paying per month.
If you are in the last year it seems a shame not to complete rather than go Br - however the above numbers seem a little confusing.
It would also be worth reviewing what your intention is after your child is born - i.e. are you going back to work etc
perhaps with a little more background we can give you some useful advice.
Incodentally if you don't have any assets it is unlikely that your creditors would make you bankrupt as there is no benefir in this - so the bankruptcy would cost you court fees 485 ( you may get some relief after the child is born of 150)
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
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sweetfire
Junior Member
173 Posts |
Posted - 14 March 2008 : 15:32:55
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quote:
Originally posted by Reviva UK
Hi sweetfire and welcome to the forum
i don't follow some of your dates sorry
How long have you been in an IVA and what are you paying per month.
If you are in the last year it seems a shame not to complete rather than go Br - however the above numbers seem a little confusing.
It would also be worth reviewing what your intention is after your child is born - i.e. are you going back to work etc
perhaps with a little more background we can give you some useful advice.
Incodentally if you don't have any assets it is unlikely that your creditors would make you bankrupt as there is no benefir in this - so the bankruptcy would cost you court fees 485 ( you may get some relief after the child is born of 150)
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com
Sorry I realised I wasn't that clear. I've been paying into it for 4 years, and have had 1 extension due to a change of circumstances. I've been paying £340 per month and have until 2010 to pay. Ideally I want to return to work, but what happens if this changes, example, I am concerned about childcare cost etc.. and my IP even said that neither them or me should want it to continue for more than it needs to otherwise I'll be paying back over a term of 10 years at this rate.
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 14 March 2008 : 16:23:25
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10 years is an unrealistic time to repay an IVA
what is the extension you have and how long was this for?
it would be good to understand if you have been in an IVA for 4 years but have only paid 24 payments and have a 2 year extension.
Also what is the dividend payable to the creditors and what have you already paid in.
this will help us with the picture.
there are fundamtally 3 choices:
1. go Br and call it a day -
2. try to complete the IVA under some reasonable conditions
3. The IVAcompany and creditors may decide to fail the IVA and may or may not take action. If you have no assets they well not make you br so you would still need to deal with the debt.
Also you may find it helpful to view the iva.co.uk forum as well.
look forward to hearing from you
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
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Carl McMullen
Junior Member
192 Posts |
Posted - 15 March 2008 : 00:44:40
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HI Sweetfire
You say in your original post that you have fallen pregnant....
I expect this will mean your income will reduce but at what point, has it already gone down ?
Also you say that you had 25k debt and say you are currently paying £340, if you have paid £340 for the last 4 years this tells me you have probably paid back about 45p in the £, what your original proposed dividend ?
And as Paul has already asked why was your IVA varied to extend by another 12 months ? |
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sweetfire
Junior Member
173 Posts |
Posted - 17 March 2008 : 10:49:31
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quote:
Originally posted by Carl McMullen
HI Sweetfire
You say in your original post that you have fallen pregnant....
I expect this will mean your income will reduce but at what point, has it already gone down ?
Also you say that you had 25k debt and say you are currently paying £340, if you have paid £340 for the last 4 years this tells me you have probably paid back about 45p in the £, what your original proposed dividend ?
And as Paul has already asked why was your IVA varied to extend by another 12 months ?
My IVA was altered as I had moved home and my bills/rent had increased, they reduced the payments by £70. I was unsure why they extended it so much as originally i was told that no extension would be considered.
My income has not yet come down as I am still temping, but I really want to save my money for the baby asap. I only have around 4 months or so of employment and I am going to be a single mum so i will need all the money I can to help me prepare!
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sweetfire
Junior Member
173 Posts |
Posted - 17 March 2008 : 10:51:51
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quote:
Originally posted by Carl McMullen
HI Sweetfire
You say in your original post that you have fallen pregnant....
I expect this will mean your income will reduce but at what point, has it already gone down ?
Also you say that you had 25k debt and say you are currently paying £340, if you have paid £340 for the last 4 years this tells me you have probably paid back about 45p in the £, what your original proposed dividend ?
And as Paul has already asked why was your IVA varied to extend by another 12 months ?
What happens when an IVA is failed without action? |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 17 March 2008 : 14:50:36
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Hi sweetfire
Bankruptcy is a big decision and you really need to be sure it is the right thing before taking the step.
It is quite possible - and no doubt one of the options documented in your IVA proposal - that if your IVA were to be failed the creditors may choose any of the following options:-
1. do nothing. effectively this means that the monies you have paid into the IVA are proportioned between the creditors and the IVA company , and the creditors are then free to pursue you for the balance of the debts.
2. The creditors may decide that they wish to instruct the supervisor to petition for our bankruptcy.
3. They could possibly look at an alternative modification that would significantly vary the IVA but allow it to continue.
I hope this helps
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
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Helpful Advice
Average Member
United Kingdom
646 Posts |
Posted - 19 March 2008 : 13:12:47
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Hi Sweetfire,
I agree with Paul, you have come a long way into your IVA, it would on one hand be a shame to have got this far, however you have to look at was is finacialy better for you moving forward.
View my Blogs at:
http://HelpfulAdvice.blogs.bankruptcyhelp.org.uk/
Bankruptcy Specialist
England,Jackman & Spacey
WebSite www.ejands.co.uk
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I VA ending in 2010 but considering bankruptcy
