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69076H
Junior Member
183 Posts |
 Posted - 26 March 2008 : 11:54:11
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After having a failed iva and after being told by the iva company the best option for us would be bankruptcy could anyone give some advice to help with my fears our local citizens advice have a 3 week waiting list for appointments and I would like some advice now.
The only one creditor has contacted us so far and so far have been pretty understanding they hold 2 of our debts for £920 and £7027 they have asked me to make a token payment on both accounts saying this will keep the account open until I've seen the citizens advice but don't know whether I should do this until I've recieved contact from all creditors.
My other fears are about the house and possessions we've paid our mortgage all through the iva we have about £44000 still to pay on our mortgage the house is valued at about £55000 but I'm also concerned about our 3 childrens possessions, as they are my step children they have games consoles pc and sky these things have be collated over many xmas's from 2 sets of parents as these are the only real assests we have. As are things our parents have purchased ussuch as a plasma tv. Will this mean that because we have no assets we'll have to pay £100's back throughout the bankruptcy or for years to come.
Bank accounts are another worry we had real problems opening a new bank account when we started the iva as we were told by the iva company to move bank accounts but after going to every bank in our local town only NatWest were any help at all and I have to have my wages paid into a bank.
One last thing regarding the iva company when they closed the iva we had paid in £4900 which seemingly they say they are entitled to as there fee should they be able to keep such a large amount as we could have paid some of the lesser debts off with some of that money. |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 26 March 2008 : 15:31:58
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Hi,
A few questions what is your total level of debt?
What was your monthly payment within the IVA?
Do not worry regarding your household items as these are unlikely to be touched in Bankruptcy.
Bankruptcy will work out your income and expenditure and any disposable income left after your expenditure.
The Official Receiver will then work out through an Income Payment Agreement what you can afford to pay back to your creditors.
If you are subject to an Income Payment Order then this would last for three years.
As far as your Bank account is concerned then have a look at the CO-OP cashminder account as they are Bankrupt friendly.
Unfortunately the fees will be kept by the supervisor as this would have been subject to the agreement you signed and the creditors would have accepted.
All the best
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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69076H
Junior Member
183 Posts |
Posted - 27 March 2008 : 09:16:09
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| Our debt started off at about £70000 but we started the iva process in july 2005 paid £460 for 10mths then we found out the iva company had not put forward the iva proposal to our creditors and in that time all our interest charges were added and if I remember correctly they then said the debt had risen to £140000 when we entered into the new iva in july 2006. The iva was to run for 6yrs with a payment of £590. |
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Helpful Advice
Average Member
United Kingdom
646 Posts |
Posted - 27 March 2008 : 20:35:12
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Hi,
With this level of debt (which certainly grew in 10 mnths) and the small level of equity I think Bankruptcy may be a far better option. I would like to confirm your house price and Mortgage position you say it is £55,000 value with a mortgage of £44,000 is this correct?
What is your disposable income?
As Julian says you could be looking at an income payment order which would only last for three years rather than six and it will be calculated on a more affordable scale to that of an IVA.
I hope this helps,
Kind Regards,
Brett England
Bankruptcy Specialist
England,Jackman & Spacey
WebSite www.ejands.co.uk
View my story at:
http://www.bankruptcyhelp.org.uk/forum/topic.asp?TOPIC_ID=594
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melanie_giles
Senior Member
1191 Posts |
Posted - 27 March 2008 : 22:24:25
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| Not that this matters at such late stage, but how unprofessional for your IP to take payments from you for 10 months before proposing the IVA. Was there any reason for this, and could you share the name of that company with us? |
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69076H
Junior Member
183 Posts |
Posted - 27 March 2008 : 23:42:25
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Between my wife and I we take home about £2000 P/mth after mortgage bills insurance car tax fuel and shopping we would have about £500 we have a car worth about £1500 which is used between us for work.
The company in question was debt free direct and the only reason we were given was the person who was dealing with the iva hadn't put forward the proposal to the creditors and we only found out we had a problem was when we had bailiffs at the door. After the 10 mths the person in question didn't work there anymore.
I would advise anyone thinking of dealing with debt free direct to give it great consideration and seek advice before making decisions. We were actually told about debt free by a bailiff who recommended another iva company but we had already started the process. |
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melanie_giles
Senior Member
1191 Posts |
Posted - 28 March 2008 : 00:08:01
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What shoddy service, but an IVA process is a formal contractual agreement so weren't you chasing up the fact that proposals were never forthcoming for you to sign during that 10 months, or did you just not receive any proper advice as to what the procedure involved?
Have you thought about proposing another IVA with a different IP? Appreciate that you may not feel like going through the process again, but if you feel you can make reasonable repayments and want to protect your property, it might be worth considering. |
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69076H
Junior Member
183 Posts |
Posted - 30 March 2008 : 22:12:32
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We chasesd up on many occasions as the debt collection agencies got more and more aggressive and we followed the advice we were given I kept passing on the iva ref no. and company involved.
I would prefer to go down the iva route as from the beginning my wife and I have have done what we thought was best and the most responsible action in repaying at least some of the debt through the iva process.In your opinion would we have a chance with another IP and if so is it possible to have a recommedation.
It now seems to me that if we'd gone bankrupt in the beginning we would now be emerging from the other side of what seems to have been hell. My wife already suffers a stress related illness and if her illness gets bad she has to stay off work and this results in my wife not getting paid. |
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melanie_giles
Senior Member
1191 Posts |
Posted - 30 March 2008 : 22:17:48
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Any qualified IP would be able to give you advice as to the chances of getting a second IVA accepted, but do choose a firm who has experience of this and good links with the creditors concerned, as they will of course be sceptical of the viability of a second attempt.
I cannot give you a recommendation, as this forum does not allow professionals to solicit business, but you might want to look at www.iva.com which gives feedback on all IPs posted by their own clients. |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 31 March 2008 : 00:20:59
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Hi 69076H
Melanie is very gracious about her skills and relationships with the people that count at the various banks.
May I suggest that you have a quick look at the sister site iva.co.uk where you will see many of melanie's clients speak extremely highly of her.
As she says it is a delicate matter to get a 2nd proposal accepted so soon - if it is posible then she is your man!
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 31 March 2008 : 08:35:14
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Hi 69076H,
As you can see your options are not limited to just Bankruptcy and it would certainly be worth having a conversation with Melanie.
She will be able to give you the full details of what level any new proposal will be and make this as affordable for you as possible, this will then give you the opportunity to weigh this against Bankruptcy.
All the Best
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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Bankruptcy fears
