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m and v
Average Member
United Kingdom
760 Posts |
 Posted - 04 April 2008 : 09:30:19
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I have a failing IVA. Over the last two years I have had to use my husband's bank account to pay in my wages. Should I open a sole account for my wages now before I go bankrupt? Will the OR want to see my husbands bank account statements for the last 12 months? All the debt in the IVA is mine. My husband has his own debts that are not included the IVA, although they used his income. Will the bankruptcy be fairer and based just on me and my debts/income? Hope you can help.
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 04 April 2008 : 10:47:55
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Hi M and V,
Welcome to the forum,
Can I ask what has changed as to the affordability of the IVA?
As far as Bankruptcy is concerned your joint income and expenditure will be taken into consideration, although your husband’s contribution towards the joint income and expenditure will allow for his debt repayments.
They will look to see if you have any disposable income after the income and expenditure is calculated, for contribution payments to your creditors in the form of an income payment order or agreement.
It is unlikely that they would want to see your husband’s statements.
As far as your income and expenditure is concerned you will find that allowances for expenditure are a lot more realistic in Bankruptcy allowing provisions for things such as holidays etc.
Also the Income payment Order or Agreement would only be a percentage of your disposable income rather than all of it as with your IVA, which will last for a three year period.
Have you any assets that could be affected in your Bankruptcy i.e. Property, Vehicles?
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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m and v
Average Member
United Kingdom
760 Posts |
Posted - 04 April 2008 : 13:59:32
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Thank you so much for responding.
My IVA has been running for two years in which time the payments have been increased from £350 to £580 - they have never taken into account my husbands outgoings no matter how many times I have rung/written and at its first review. Our CSA maintenance payments doubled in 2006 and still they increased the payments. Its become impossible to pay.
Because I pursued our bank back in 2006 for excessive bank charges (as was the thing to do at the time) they repaid some of the charges but closed the joint account we had. We were left with no option but to use an old sole account of my husbands. I have just managed to open a sole account with the Halifax - as yet haven't had wages paid into it - but am worried the OR will think it strange I have opened it just before going bankrupt (as that seems the only route) and that I have no bank statements of my own - i may be just panicking - its the norm at the moment!! Will the Halifax close that account too?
We have no assets - live in rented accomodation - I have a 13 year old car worth about £1500 - my old one was taken back and the debt included in my IVA. The car is in my husbands name - log book, insurance etc. What about my husbands vehicle? We live in the sticks and need two cars to get to work.
I had six months off work with stress in 2006 and had to have major surgery in 2007 which resulted in another 9 weeks off. I had to give up my job managing a team of 25 people because I couldn't cope. I now have a lower paid job but pay less CSA, travel costs etc.
Life revolves around my IVA - it is currently having its annual review - but I am guessing it won't make any difference.
I know I am responsible for my debts - I acknowledged that two years ago - but enough is enough - bankruptcy seems the only way out. |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 04 April 2008 : 14:20:36
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Hi,
That's quite an increase I can understand your issues.
As far as the accounts are concerned it will not make much difference where your money was paid into and it will be clear that your contribution were paid to your husbands account for joint income and expenditure.
As far as your Halifax account is concerned this will more than likely be frozen on your declaring Bankruptcy so you would need to open a new account after you have been declared bankrupt.
The CO-OP offer a Bankrupt friendly account called the cash minder account which you will be able to open after you have declared your Bankruptcy.
All the best.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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m and v
Average Member
United Kingdom
760 Posts |
Posted - 04 April 2008 : 15:08:03
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| Will we be allowed to keep our cars? They are of similar value? |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 04 April 2008 : 15:14:50
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Hi,
Yes you will be allowed to keep vehicles valued less than £2500 and as your husband is not going Bankrupt his will not form part of the bankruptcy proceedings.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 04 April 2008 : 16:53:21
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Although I'm not married I live with my partner. When I went BR last year (failed IVA) the OR wasn't interested in how much my partner earned, just how much he contributed to the household.
Providing you need your car for work you shouldn't have too much of a problem keeping it. I could justify keeping mine as I wouldn't have been able to get to work on time.
To echo Julian, I would recommend the Co-op Cashminder. I have this account and it's excellent.
Tomorrow is a mystery, yesterday is history, today is the present, a gift to make the most of. |
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melanie_giles
Senior Member
1191 Posts |
Posted - 04 April 2008 : 23:42:15
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| How ridiculous that your IP is prepared to see a perfectly good IVA fail due to the unreasonable increase he/she has forced you to consider. It never ceases to amaze me that this sort of thing happens, and I bet this is not with the knowledge or sanction of your IP personally. Which firm are you with and have you tried to talk to the IP to get it from the horse's mouth? |
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Helpful Advice
Average Member
United Kingdom
646 Posts |
Posted - 05 April 2008 : 19:14:24
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I am in agreement with Melanie, hopefully Bankruptcy will give you the fresh start you need and with the advice Julian has given I believe you will be in a much better position, however as Melanie mentions it is always worth trying to speak to your IP direct to see if there is anything that can be done as you are two years into the IVA and it is always a shame to go that far and still end up in Bankruptcy.
I hope this helps.
Kind Regards,
Brett England
Bankruptcy Specialist
England,Jackman & Spacey
WebSite www.ejands.co.uk
View my personal story & blogs at:
http://brettengland.blogs.bankruptcyhelp.org.uk/ |
Edited by - Helpful Advice on 05 April 2008 19:15:06 |
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m and v
Average Member
United Kingdom
760 Posts |
Posted - 05 April 2008 : 20:08:06
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Thank you all so much for your replies. My IVA is with Clearstart and they at first seemed to be the answer to our problems. Now it feels like they are making failure a certainty. I have spoken to my IVA supervisor - he too "recommends" bankruptcy. After two years I have paid enough in to cover their charges!!
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melanie_giles
Senior Member
1191 Posts |
Posted - 06 April 2008 : 02:24:26
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Why oh why do they recommend bankruptcy, where your creditors will get absolutely nothing repaid?
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
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m and v
Average Member
United Kingdom
760 Posts |
Posted - 06 April 2008 : 08:29:43
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| I have been looking around the forum and notice the IVA council have ropped up. i have been contacted by them and Bankruptcy UK who they work with. They say I have been mis-sold my IVA (in rented accomodation and no assets). They are offering to "handle" my bankruptcy, fend off the company my IVA is with, and include my case in a group of cases going to a QC/high court. Yes, they do want £1050 over 4 months. To someone in my position this seemed like a lifeline - now I don't know. Any thoughts? Should I just do it on my own and go to the court on Monday - decclare myself bankrupt before my creditors do! |
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m and v
Average Member
United Kingdom
760 Posts |
Posted - 06 April 2008 : 08:55:55
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| ...... they also said my name but not my address would appear in the bankruptcy listings in our local paper? Is this right? |
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melanie_giles
Senior Member
1191 Posts |
Posted - 06 April 2008 : 13:17:14
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If you go bankrupt your name and your address will be listed in the newspaper advertisement. What are this company actually doing for you for the £1,050 fee they ar charging you? And do you really feel that you were mis-sold an IVA, or was it a choice you made from your own free will?
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 06 April 2008 : 14:35:51
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If you really think that BR is the best thing for you please don't pay anyone to 'hold your hand' through the process - £1050 is a lot of money, and I presume that doesn't include the BR fees of £495? I petitioned for my own BR - I completed the forms online, and while they are long winded, I would certainly have begrudged paying over £1k!
Tomorrow is a mystery, yesterday is history, today is the present, a gift to make the most of. |
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m and v
Average Member
United Kingdom
760 Posts |
Posted - 06 April 2008 : 17:56:42
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| I am beginning to think I can do this on my own. I think its easy to appear vulnerable and when someone offers to do all the paperwork for you and to fend off your IVA provider it seemed too good to be true. It has really helped having your input. Skippy13 - what was your meeting with the OR like? |
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Will the bankruptcy be fairer
