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gunx01
Starting Member
23 Posts |
 Posted - 08 May 2009 : 20:12:37
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I am currently in an IVA (coming upto the 3rd year)of which I have missed 2 payments and looks like I will miss a couple more as I have lost my job.
From what i've read after 3 missed payments I will be made bankrupt.
Part of my IVA agreement required me to sell my car (owned) which at the time was worth £7000 and give half to my IP. After being unable to sell my car it is now worth £1900. Are they able to take my car away? It is the only asset I own. Problem is I need it to take my wife to work (as no public transport at 5am)and also for her regular doctors and hospital appointments, I will also need it when I get a job to travel to and from work. |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 08 May 2009 : 20:50:15
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Hi,
Firstly, may I suggest that you speak to your IP as three years into your IVA it is in no ones interests for it to fail. You may be able to get an official payment break whilst you look for work.
If you miss three payments without permission, then your IVA will fail, but I suggest you check with your paperwork to see whether or not there is any money put aside to petition for bankruptcy or whether or not you have to do it yourself.
As to the car, as far a br goes, you should be ok if it's not worth tht much.
Again, something to take up with our IP, but I do strongly recommend that you speak to them.
The glimmer gets brighter all the time
Jan
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sjbyron
Average Member
United Kingdom
746 Posts |
Posted - 08 May 2009 : 21:02:00
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Hi
Why dont you speak to your IP and ask if a variation with a 6 month payment holiday can be put in.
Or could you raise enough money to have a full and final offer to your IVA
Stu J Byron |
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gunx01
Starting Member
23 Posts |
Posted - 08 May 2009 : 22:08:11
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I have spoken to my IP about being out of work. I just thought that if bankruptcy does happen that I'd probably be better off as I am being thrown out and need more money for rent and bills.
Currently myself and wife are living with my parents and we pay board but in the real world we would need alot more money for bills, rates and food. I just don't know what to do!
If I ask for the 6 months and get it I won't have enough money for the above, if I go for bankruptcy and get a job I would have enough money for rent and such. |
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gunx01
Starting Member
23 Posts |
Posted - 08 May 2009 : 22:12:43
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| As I'm not too clues up on these things, can I just ask why it isn't a good idea to go into BR after 3 years in an IVA? Wouldn't it make me debt free? I have no plans for getting credit anymore apart from a mortgage but that would a few years still. |
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 08 May 2009 : 23:22:20
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BR would make you debt free although you may have to pay an IPA for the next 3 yrs. If you are 3 yrs into an IVA then you only have 2 to go so it is worth trying to salvage the IVA if at all possible as you are more than half way though the IVA and the creditors and IP are aware of this.
IF you do declare BR then it will be 1 yr in BR and another 6 yrs before your credit rating can start to be repaired. You will also need to make any credit companies aware that your have been declared BR if you want to borrow more than £500 i.e. a mortgage. |
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gunx01
Starting Member
23 Posts |
Posted - 09 May 2009 : 00:34:55
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Not looking to get any credit for anything at the moment let alone a mortgage.
My main priority at the moment is to be able to afford somewhere to rent and pay for bills and food and also keep my car to be able to get me and my wife to work.
Keeping my IVA - seems like I won't be able to rent anywhere as won't have enough money.
Going Bankrupt - be able to rent somewhere and pay bills and food and be able to keep my car (no car = no income at all - will they take this into consideration knowing that my wife has bills on her name too?)
Wouldn't I be better off going bankrupt rather than keeping up with my IVA for another 2 years as I would have more money monthly to pay for living expenses.
Apart from having a bad credit record for the next 6 years what would be the downside of me going bankrupt now considering my current situation?
(So sorry for the long posts and the questions - very stressed!!) |
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gunx01
Starting Member
23 Posts |
Posted - 09 May 2009 : 00:46:35
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| You say in BR that I could still have to pay for the next 3 years, I thought if your BR all debts are cleared and your given a fresh start |
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leakie
Junior Member
United Kingdom
158 Posts |
Posted - 09 May 2009 : 06:16:38
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Hi Gunx01
In Bankrupcy, you could be given what is call an IPA,
This would mean that a percentage of your disposable income, would go to the OR to pay the creditors, This last for 3 years.
hope this helps
all the best
Leakie |
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 09 May 2009 : 07:54:01
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The IPA is based on the your income and can go up or down if your income changes. The OR goes through your outgoings (rent, shopping, utility bills, etc.) and if there is more than £99 left you would need to pay a percentage (between 50% and 70%) of this. This would mean that you should always have some money left over each month, which is an advantage over an IVA.
If you need your car for work and the OR deems it to be worth less than £2k then you should be able to keep it. Check on the Parkers Guide website as this is what the ORs use. |
Edited by - gettingoutofdebt on 09 May 2009 09:46:54 |
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gunx01
Starting Member
23 Posts |
Posted - 09 May 2009 : 09:42:02
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| Was not aware that they would place an IPA. Does anyone have an I & E sheet with the maximum amounts allowed on expenditure? |
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gettingoutofdebt
forum expert
2418 Posts |
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jojopotato
Starting Member
13 Posts |
Posted - 09 May 2009 : 10:21:17
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Hi, I recently declared bankruptcy after being in an IVA for 3 years. Myself and my husband had interlocking IVA's and he lost his job back in December. We had the authorised 3 month payment break, but after it becoming obvious it was going to be very hard for him to get a job anywhere near the same wage as before we decided the best thing to do was go bankrupt. We were also paying a very low dividend back to creditors anyway so after 3 years we had only paid IP's fees. We both have cars which we were allowed to keep and we didn't get an IPA as we only have £85 DI each. I have to say now that we are so relieved not having to worry about the IVA and bankruptcy has not been anywhere near as bad as we thought. We used the same I&E as for the IVA and the OR had no probs with it. Hope some of this info might help! Good luck whatever you decide to do.
JoJo
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gunx01
Starting Member
23 Posts |
Posted - 09 May 2009 : 12:04:51
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| How do I attach a copy of my I&E report to this thread? It is in '.xls' format. |
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 09 May 2009 : 12:17:31
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| I don't think this forum allows attachments. Can you copy and paste the I&E? |
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gunx01
Starting Member
23 Posts |
Posted - 09 May 2009 : 12:31:46
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Heres my I&E - sorry haven't put the '£' signs in. (this also includes my parner's income & expenses)
Do my expenses seem resonable?
Rent - 500
Housekeeping,including food and cleaning - 110
Travelling to and from work and(personal transport) - 155
Travelling to and from work(public transport) - 47
Clothing - 112
Mobile phone costs - 45
Dry cleaning - 15
Prescriptions - 6.85
Hairdressing and personal care - 38
Driving Lessons - 18
Holidays - 20
Social and entertainment expenditure - 50
Alcohol - 30
Cigarettes - 60
Car Insurance - 35
Petrol (Included above as 'Travel Expenses to and from work')
Road Tax - 17
Servicing - 8.33
MOT - 3.33
Manintenance (Repairs) - 2.20
Breakdown Cover - 2.91
Loan - 240
Credit Card - 25
Other - 106
Catalogue - 8.88
TOTAL EXPENDITURE = 1673.24
Wages - 650
JSA - 218.83
TOTAL INCOME = 868.83
TOTAL DISPOSABLE INCOME = -804.41
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Edited by - gunx01 on 09 May 2009 12:33:28 |
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Topic |
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IVA to Bankruptcy (HELP!!!)
