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playdohbrains
Starting Member
1 Posts |
 Posted - 31 July 2009 : 16:45:26
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Hi all
I am currently 17 months into my IVA, which is going ok BUT along the way there has been some changes and now i am thinking of making myself bankrupt.
I have had 2 overpayments from the tax credits come through just after christmas which i have been paying ok so far but they are not accounted for in my IVA - one is £35 a month and the other is £20 so basically thats my emergency money for the month gone.
Plus we moved so when our gas bill came through i was shocked, we have been on a prepayment meter for the last 4 years and we did have a debt on there and it was arranged for it to be paid back over the weeks so i assumed that was what was happening but it turns out it wasn't added on so that was another £500 left to pay so i have been paying that off £50 a month too. which is eating into our shopping money each month.
So i have these few extra debts to contend with, plus my bank has been charging me for some unpaid cheques because of the above bills going out so i have bank charges on top of that going out and its turning into a viscious circle because the amount of the bank charges its leaving me overdrawn anyway and then no money for the other bills to pay, so more bank charges!
I am setting up an account with think banking and changing bank accounts anyway so that i can claim my bank charges back.
Adding onto this is the fact i have to give up my job because i can no longer do the daytime hours i do at the moment when my son starts school in september, as i have no one to pick him up from school. I've enquired about evening hours but they have nothing at the moment.
Anyway, i'm seriously considering defaulting on my IVA and turning to bankruptcy, to clear it all and start afresh.
What i need to know it what will happen to the money i have paid to the IVA company already? Will it have been divided between my creditors already and taken off of what i owe them?
Pre-IVA i owed around 20k and i have paid back £270 a month since (with a 2 month payment break when we moved (15x270=4050)
How much is it to go bankrupt, I get working tax credit and child tax credit.
Presumably if i am still working when i go into the IVA i may have to pay into the bankruptcy for 3 years, depending on what they say i can afford?
Thanks for any advice in advance
edited to add, our house is rented through the council and i dont have any finance on a car or anything |
Edited by - playdohbrains on 31 July 2009 17:02:27 |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 31 July 2009 : 17:01:31
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Hi,
Firstly you will need to let your IVA fail by missing three payments. Your IP will then issue you with a letter of non compliance which you will need to have to go bankrupt.
It will cost you £510 pounds for the fees, which you should be able to get by missing your payments.
The money you have paid across will be firstly used to pay IP fees, and then anything else will be distributed between your creditors.
As regards an IPA, if you have £100 or more disposable income after your primary expenses have been paid out, then you will have to pay across between 50 and 70% of that.
Do you own your own house or have a car worth more than about £2000?
The glimmer gets brighter all the time
Jan
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debtrider
Junior Member
494 Posts |
Posted - 31 July 2009 : 17:05:24
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Hi Playohbrains
As I said in a earlier post 5 years is long time to be paying into an IVA, and your circumstances can change a lot in that time period.
So for some poeple they are better off going bankrupt and start afresh.
The cost of going bankrupt is £495. Dependant on how much disposable income you have after taking all essential expenses then you may have liable to an IPA. If you have more than £100 disposable income then you will be liable to an IPA for up to 3 years.
All the best
debtrider
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 31 July 2009 : 17:08:12
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Sorry to disagree debtrider, but the cost of bankruptcy is now £510 - it went up earlier this year.
The glimmer gets brighter all the time
Jan
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debtrider
Junior Member
494 Posts |
Posted - 31 July 2009 : 17:10:00
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I think kallis3 may be correct about it now costing £510 to go bankrupt. It was £495 wehn I went bankrupt last October, have the fees gone up? Mind you £15 is niether here or there.
Debrider |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 31 July 2009 : 17:13:20
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Yes, it went up round about April time.
The glimmer gets brighter all the time
Jan
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iva to bankruptcy
