I will soon be forced into bankruptcy

[evansben]

Can someone please tell me if £198 is classed as a windfall and if this must be paid into an IVA? I have received an offer to refund some charges incurred on a credit card that I had for £168 plus the £30 court fee. The company, capital one, have claimed that they have spoken to the supervisor and he has stated that this money must be paid into the IVA. That would mean that I am out of pocket again by paying the £30 court costs, which will ultimately be lost into the IVA.

My second question is, can an IVA be transferred to another practitioner? My practitioners are so hard on me. I have recently had to take a drop in income by approximately £4000 per year and they are refusing to lower my monthly contribution. I will soon be forced into bankruptcy is no one helps me and then I will lose my home. I am also only allowed £25 for food shopping per week, which is even harder to keep to! Please help!

[MelanieGiles]

Hi evansben and welcome to the forum

Assuming that you have the usual windfall provisions within your IVA, then the £168 will be treated as a windfall - but your IP ought to allow the costs you have incurred to be deducted. If Captial One are a creditor of yours, they will use this to offset against their debt in the first instance.

I am afraid that you cannot really change your IP - this is why it is important for all forum members thinking of entering into an IVA to choose an IP that they feel is going to look after their interests throughout the IVA. It is important to remember that the IP who supervisese your IVA is actually chosen by the creditors, to whom they owe a primary duty of care, but this also means that they must be fair with you as well or else the future of the IVA will be jeopardised if you get fed up with it - to the creditors actual detrient. Most IPs managed to find an appropriate balance. Your IP is foolish to not consider putting forward a variation to your creditors, based upon your recent salary reduction - assuming that none of your other circumstances have changed. Have you considered bankruptcy proceedings as an alternative?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[evansben]

I would enter into bankruptcy if it meant that I wouldn't lose my home, but unfortunately I would. I've been told that if I wanted to keep my home out of the bankruptcy proceedings I would need to buy the interest in it.....whatever that means??? I'm assuming that means the equity, which is approximately £19k, which I just don't have.

The reason that I asked whether such a small is classed as a windfall is that the last time I spoke to the supervisor he said they would only class payments above £500 as windfalls and now he has changed his tune. There is just no consistency between what he says and what he actually means. Is there a governing body over these IVA companies that I could make a complaint to concerning his actions?

Thanks

[tinytori]

which IP are u with hun?

[MelanieGiles]

Read your proposal and chairman's report to see if you have the £500 exemption.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Adam Davies]

Hi
I think that capital one will just reduce their claim by this amount,I,m afraid and not send you the money.
You must press your IP for a variation meeting otherwise your IVA is sure to fail if you only have £25 per week for food shopping.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[Adrian Ratcliffe]

Hi ben,
Are you single?
I have read about the governing body plenty of complaints lodged (100's) only 4 upheld.
If you have 19k equity what was the total debt in the IVA?
The OR'S interest in the property can last 3 years so you might find in a rising market that the equity is more than 19k.
Plenty of good advice on Bankruptcy on here and not as bad as is made out read all the past posts.

Regards
Adrian