missed payments

[kahlan]

hi y'all, i've been inmy iva for over a year but have struggled with my payments and am now about four months behind. I have been speaking to my ip constantly to se if they can help me rectify thid situation but to no avail. they just keep sending out new forms to fill in. I have got to the point now where i'm considering going bankrupt, but don't feel that my ip is supporting my feelings or giving me any kind of guidance. Can i file for bankruptcy myself? if so what would happen to my flat (i own) and what's the procedure from here. Would i really be totally debt free?

any advice would be greatly received

[MelanieGiles]

If you have constantly struggled with your IVA payments, and are now four payments in arrears, it is clear that the IVA is not going to work for you.

It is very doubtfull whether your IP will be able to make you bankrupt directly, so I suggest that you file your own petition - which will cost £495 assuming you are in regular employment.

How much equity is there currently in your property? And do you have any other assets which would be at risk from bankrputcy proceedings?

You can download the bankruptcy application forms from the Insolvency Service's website and made an application at your nearest Court with bankruptcy jurisdiction. Bankruptcy lasts for just one year (normally!) and you would then be discharged from all of your debts leaving you completely debt free.

Good luch and hope it all works out for you.

[kahlan]

thanks melanie. I have no more than 5k in equity (barely that) and no other assets.

I have read other posts where people have had to pay monthly insallments towards their bankruptcy, is this right?

I'm in employment earning a good wage, but would rather loose my home and rent for a while rather than struggling as much as i am.

Do i need to contact my ip to let them know what i'm doing first?

[MelanieGiles]

How much disposable income do you feel that you have at the moment, and how does that compare with the IVA payments you agreed to make?

Under bankruptcy proceedings you may well have to pay between 50% and 70% of your disposable income to the Trustee for a three year period.

You should advise your IP of your plans out of courtesy.

[kahlan]

disposable income is around £250 (current iva payments of 320)
in the last year i've fallen slightly behind on mortgage payment, but am slowly paying this back. I'm also behind on my service charge for my flat, but again am trying to pay more back each month. Just feel that i'm constantly playing catch up!

i started a new job just after i started mt iva, and i've had a few problems with expenses - i don't get them back for about 6 weeks after paying them, so it's very hard to manage money

[MelanieGiles]

I predict that you will be paying about £125 per month under bankruptcy proceedings for three years, and that you will need to come to an arrangement with the Trustee about your equity in the flat. Do you have any friends or family who might be able to acquire the beneficial interest on your behalf?

[kahlan]

disposable income is around 250 - current iva payments of 320. Just after i started my iva i got a new job within a very large company, the problem here is expenses. I don't get these back for around six weeks after i've paid them so it's quite hard to manage money on a monthly basis.

i've fallen behind on mortgage and service charge, so have been trying to get these payments back on track rather than my iva - which is probably the wrong thing to do? - just feel that i'm constantly playing catch up

thanks again for all the advice!

[MelanieGiles]

Your employers are not helping here - and you should not be expected to fund expenditure on their behalf. Have you thought about asking for a float?

And don't write off asking your IP to vary the IVA payments downwards - if you can get your finances back on track this is also an option.

[kahlan]

unfortunately they don't offer floats or petty cash. It's mainly travel costs that i have to reclaim.

At the moment i'm trying to pay off any late payments (bank, mortgage, service charge etc.) instead of the IVA, is this wise? Should i put the iva payments before anything else until i get myself back on track? (I am almost there, probably another couple of months to go!)