bankruptcy? or not?

[In-a-pickle]

ok, our situation is this:

18 months into IVA paying back 70 p in £ on £100,000

have dipped into overdraft last two months

considering bankruptcy

house in negative equity

one car worth about 5K (essential to have a car for work)

a couple of questions....the CCC guidelines for "allowances", how strict are they? (eg they say £130 for fuel and parking and we pay that on parking alone!)

is the maximum you pay in an IPA 70% of what is left, regardless of your total income?

cheers

pickle

[David Mond]

Hi and welcome to the Forum.

Your IVA contribution and agreement with creditors promised a big payout.

What has currently gone wrong?

18 months out of 60 is nearly one third through.

Lets have more information please before I can respond.

[kallis3]

Hi,

Firstly speak to your IP to see if you can reduce your payments if you are struggling. You should not really be using an overdraft. You shouldn't really have one at all.

If you decided that you wanted to go BR then you would have to let your IVA fail by missing three payments.

You would mostly likely have to sell your current car and get a cheaper one as you aren't allowed one over about £2,500.

You will pay between 50 and 70% of your disposable income.

If your house is in negative equity you will be able to buy the BI for £1 plus £211.

Your credit record will be shot for a further six years from the date of the BR.

Speak to your IP first though to see if there is anything they can do for you.

[In-a-pickle]

we are in for 72 months (final year in lieu of possible equity-although none, not 60)

our allowances are reasonable, can't really explain why wheels have fallen off

slight increase in petrol costs with change to job location

roof on house may need replacing (quote £12,00)

both of us working hellish hours to maintain payments and pretty miserable

pickle

[kallis3]

I would definitely speak to your IP first before deciding anything else.

Perhaps your payments were set too high in the first place?

You IP can authorise a payment drop of up to 15% without resorting to the creditors.

If you get no joy with the office staff, you could try contacting your IP directly via this link:

http://www.insolvency-service.co.uk/newipsearch.htm

[David Mond]

Sit down and list all of your outgoings and make sure that you are keeping to the budget - if not examine why.

You can take a payment break for the special repairs to roof £1,200 or £12,000?.

Discuss with your IP and see what he/she suggests.

Your DI of between 50%-70% in bankruptcy would last for uo to 3 years.

It may well be that the contribution set is too high and a variation could be proposed.

First port of call is your IP - if no joy come back here to the Forum.

[In-a-pickle]

Thank you, I shall.

[Julie]

Inapickle - hopefully you're IP will come up with a solution. At least give them a chance.

If you do not get the result you want come back to u.

Good luck xx