i am currently in iva, having a baby in july. this will mean i lose income of 1000 pounds a month and will be getting only 123.06 per week. out of this i need to pay morgage 412 pm, 381 iva pm. i have contacted iva company telling them i am worried about this and see bankruptcy as my only way out... they ghave advised it wouldnt be... have they got my bet interests at heart or looking out for more money off me? i am at my wits end with worry and cannot see how i will ever be able to live properly and look after myt baby. i dont know what to do anymore. any advice please?
Hi Krissi and welcome to the Forum.
Your IP firm can organise a payment break break and restructure the payments based on your new income when the baby is born. If you think there is no way of continuing then bankruptcy may be the only viable option but speak to your IP themselves as they will help you all they can. Congratulations on the impending birth and try not to let the IVA spoil anything. I am sure your IP or their staff will take time and explain everything because it is not an unusual occurrence.
Not sure how they can give out that sort of advice! What are you currently paying into your IVA, and how much do you think you will be able to pay after the baby's arrival?
I am not sure, i know i will get paid 123.26 per week maternity, this is for 6 months. my mortgage stands at 412.28 per month so that money would onl,y just cover the house payments. i am not fully sure of the other money i would get from child benefits etc.. then obviously i have my council tax and other bills to pay. i wont be a single mum but cannot expect my partner to pay into my iva. the iva company i am with have advised I try to sell my house but the way the property market is at the moment and with 6 houses up for sale just on my road i feel it is going to be un sold for many months. i am not looking at returning to work full time in the new year as i have a very demanding job of 54-60 hours a week. I dont see how i can afford to be paying into my iva which i am 8 months into. i understand it is my fault as to why i am in this mess in the first place and just wish i wasnt. i have just 3 months of working left so that will mean 5 normal months of wages... obviously i am happy to contonue with my payments as normal whilst still on full pay, but feel i just want to know what is looming, but instead it seems they want to keep me hanging on right till the last minute. this is getting me very depressed and worried.
You should get this sorted out quickly otherwise it is pointless paying for another five months and the IVA failing anyway. It would be better to save the money to pay for your bankruptcy and let the IVA fail itself if that is the way to go.
I agree - from what you are saying, coupled with your plans for the future, bankruptcy looks a favourable option to enable you to move forward and concentrate on the needs of that little one.
To fail your IVA you just stop paying. After three months the IP can then terminate the arrangement and you can petition for bankruptcy. Speak to your IP and advise what you are doing which should stop them from calling or chasing the arrears.
sorry, if i let the iva fail, by stopping my payments the iva company i am with cannot stop me doing this can they? they keep trying to talk me into things that i just dont want to do, my heart is just not in trying with it anymore. would i then be on my own with regards to bankruptcy or would they usually talk me through it?
The IVA company cannot stop you. If you pay by direct debit or standing order instruct your bank to cancel the payment and advise your IP. If they want to discuss it further it is no harm but do not be pressurised into something that is not sustainable.
The bankruptcy will be your own responsibility but there is plenty of free help available here or on the sister site www.bankruptcyhelp.org.uk
thankyou, the advice given has helped alot. i have cancelled my direct debit for payments of iva. need to call them monday. do i now have to let the next 3 months pass before starting with bankruptcy proceedings or can i start this process almost straight away?
You will need to wait until the IVA fails before you can petition for bankruptcy. Its not as bad a process as you may think and if you read a few of the BR blogs they may be helpful to you.
good luck with the baby,and best of luck for the future.
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
just spooke with iva company today... they are terminating iva now as per my wishes. they were concerned i have no equity in my house, house valued at 69000, motgage with fees stands at 67000 however the houses alongside mine are selling at 60000 or less. they say this means going br would mean i keep the house because of equity. would there be terms and conditions for this? i thought bankruptcy meant you lose everything?
