We have been in an iva for 15montha sadly due to impending divorce we have sold our house and are moving on
After repaying the mortgage we have about £17000,out of which,estate agent fees,divorce solicitors,conveyancing solicitors etc will leave a balance of about £12,000
The iva have informed us we can retain some funds to make up our 2rented homes were moving into,they have asked us to write a detailed list of whats needed in each room include removal costs etc,this comes to roughly £7000 in total leaving £5000 for the iva
The advisor thought this was reasonable so weve sent the papers in,however he did say the creditors may push for bankruptcy because when our new ie forms are completed theres so little we can afford to pay now,we were paying £470,now be lucky if we can afford £100
Any thoughts plz
If you are now moving into rented accommodation, is there any reason why you couldn't consider bankruptcy? It would allow you both to move on and if your payments are likely to be £100 then it may be that the creditors won't accept it.
Be guided by your IP though.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I agree with the above if you have no house anymore with extremely low income and do not work in jobs that stop their employees being bankrupt then i would definitely consider it as an option. The allowances are reasonable and if you only have £100 on IVA disposable income you may very well have no payments to make towards your creditors at all after an assessment by the official receiver. Speak to your IP and see what they suggest. You can also seek advice and support regarding bankruptcy from the sister forum found here http://www.bankruptcyhelp.org.uk/forum/
You can also get good advice about bankruptcy on here as we do have several posters who have been through it.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Bankruptcy is not that bad these days - I think a drop to £100 is possibly not enough.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
But the fees to declare yourself bankrupt are huge plus from what i gather they take anything of any value? goodbye car, goodbye job,hope it doesnt come to that
Why would you lose your Job are you not allowed to be bankrupt with your current employer? Fees are not huge for bankruptcy about £750 i think someone said it is these days
i dont have £750 and if anything of value is taken thats my car gone and i have no other way of getting to work,
Really hope it doesnt come to that,my brother in law lost his job (worked for council) when he declared bankruptcy 8yr ago
You would have to speak to your human resources department or do an anonymous phone call to them asking hat their stance is for employees who are made bankrupt. If it's a modest car not a sports car worth 50k or something silly and you need it for work you could probably keep it in bankruptcy. Have you investigated bankruptcy or just don't like the stigma attached to it?
Plus if you wasn't paying your £470 IVA payment you would have £750 for each of you within 4 months, 3 months if you cut back elsewhere on your budget plus if the IVA do not accept £100 from you and the IVA fails you will both have £2500 equity release from the house which you could use as there would be no IVA to pay it into.
It is actually £700 for BR - you can save those payments up by letting your IVA fail.
Rather than pay across any equity to the IVA now - why not use it to fund bankruptcy fees?
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
close enough still easily saved from the iva payments or out of the equity clause if they chose that route. I would personally wait until the outcome of the variation meeting before handing over any equity money as it will be hard if not impossible to get it back
thanks davey thats sound advice however the maths dont work out,because my wife and i are splitting up we are of course paying 2 rents £400 and £500 (mortgage was 600) 2 of everything so we cant possibly still have £470 a month available to save up for bankruptcy,as regards the variation meeting we havent yet sent them in,our house is due to complete in 2 weeks,so i assume they will take the equity or should we send the forms back asap?
I would get the variation meeting set up asap and find out if they are going to allow the IVA to continue. If they don't then don't pay the equity over as you will need that for whatever other solution you choose ie DMP or Bankruptcy.
