www.iva.co.uk

I am/ was a self employed telecommunications engineer (sole trader) In December I was diagnosed with problems with the retina of both eyes which means I am losing my sight and I can’t drive or see to do my job properly and as such was initially put on the sick for 8 weeks (started 10/12/2010). This will be extended as the problem is getting worse. I have a further hospital appointment with a specialist this week.

My business has been struggling for the last 12 months as all my work is linked to the construction industry. We have already contacted our mortgage provider (Northern Rock) to arrange payment holidays, reduced payment and finally we changed the mortgage from repayment to interest only which they have done but only 12 months. we are still 3 months in arrears from when we had the reduced payments

We owe approx £20,000 in both personal and business debt personal is catalogues and personal loan and business is loan + credit card & tax man. We have payment protection on the personal & business loans. Nothing secured on the house but only £10-£15,000 equity left on house if that with today's house prices

My wife works approx 18hrs a week part time and earns approx £500 a month with no chance of overtime and apart from a small amount of child benefit for our only daughter this is the only money coming into our home at the moment (approx £700)although I have applied for unemployment support allowance but this is not guaranteed to be granted.

If I shutdown the business and sell all the assets Van, stock tools etc it would only raise approx £3 or 4,000 as I have no tangible assets other than those stated and I trade from home. We own a 10 year old car approx value £500 to £600 and other than that we do not own anything of any value

We have no chance of re-mortgaging the house to free up some equity to pay the debt and selling the house is not an option as houses where I live have been on the market for over a year and we do not have enough money coming in to afford an IVA

If I declare myself bankrupt, as a final resort, what would I lose and what would the administrator take from the house (Mortgage is in both names) my daughter purchased her own PC, wii DS games console etc from money she was awarded when she was in a car accident would they take these items?.

I was going to write to each creditor explaining the situation with my eyes and if they could defer payment for 6 months until I have found out what is happening. If the problem with my eyes gets resolved then I would resume work and payments to them if not then I don’t know what were going to do.

Any advice would be gratefully received.

Regards
Dave

Hi Tidalwave

Was having a look at the National debthepline website today , as a first step it may be of help to you

Hi Tidalwave, get in touch with a few IP's ( they don't only do IVA's) and discuss the specifics. There are a few who post regularly on here (and you won't go far wrong with any of them), or you can have a look on www.iva.com for deatisl of others.

You should certainly seek some free advice from an IP firm so that you can decide what is best for you and your family. Bankruptcy is not the end of the world and no one comes around your home taking CDs or PSPs. This is misinformation put about by so called 'charities' and dodgy episodes of Eastenders!

You need to look at whether or not your business can continue given your illness and if so how are future profits affected? Given that you work in the construction industry there are enough problems there without your eyes being affected so creditors can be understanding about financial problems.

Finally, any IVA/bankruptcy would include any debts to HMRC which obviously depends on whether you suffer a deduction or possess a gross payment card. Seek some advice and hopefully you can get pointed in the right direction.

Thank you everybody for the advice

I will contact an IP tomorrow after I have been to the hospital and found out how bad my eyes are.

Is there a company that people recomend we could do with someone who will come to the house so we can go through every option but it has to be free as we have no money to spare

regarding my business there is only me and a part time labourer who can't drive and is not legally allowed to work on the circuits I can so if I can't work there is no business

Regards
Dave

if you have a look on www.iva.com there is a list of companies and feedback. I think there is a map of uk with pin points as to where they are. because you were self employed you will have to have a face to face with an IP as a matter of course.

There are a number of IPs that post on here along with other IVA professionals. I personally chose IVA Advice Bureau as Melanie Jones came highly recommended and I have no complaints at all, total praise. Others on here also come highly recommended, they go that extra mile to help out.

Where abouts in the country are you. its worth a look on that link

should have added that most of them will not expect any money from you up front, IP fees come out of the payments that are made over in an IVA.

If any ask for money up front, politely decline and move to the next on your list.

I hope you got good news from the hospital.

As regards your debt problems, bankruptcy could be an option. Your daughters possessions would be safe, as would your own unless you have anything worth a lot of money!

I agree that you should speak to a professional via the link posted above. The companies on there have reviews and some of them post on here. The advice is free and impartial.

Good Morning Tidalwave, I hope your appointment went ok and your eyes are not worsening any more.

Contact a couple of companies to compare what you are being told and to see where you feel most comfortable moviong forward. This is such an important decision you need to know you are making the right one. And of course you'll have your new found forum buddies on here to support you along what path you choose.

Regards,

Hi - good luck at the hospital today. I hope you get a positive result x

Thanks for all the support

Hospital appointment is this afternoon

I am in Leeds, West Yorkshire so Will contact a few IP's as you have suggested

Already has feedback from one from one I contacted prior to posting yesterday they sugested a Debt management agreament to start with and if I can get back to work then possibly start an IVA

will keep you all informed

Thanks
Dave

Hi Tidalwave,

I am a nearly qualified Insolvency Practitioner with 5 years experience in the industry.

I understand your situation and am happy to offer you my advice.

You may wish to try and make an informal arrangement with your creditors, but be aware that these arrangements are not legally binding and the creditors can change their mind at any point and demand full repayment plus interest.

Based on the information provided, I don't believe that an IVA would viable, mainly due to the lack of sufficient household income.

Bankruptcy would be your best option for a number of reasons;

Both your personal and business debts( assuming they are all under your name or you have joint & several liability) will fall into the bankruptcy and you will, ordinarily, be discharged from them within 12 months.

The equity in your home is unlikely to be realised by your Trustee in Bankruptcy due to the low level of equity (especially if the equity is to be split with a joint owner - your wife?).

All tools and vehicles of trade will be excluded form your bankruptcy estate as will all items of 'basic domestic need' and below a 'reasonable replacement value' i.e no luxury items such as a Rolex or Ferarri.

Your daughter's assets will be unaffected by your bankruptcy, so don't worry about that.

Be aware that as the home is subject to a secured mortgage, you will need to keep up with repayments regardless of bankruptcy, in order to avoid repossession.

Bankruptcy does have its drawbacks including being advertised, affecting your credit rating for at least 6 years and you are unable to obtain credit over £500 without disclosing that you are bankrupt.

Good luck at the hospital.

Regards

Avner

Hi and welcome.

I have removed your details from your signature as you are not allowed to post those unless you are a forum expert, and email addresses and phone numbers are not allowed at all.

Fingers crossed for you this afternoon Dave.