www.iva.co.uk

Uur current position is that we have an IVA through Blair Endersby which is due to fail within the next couple of weeks.The reason this failed was because Blair continued to change the goal posts and to be honest, having since found the forum on line, I don’t believe we were initially advised right. Our initial thought was to stop paying the IVA and put this money to one side and save up the costs of going Bankrupt.In short though we now have the costs saved for BR.

However, there are two things which is causing me concerned and to be honest some sleepless nights. Firstly, I owe my Father about £5,500 and I understand from the forum that should I go BR then this will be included in the BR. However, my Dad is retired and now lives in Australia, as he only has his retirement income, he cannot afford to waive this money I owe or to wait until after the BR. It has been suggested about doing DMP to allow me the time to repay Dad and then may be look at going BR after I have paid Dad off?

Secondly, due to every spare penny going into the IVA, my Wife opened a couple of catalogues in my Step-Son’s name, with his agreement, I am not sure how much is owed on these, although I do understand there are outstanding balances. Again, if we went down the BR route, I am not sure where we stand as the catalogues are in his name and not my wife’s? Also to include them in either BR or DMP would that put a black mark against him?

If I remember right, I have kept all the paperwork so can look into this, I think the debt through the IVA was about £32k.

My questions are therefore could we do the DMP so that at the same time I can continue to pay my Dad and my Wife can continue paying off the catalogues and if so what would the process be?

Do you also think a DMP would be better knowing my circumstances?

Thank you Viki for your time and I look forward to hearing from you.

Mike

Hi Mike - my understand that the catalogues are in you sons name - therefore he would be responsible for the debt so any defaults would impact on his credit rating.As they are is his name - would have thought they would be excluded from any arrangement in your name

You need to include all the debt in the DMP (not the projected IVA amount.)

You need to discuss all your options availables because BR and DMP will impact again on your credit rating and you may get a payment order on you income for 3 years in BR

Hi Mike,

Im sorry to hear your IVA is due to fail in the coming weeks.
Im not sure on some of your questions, but Im positive one of the experts will be along to advise you soon.

I hope a solution can be found for you.

Was your father being paid from the IVA or outside of the arrangement? This would have had an impact on affordability and could have contributed to the failure of your IVA.

In any insolvency you must treat creditors the same and if you made token payments to some creditors and repaid your father in full, he could be pursued if you subsequently went bankrupt. While this may be unlikely given the sums involved and the fact that he lives in Australia, it would be a clear preference and the official receiver would not be happy.

You could enter a DMP and pay everyone off equally or wait until your bankruptcy is over [and any IPO/IPA] before repaying your father. A bankruptcy could certainly cause problems.

Just to let you know that the OP also posts as kentmikey. I do agree that the catalogues will be in the sons name if that is the name on the account. You would not be able to include them in either BR or DMP.