Posted: Sun Jan 13, 2008 1:55 pm
Hi all, I am new to this forum and would really appreciate some help.
My husband and I entered into an IVA on Feb 28th 2007 on a debt of £35000.
When we initially contacted Debtmatters they assured us that the monthly repayments would be no more than £350. Great, or so we thought. A while later DM advised us, after having rec'd our income/expenditure, that the repayments would be approx £450 per month. This was still less than we were repaying our various creditors, so we jumped at the chance.
The proposal went to the creditors meeting on the 28th Feb and it was accepted, albeit with modification of an extra £150, bringing our repayments to £600 a month. At the time it WAS sustainable as I was earning £1160 a month and my husband earning £1250. We then proceeded to pay religiously and on time.....until I was forced to change my job.
My new job is not as well paid meaning that I now earn £350 less a month than before, and this has had a huge effect on us being able to sustain the £600 a month repayments. In early December 07 we asked DM if we could have a payment break due to Xmas and us actually struggling to repay the monthly £600. At the same time we asked whether they would consider a reduction in our monthly repayments from £600 to £400 a month to reflect the drop in my salary. DM advised that the payment break would be fine as we were ahead of ourselves in terms of payments anyway so a break would not make much difference. DM then confirmed that they would take the proposal to our creditors for another meeting. In Jan 08 we have only paid £300 instead of the agreed £600 but intend to pay another £100 next week as this is really all we can afford, and we are still struggling as it is. So, to date we have missed 1 payment and will only have paid £400 this month.
What are the chances that the creditors will agree to our proposal of £400 a month? (considering I have dropped £360 a month AND provided proof by way of wage slips).
Is there implications on us having only paid £400 this month as opposed to the £600?
Would anyone suggest bankruptcy? We do not own our home BUT we have a car on HP (3 years into a 5 year agreement in my husbands name) which my husband needs (reliable etc) for work. Will we have to give this up as a condition of going bankrupt?
If we have to lose the car would I be able to go bankrupt and my husband carry on in an amended IVA?
Any advice at all on any/all of the above would be great, we are going frantic here, please help.
Thank you
s herbert
My husband and I entered into an IVA on Feb 28th 2007 on a debt of £35000.
When we initially contacted Debtmatters they assured us that the monthly repayments would be no more than £350. Great, or so we thought. A while later DM advised us, after having rec'd our income/expenditure, that the repayments would be approx £450 per month. This was still less than we were repaying our various creditors, so we jumped at the chance.
The proposal went to the creditors meeting on the 28th Feb and it was accepted, albeit with modification of an extra £150, bringing our repayments to £600 a month. At the time it WAS sustainable as I was earning £1160 a month and my husband earning £1250. We then proceeded to pay religiously and on time.....until I was forced to change my job.
My new job is not as well paid meaning that I now earn £350 less a month than before, and this has had a huge effect on us being able to sustain the £600 a month repayments. In early December 07 we asked DM if we could have a payment break due to Xmas and us actually struggling to repay the monthly £600. At the same time we asked whether they would consider a reduction in our monthly repayments from £600 to £400 a month to reflect the drop in my salary. DM advised that the payment break would be fine as we were ahead of ourselves in terms of payments anyway so a break would not make much difference. DM then confirmed that they would take the proposal to our creditors for another meeting. In Jan 08 we have only paid £300 instead of the agreed £600 but intend to pay another £100 next week as this is really all we can afford, and we are still struggling as it is. So, to date we have missed 1 payment and will only have paid £400 this month.
What are the chances that the creditors will agree to our proposal of £400 a month? (considering I have dropped £360 a month AND provided proof by way of wage slips).
Is there implications on us having only paid £400 this month as opposed to the £600?
Would anyone suggest bankruptcy? We do not own our home BUT we have a car on HP (3 years into a 5 year agreement in my husbands name) which my husband needs (reliable etc) for work. Will we have to give this up as a condition of going bankrupt?
If we have to lose the car would I be able to go bankrupt and my husband carry on in an amended IVA?
Any advice at all on any/all of the above would be great, we are going frantic here, please help.
Thank you
s herbert