www.iva.co.uk

Hi,
My husband has 15000 worth of debt and finally decided to go with debtmatters for an IVA. However due to the nature of his job, he hasnt earned nearly enough to pay the IVa payments and stopped the dd to them 3 months ago. We havent heard anything so im going to call them tomorrow. Im very concerned that its gone to far and they will go for bankrupcy. We have a 50% shared ownership property and theres no equity as we have only had the property for 2 years. Is there any good advice you can give me and are we going to lose our home? Husband is sticking his head in the sand and is worried about speaking to anyone.

Many thanks
a worried wife

Hi there and welcome to the forum worried wife. Only my opinion and the technical experts will be along but tell him to lift his head and deal with the situation and the best person to speak to is your IP. He may be able to salvage the situation or get advice on the best way forward. Tell himn not to panic just to deal with it ,I am sure it can be sorted.
I had a great big pile of sand I buried myself in till only my feet showed lol

All the best

Ang

Hi there

If you are stuggling to pay what I imagine are relatively low payments, then you might want to consider whether bankruptcy proceedings are a better option for you. As there is no equity in your property, it would seem that such proceedings are unlikely to affect you greatly, and would remove a lot of the stress and worry from your finances.

Unless your husband is self-employed whereby HMRC would require Bankruptcy as an exit route from a failed IVA, or unless the Supervisor is holding enough money, it may well be that the preferred route will be simple termination.

The typical failure procedure is as follows:

Arrears of (typically) 3 months or more are accrued
Supervisor issues debtor with breach notice, giving 1 month to rectify default or make proposals for rectification or variation of the VA
Supervisor then calls meeting of creditors to propose either termination/bankruptcy or to propose variation.

Your husband will have had therefore a breach notice and a notice of the creditors meeting if things have got that far.

Take a long hard look at how much you can realistically afford to pay. Depending upon the numbers a variation may make sense. I suspect that DM will wish to keep the wheel on as many cases as possible at this time, because of their own position. If a variation is not feasible, then you have to look at the Bankruptcy option as suggested by Melanie.

Speak to the Supervisor asap.

Hope this helps.