can no longer afford to pay my IVA

[zeezee]

I can no longer afford to pay my IVA after 1 year. Do I need to apply for bankruptcy, and if so how would I go about it and what are the consequences of stopping payments? Thank you very much for your time.

[coco]

Hi zeezee,

i am in the same situation finding myself unable to maintain the IVA payments, and seriously considering the bankruptcy route myself so it would be good to see what feed back you get.

51 payments to go
(I apologise for my keyboards poor spelling and grammar)
http://coco.blogs.iva.co.uk

[neverending]

Hi to you both
You have both paid a year or as near as and if you go BK all this will just be kept by your IP.
Write out a realistic expenditure figure and speak with your IP.It is in everyones interest that you get through the IVA[although BK is an option at anytime and in some cases is the best option,however your IP would have declined processing your IVA if they felt that you would not be able to afford it].I guess that you have not been left with enough living expenses and this can be addressed by your IP.There are ways that your IP can help so at least talk to them before deciding for sure.
I am not 100% sure as to how bankruptcy is started regarding an IVA but would think that your IP will fail your IVA and then your creditors will petition for bankruptcy.In some IVAs the amount needed for bankruptcy is set aside by your IP.
However please try and get through this,you,ll be glad that you did..

[MelanieGiles]

In a failed IVA situation, the IP may be required to petition for the debtor's bankruptcy. This is known as a Supervisor's petition. It is usual for the Supervisor to be required to retain sufficient funds (before his/her fees) to pay for the cost of the petition. The Supervisor can then apply to be appointed Trustee in bankruptcy to your case - but is only likely to do so if there are assets to pursue.

You could also petition for your own bankruptcy, but a creditor cannot unless your IVA has fallen into default.

Good advice from Nevernding with regard to reviewing your situation, but be honest with yourself. Personally, I would book a meeting with your IP so that you can discuss your finances, and take specific advice as to the options now available to you.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[zeezee]

Firstly I would like to thank everyone that has been so good to give me their advice. Now I feel some sort of security and friendliness here I will tell all.

I am disabled (for life) and have to rely solely on Income Support and Disability Living Allowance to pay my IVA and also everyday bills, the same as everyone has to. Although the price of gas, electricity and food is always on the up, unfortunately my income is not. So I now find myself a total hermit, unable to go out to the pub or a restaurant and meet friends or even a day out by the sea, let alone a holiday! I am living in what can only be described as virtual poverty which has caused me to go into a massive depression. Not just this, my wife (who is also my carer) is also suffering this unacceptable way of life that we would have to bear for another 4 years if I do nothing about it.

In October last year she tried to commit suicide, but luckily I acted quickly and saved her. Now, my question to all who have been good enough to share their own problems and advice with me is this, 'Is it worth it'? Our lives have been devastated by this situation that was caused purely by myself in the first place, all the debts are totally mine and tried to do the gentlemanly thing by not shying away from my debts and responsibilities by applying for an IVA rather than bankruptcy, but at what price?

We eat the bare minimum of food and even then it's all very cheap and nasty food, but eat we must.

I cannot, and will not carry on for another 4 years living on far worse than the poverty line. Both my wife and myself have tried, and tried very hard to cope with the IVA but there comes a time when enough is enough. If I were to be sentenced to prison for default of my IVA I would thank the judge most sincerely, and you may ask yourselves....why? I'll tell you why. My standard of life, i.e. food, clothing, bills etc. would be much better by far and more preferable than the life my wife and I are living at this present time!

I feel so much better for telling someone (everyone here in this forum) exactly how it is, but this can't go on.

Once again, I thank everyone here for their advice and help and look forward to some more feedback, but I will leave you all with two questions.

Would you like the life that we have, and what would you do about it if it were you in my position?

For now, I rst my case.

Zeezee

[scaredkez]

zeezee, i am so sorry to hear of your situation and can understand fully about what you are feeling.
you and your wife have looked at your situation realistically and you both are the only ones that can really work out if you can live like this, you owe money not your life and i am no professional , if i were you take all the advice you can, have you any assets that will be affected if you go BR, would you lose your home, if the answer is no then you have nothing to lose, i am looking at the BR route also and although it seems very frightening the OR appears to be a lot more lenient with your out goings, however if both you and your wife are on benefits it may appear that once your BR goes through you wouldn't have any payments to make if as you say you are already living on the bread line , so you will be able to start a new and free of debt.
i hope what ever you decide to do it works out for you both, your health is far more important for both of you, keep us posted and we are all hear for you whenever you need to let it off your chest.
kerri

[freelili]

ZeeZee

You are feeling really bad at the moment and I would suggest that you and your wife talk to someone urgently about your feelings. If, as you say your lives are unbearable and you do see bankruptcy as your only option to an improvement, then you may need some professional help to get through that also. You must talk to your IP and he/she must be aware of how difficult life has become for you and then take it from there. IP's and OR's are not ogres, IP may be able to help you through this, OR will take your own circumstances into account. You must stop punishing yourself for the debt problem as what is done is done. I know it is easier said than done, I know what its like to feel so desperate also.

Good luck and take care

LILY

[neverending]

Zeezee
Your case is one that I can identify with and my heart goes out to both of you.You have tried to do the honurable thing in going down the IVA route but if life is simply unbearable then I suggest you do go down the BK route[depending on your housing situation]You will find the living allowances in BK much easier.
Four years is an eternity in poverty,I hope you take the route that will make your life more bearable.
The very best of luck

[zeezee]

Thank you all so much for your kindness and understanding. I will keep you all posted as to the advice I get and the decision I come to, but it would seem inevitable that bankruptcy is the only sane way out for us.

For people I have never met before, I'm overwhelmed with your thoughtful responses.

Thank you all so much.

Zeezee

[Skippy]

Hi Zeezee, I've just read your post with tears in my eyes. You must now forget about doing the honourable thing, and think about your health and that of your wife. I can understand a little of your situation - my dad was disabled and my mum was his carer, and although I didn't realise it at the time I know now how much they struggled on the benefits they received, and that was without the added pressure of an IVA.

Speak to your IP - they are the best placed to help you. If bankruptcy is the best way forward, and gives you your lives back then go for it. I feel very strongly that, as the banks push money onto people without proper credit checks, they have to take some of the responibility for our debts. I also hate to think of people struggling on in unmanageable IVAs, when there is another way out for them.

I know I have only said the same things as other people, but I couldn't not reply to your post. Good luck to both you and your wife Zeezee.

Four down, fifty six to go until freedom!

[zeezee]

Hi to all. I have literally just put the phone down after speaking to my IP and explaining everything that you are all now aware of.

You all advised me to do this, and was thinking that it would take quite some time on the phone to sort things out. How wrong could I have been! 4 minutes and 37 seconds....that's how long it took, and I must say that everything I've read in this forum didn't happen.

Did I get any help from my IP? The simple answer is no. She sounded as if she wasn't even listening to what I had to say, and unless I spoke to her, the phone went silent.

I asked what the procedure was for making myself bankrupt i.e. Do I have to do it myself or would she do it? The answer was 'erm, well, erm you do it yourself'. I then asked how I would do it, and the response was 'Go to a court'.....that was it.

She gave me one option, which was to extend the time on my IVA, which is still not going to solve my problem, in fact it would definitely make it worse, especially where my poor wife is concerned. In fact, when I told her of my wife's attempted suicide, she said 'Oh, right'.

After this very brief and unhelpful conversation, she said.....Goodbye.

So, my dear friends it would appear that, 'That's that'.

Bankruptcy here I come.

I don't know if I'm angry, happy or indifferent. I feel numb at the moment. Perhaps someone could tell me how I'm supposed to feel, and I'll try and act accordingly!

So, to finish, I'm now going to my local County Court to find out from them exactly what I have to do, and when I get back I'll inform you all of the outcome.

Bye for now my friends, and wish me luck!!

Zeezee

[Skippy]

Zeezee, that is a disgraceful way to treat you - I'm so angry for you! Was it actually your IP or a case manager you were speaking to? If it was a case manager I would call back and demand to speak to your IP.

Now I'm not an expert (just up to my eyes in debt myself), but I thought that if you failed your IVA by not paying, your IP will petition for your bankruptcy. If you do it yourself I understand that you will need to pay for the application. Hopefully one of the experts on here will be able to advise about that.

Good luck Zeezee

Four down, fifty six to go until freedom!

[DebtDummy]

Hello zeezee, I am not an expert. I was at one time looking into doing an IVA and found it too expensive to maintain. Your IP is correct you do petition for bankruptcy yourself. You can either fillout the application online and print it off or go to your court house and get the applications. You will require 2 applications and the fees will be £470(?) x 2 because you and your wife will be filing.

Your creditors will start to ring you again when they are informed from your IP that the IVA has failed. Be prepared for that torrent of ringing. If you are sure of going this route due to poverty caused by an IVA contact National Debtline and CAB just for information, etc. The CAB will also assist you in filling in the bankruptcy forms.

Housing, if you live in council housing or association housing you will not have to move. If rented, the OR (Official Receiver)may or may not contact your landlord. If the OR does you may have to move so please read your tenancy agreement. If you own, you may lose your home. Again, THIS becomes the OR problems once petitioned and sign by the District Judge(DJ). BTW You will see the DJ in a room. Just you and him and your wife no one else. So, don't become anxious thinking about appearing in a courtroom.

Once positive a BR is the route for you and your wife. STOP paying the IVA as you will need these funds to file your BR and possibly move.

My IP that prepared my IVA did the samething as yours. BUT we never returned it for him to file because we sat down with a calculator and did the ACTUAL figures not some fantasy land figures or cost of living values from the 1960's.

It will feel scarey to you at first really acknowledging that a BR is imminent. You tried to pay back your debt but the IVA was unrealistic. I do understand. Do not feel ashamed. This is the best route for you and your wife. You are on the way to a debt free future with your sanity intact.

YOU my brother in debt concentrate on YOU and YOUR wife obtaining some emotional and psychological healing.

Let me know how it goes. Ask all the questions you need to. I will answer those I am able to. Remember, you are not alone. We here all understand.

Take care

[:)]

All I have left is my humour.

[DebtDummy]

Also, zeezee you stated you're on income support. The filing fee for the BR of £120-odd ( again x2) you may be exempt from check at the courthouse. BUT the OR fees must be paid £350-odd ( again x 2). I say 'odd' cause I am not sure of the breakdown at this moment whilst I am typing, sorry.

I am still very upset over how you were treated by your IP;and the fact you never should have been advised to do one under that was so unrealistic. That blasted IP could have saved you and your wife alot of emotional trauma a year ago! The IVA industry needs regulating!

All I have left is my humour.

[freelili]

I agree DD, I had all sorts of answers to my questions last week when I was trying to make general enquiries, I still dont know who to trust.

ZeeZee you will find many of the answers to your questions at myvesta.org.uk. They have a specialised bankrutcy section with videos to watch on the subject. I am sorry for the way you have been treated and wish you the best of luck.

Please can you keep posting and let us know

LILY