i have an iva and have been struggling with payments im getting bank charges every month and things are bad?

Question

ive done this question before but want to go more in depth with it to get the right answer, i got told if i default on my payments sit back and wait ill be made bankrupt, ive been struggling with payments and things are going wrong all the time, like my vaccum blew up so had to find money to replace it, kids school uniforms has cost more than i expected, my benefits got reduced, ive spoken to the iva people and got nothing from them, what would happen if i do default and make myself bankrupt, would bailiffs come and take my belongings, i rent my house and have a car that i use daily to get me to work and back please can someone help

may i just add the merc that every one is picking up on is my fathers, the car we own is cheap and economical

Answer 1

It depends on your proposal as to whether they have told your supervisor to retain monies to make you bankrupt in the event of default. The only thing with this is that it can take a while for them to do it. It will be quicker to get the forms online and do it yourself but i would inform the company that this is how you want to proceed they will tell you if they will make you bankrupt or not. The bailiffs only come if you owe on tax or parking fines etc not for loans , and this would take a while. Your car will be safe if it is deemed necessary for work but only to the value of 1500 to 3000 depending on the OR. If more you will have to sell it and get a cheaper one with the money allowed. As said you can get the forms online and fill them in it will cost £485 but 150 less if on benefits. Unfortunately too many are accepting iva's with to tight an expenditure and this is causing about 30% to fail. You will not lose your home as long as you keep paying the rent.

All the best

Answer 2

I would suggest you post your details on the dealing With Debt board at The Motley Fool. The link is given below.

You are curently in an IVA. Does this have a bankruptcy clause? If so, then the Insplvency Practitioner will be obliged to file for your bankruptcy if you default. He will have some leeway, maybe to allow a very short payment holiday, but will have to have a very good reason.

Basically, if you wish to avoid bankruptcy then you must either trim your expenditure (or earn more) so that you can afford the agreed payments or alternatively agree a new schedule with the creditors.

Changing the terms of the IVA will not be easy and will depend upon a number of things. How long has the IVA been in force? What has changed recently to create this problem?

You said in an earlier question that you did not include all the necessary expenditure on your statement of affairs when proposing the IVA. How big is the shortfall? The problem you now face is that your creditors are going to be reluctant to believe you as they will take the view that you have lied to them. Please don't take that comment personally but I just wanted to emphasise that this needs to be presented very carefully to the creditors.

Discuss your revised Statement of Affairs with your IP. Any change will really need to be able to be followed for the rest of the IVA term. Explain in detail what has changed to bring about the current situation. By the way, if I were a creditor I would consider replacing your vacuum to be a discretionary spend and not an essential.

You asked anout what happens in a bankruptcy. It is unlikely that any possessions would be taken unless you have any "luxury" items with a material resale value. A large plasma TV might be taken but normal household effects should be safe.

Your car should be OK if you need it for work unless it is worth more than, say, £2,000. How much did you pay for your car (you bought it recently, didn't you?). I hope you got a good deal because a V8 engined car is not going to make it any easier to convince the creditors that they should let you off more of the money you owe them.

Answer 3

if you dont pay your bills then you wont be made bankrupt. you have to file for bankruptcy yourself. If i were you i would cancel all direct debits and pay bills over the phone with a debit card or payment slip. That way you cant get charged by the bank if you pay bills a day or two late. Are you claiming Tax Credits if not apply for them. Go and talk to Citizens Advice bureau! Also do you have a council place or private rent??? get a council place go see the council tell them you cant afford your place and your going to get chucked out and they should give you somewhere.

Baliffs will only come when you get dept collection letters and final notices and even then baliffs are a very last resort!!

good luck

Answer 4

I think I read that your kids are paying tuition for private school and needed new uniforms. I don't see much help -- you did not mention that you have a second part time job....