At the point of IVA but an accident has changed things. Any advice welcome.

nomoneypenny

Hi All,

I am new to this site but have been but have been reading posts of advice for a while.

Please can anyone offer advice?

My husband and I were just in the final stages of IVA (Joint 110K) , meeting was set for 11/08/08. Just over a week ago I was involved in a bad car accident, (not my fault) a young lad overtook 3 cars round a blind bend. Unfortunately, I was the other side of the bend. My car but was excluded from IVA due to hp, then payments to be included 3 yrs down the line when paid off.

My car is a confirmed write off, the insurance will pay off the car but now I am left with no car and cannot get finance. I work 27 miles (1hr on a good day) away from where I live.

On speaking to the IP they have advised the IVA will now be refused as I cannot say when I will return to work. I was hospitalised and I'm going to need alot of physio, but thankfully nothing broken.

I am now looking at BR but obviously worried. The reason for going for IVA was my home, but only bought last year so only 6K equity if that. We have my husbands vehicle worth 4K but he also works 30miles from home in the opposite direction to my work.

How long does BR last is it a 1 year or 3 I'm a bit confused and what is the payment plan situation? Also how long does it take to sort out, as once the creditors find out it has failed the wolves will be back quite quickly and with the stress and pain I'm currently dealing with I don't know just how much more I can cope with.

Thanks for your help.

dalip

First off welcome nom
Second ring one of the numbers in my sig for proper legal advice on your individual situation or your local CAB.

1. You may get to keep your house but i am not an expert so wait for others to comment.

2.BC lasts for 12mths or less depending on how simple your case is.

3. An IPA(based on your surplus income,which is far more generous than an IVA)last for 36 mths from the first payment,not the bc date.

Any more questions ask away.D

Dez-Titute

As Dalip says,

Contact one or all of the following National Debtline - Tel: 0808 808 4000 | The Consumer Credit Counselling Service (CCCS) - Tel: 0800 138 1111 | local Citizens Advice Bureau.
Have you done your Statement of Affairs (income & expenditure) yet, without payments to debts? If you put this up on here then the someone here will be able give further guidance.

nomoneypenny

dalip wrote: »

First off welcome nom
Second ring one of the numbers in my sig for proper legal advice on your individual situation or your local CAB.

1. You may get to keep your house but i am not an expert so wait for others to comment.

2.BC lasts for 12mths or less depending on how simple your case is.

3. An IPA(based on your surplus income,which is far more generous than an IVA)last for 36 mths from the first payment,not the bc date.

Any more questions ask away.D

Thanks very much, is the payment re-assessed and variable or once ordered does it say the same for the length of the 36 months? Also how quick to sort?

blind-as-a-bat_2

If only you go BR and assuming your Beneficial intrest in that equity is 50/50 then you only have 3K, which will hardly cover the cost of sellin it, and as the prices are falling it may not be long before that is zero anyway.

If that is the case, as long as the OR doesnt object to you payng your share of the mortgage then yo should be OK buying your BI back for £1 plus cots (£250ish)

No guarentees obviously, but i doubt the property will be a big issue.

As for replaceing the car, thats a hard one to help with im afraid

blind-as-a-bat_2

nomoneypenny wrote: »

Thanks very much, is the payment re-assessed and variable or once ordered does it say the same for the length of the 36 months? Also how quick to sort?

variable at 50-70%( the more surplus the higher the %) of your surplus income once it exceeds £99.99 a month.

An IPA can be varied up and down or even canceled if your situation changes enough to warrent it

nomoneypenny

blind-as-a-bat wrote: »

If only you go BR and assuming your Beneficial intrest in that equity is 50/50 then you only have 3K, which will hardly cover the cost of sellin it, and as the prices are falling it may not be long before that is zero anyway.

If that is the case, as long as the OR doesnt object to you payng your share of the mortgage then yo should be OK buying your BI back for £1 plus cots (£250ish)

No guarentees obviously, but i doubt the property will be a big issue.

As for replaceing the car, thats a hard one to help with im afraid

Thank you, could you explain the BI and £1 cost (£250) what is this?

blind-as-a-bat_2

Beneficial intrest or BI is your share of any equity in the property, the assumed starting point in most partnerships (married etc) is half unless one party can prove they have contributed more or less.

In simple and short terms if you go BR alone then your OR can only try to take 50% of the available equity unless proof is supplied otherwise.

In cases where equity is deemed zero or negative a BR or reletive can buy the potential equity for a quid plus costs off the OR, which you should do as soon as poss, not that i see a rebound in house prices in the next three years put if there where and your house value went up your OR could come back asking for a share of that if you dont buy your BI back of them at any time in that three years

nomoneypenny

blind-as-a-bat wrote: »

Beneficial intrest or BI is your share of any equity in the property, the assumed starting point in most partnerships (married etc) is half unless one party can prove they have contributed more or less.

In simple and short terms if you go BR alone then your OR can only try to take 50% of the available equity unless proof is supplied otherwise.

In cases where equity is deemed zero or negative a BR or reletive can buy the potential equity for a quid plus costs off the OR, which you should do as soon as poss, not that i see a rebound in house prices in the next three years put if there where and your house value went up your OR could come back asking for a share of that if you dont buy your BI back of them at any time in that three years

I see, thanks for explaining that...I see I have alot to learn and quickly. Much appreciated. :rotfl: