Is BR the best option??

oliviarosejackson

Hi everyone,

I was wondering if anyone is able to help me. I am currently 12 months in to an IVA with Blair Endersby. They have recently reviewed my I&E. I do not earn as much as I was doing 12 months ago when the IVA started. I was told to ammend my repayments while the new I&E was sent out to my creditors to see if they would agree to it ( I was paying £311pm, after my review I had £150pm).

I have been sent a letter this morning saying that I have earned more than they had down for the last 12 months, so I now owe them £779 and it needs to be cleared by next June.

I still live at home with my parents and have a 5yr old daughter. What I was wondering would BR be a better option for me??

I have been on the phone to CCCS, but they cannot really give me much advice as I am tied into a contract with Blair Endersby. But they did tell me that over time is not usually taken into consideration, as it is not always going to be there, is that true??

My monthly income after tax is £550
Tax credits £460
Child benifit £75
= £1085

Can anyone advise me on how failing my IVA and going BR would work?? As I am totally clueless and want to know all of my options before I take this big step and I know everyone on here is so helpful.

Thanks for any help you can give.

dalip

Hi and welcome

There have been a few people who have gone from doing an IVA to bc due to either being missold or a change in circumstances. I am not totally sure but in order to go bc the courts ask for a letter from the IVA company saying it has failed. These tend to be hard to get as IVA companies know they will loose their money. With no assets to protect an IVA does not appear to have been the right thing for you. I am sure somone will be along soon who will be able to answer any questions. D

oliviarosejackson

Thanks for the advice dalip.

Do you think it will be difficult to get the IVA people to fail it?? I feel it was the wrong option for me, but i dont know how to get out of this mess i have gotten myself into.

fermi

Your IVA agreement should tell you under what circumstances it will be considered failed. For example, I think many of them specify 3 missed monthly payments.

Have you checked what the consequences of failure are according to the agreement? Some (admittedly not many) IVA companies/agreements retain the funds for the IP to petition for your bankruptcy if the IVA fails.

It would also be advisable to ask your court to confirm what proof of failure they require before they will grant a bankruptcy order. Some require the certificate of non-compliance from the IVA firm, but others here have found that their court/judge is happy with the sworn statement on your bankruptcy forms that the IVA has failed.

See this thread: Certicicates of non compliance and BR.

oliviarosejackson

Thanks fermi.

[Have you checked what the consequences of failure are according to the agreement? Some (admittedly not many) IVA companies/agreements retain the funds for the IP to petition for your bankruptcy if the IVA fails.]

Sorry this may be a dumb question (i am clueless to money stuff), did you mean there they will keep all of the money that has been paid into the IVA.

Also, another question, my parents took out a loan to get me a new car, as my last one was on its last legs and I need my car for work, how that would be affected in BR. As i pay them the money each month to cover the loan.

k2nga

Yeah i have had dealings with Blair Endersby who are great when they are trying to get your business and then awful when you are a customer. I was lucky to find out from National Debtline that i was being miss sold and that an IVA would fail as i could not prove my income and that the best thing for me to do was then go BR ehich they then tried to make me do with them and they asked for £500 on top of the court and OR costs. I told them to stuff it and spent the weekend doing it myself which was in my mind the best thing i have ever done in my life.

So i am maybe the wrong person to ask as in my opinion i would try and go BR asap if you can get the paperwork you need of them but i would ring your local court as some want the certificate from the IVA people and some dont.

fermi

oliviarosejackson wrote: »

did you mean there they will keep all of the money that has been paid into the IVA.

In some IVA agreements it is the duty of the IVA firm to petition for your bankruptcy if the IVA fails. That means that they will keep enough money to one side out of your payments to pay the bankruptcy fees.

Most IVA firms don't seem to bother with this though, and leave you to sort yourself out if the IVA fails. I don't know what Blair Endersby do, but it should be written somewhere in your IVA agreement what happens.

oliviarosejackson wrote: »

Also, another question, my parents took out a loan to get me a new car, as my last one was on its last legs and I need my car for work, how that would be affected in BR. As i pay them the money each month to cover the loan.

Who actually bought the car? Whose name is it registered in?

oliviarosejackson

Thanks everyone for all of the replies, I am so greatful for all of your help.

Thank you K2nga, did you set up an IVA with them then?? They really are terrible. Did Blair Endersby want to charge you for going BR. I really am struggling to know which is the best route to go down. But i dont know if i can cope with all of this for the next 4 yrs. Wondering what letters/money they will be demanding.

k2nga

Im afraid they got my money which was just over £450 for the first payment before i found out they were trying to miss sell to me. So i was lucky to have got better advice before paying the second month. I have not emailed them asking for the money back as even if it goes to the OR i just want then to pay it back.

My personal opinion is go BR and all the stress is gone it really is no more worrying about letters from them and remember they are likely to mess you round for the 4 years you have left so my advice is get out quick but it just my opinion and im not CCCS or National Debtline and ND were great when i called them.

oliviarosejackson

Thanks again K2nga,

they have had nearly £4000 for the year!!! Will they pay you the money back?? Are they obligied to?? Do they had to keep a certain % of the money aside incase you do go BR??

Are you BR now?? I also wonder about the IPA. How is that worked out?? How long will i be paying it for?? What do they take into consideration?? Xmas, birthdays..... etc. Also what worries me is the money i owe to my parents for the car?? I have only had the car 5 months. And i do need it for work.

Sorry for all of the questions. I just want to know the ins and outs of everything before i make a decision, although my mind is made up really.

k2nga

No problems at all and its nice to be able to help. I dont think that you will et any of the money back and even if you did it would just go into you BR estate for the OR to have and sort out.

I am BR now and here is my story in case you wanted to see what is was like for me: http://forums.moneysavingexpert.com/showthread.html?t=1012833

I got to be honest and say i am not sure what triggers an IPA although i think if you have over £100 a month surplus they may want to set you up with an IPA. The best thing you can do is put on here you incoming and outgoing in the form of an SOA and people here will tell you what you can add and take away which may make an IPA less likely.

Unfortunatly the money your parents lent you go into the money you owe and you cannot pay then back before others if you know what i mean you might just have to agree to pay them another way but you cannot add thins in your statement off affairs as you cannot favour one person over someone else when it comes to owing money and being BR.

Anyway as for questions you feel free to ask away.

Hope this helps