Would An IVA be betterthan BR???

AnnesWitterings

Ok its the OHs turn to sort out his debt and boy will I need to pick your brains so here goes.

Brief outline

Hes employed in a good job earning £30k gross £23k net

His debts all unsecured come to £45K:eek: :eek: :eek: :eek: mainly due to ex wife.

Hes talking to CCCS re an IVA but Im thinking BR with an IPO might be better??

He has no home to protect, he rents from council, and his car is on HP and would be considered in negative equity , car worth £6500 HP £11K:mad:

His only worry with BR is that they may touch his pension but its a mandatory company pension to which both he and his employer contribute...

Hes preparedto lose the car, and pay an IPO or whatever its called for the 36 months.

With the IVA he gets to keep his car and etc but living allowances are strict.. and its going to cost about £5k to administer and goes on for 60 months:eek: and roughly £400 per month.

He supported me through my BR so now its my turn to return the favour.

One of his main creditors is MBNA who I notice from reading the posts on here do not like or recognize IVA`s often could you give us some general input and I will post a more detailed I & E tommorrow and SOA as well.

Many thanks

Anne & M

Scarlett.1974

Hi Anne

From what you've said there, it would seem unlikely to me that an IVA would be suitable for him, with him not really having any assets to protect. You said he's spoken to CCCS - what did they advise?

Have a look at Martin's guide to IVAs if you haven't already:

http://www.moneysavingexpert.com/loans/pdf-iva-guide.pdf

AnnesWitterings

Hi scarlett

they advised a IVA due to him having a large pension but Im sure that his pension cant be touched. He needs to find out from work about the implications of going BR and his pension type. Hes embarrassed about folk and his employers finding out.

My income was going to be included as well as I was going to move in with him but chose to go BR yesterday and will stay in my own place till discharge, which hes not too happy with, plus im not working now and dont getJSA just IS and would lose this if I moved in with him, then he would have to be totally responsible for myself which would help the I & E allowances more i suppose.

Being BR wouldnt affect his job status and Im sure 36 months with an IPO is better than 60 months on an IVA that wouldnt be accepted by the largest creditor anyway.

His credit staus is rubbish anyway I dont think he has anything to lose going BR he thinks diff

A

dalip

Not certain anne but my OR told me they don't usually touch pensions. I suspect it would depend on type ect. You need to look into it.


Oh and snap. I went bc,now i am dealing with my OH debts.D

fudge59

Hi,

Re the pension, below is what the guidance notes when filling out the bankruptcy form says - does that help?

A trustee cannot usually claim a pension as an asset if your bankruptcy petition was presented on or after 29 May 2000, as long as the Inland Revenue has approved the pension scheme.

If you are receiving a pension or become entitled to do so before you are discharged, the pension is included as income for the purposes of an income payments order or arrangement (see Section 6).

Scarlett.1974

His pension should be safe. I would advise he call CCCS again and speak to a different advisor. Have a look here:

http://www.insolvency.gov.uk/freedomofinformation/technical/casehelpmanual/P/Pensions/Part1.htm

Particularly:

The primary effect of the Welfare Reform and Pensions Act 1999 (WRPA99) is that approved pension arrangements do not form part of the bankrupt’s estate thus the Official Receiver has no claim over the majority of pensions or any accruing benefits

AnnesWitterings

Thanks Scarlett

I will have a good read through the links youve put on ...many thanks...the IVA has gotten to proposal stage but the budget is very strict and if Ive read right on these forums MBNA are a bit of a devil in dealing with IVA wise.

I am looking after my nephew today but will post his SOA etc tonight, his phones ringing all the time and he answers and I can see now its getting to him. I kind of got absorbed in my own BR journey and took my finger of the pulse in respect to him so need to haul in his debt situation and get it sorted so we both can move on and have a life in a few years:rolleyes: :rolleyes:

Fuge59 thank you also for that quote it may well come in useful to use, thanks for taking time to read my post all of you.

Dalip do you have trouble with getting your OH to talk about his debts...mines slowly opening up..with me on his case he will soon be as open as I am now:rotfl: :rotfl:

And Good Morning to all who read this have
a nice Bank Hol weekend:j :j .

Anne

dalip

No anne. I have always delt with the finances so i know exactly what he owes ect,perhaps i should let him. I am trying to get him to take charge of his debts but as per usual,it's me that has to do it. To be honest he wants to go bc but i wont let him. He has not got that much debt really and if we were working we could get them down. We shall see what transpires. If his creditors get nasty the we may well have no option but for the time being they are being reasonable in acceptng a token payment.D

purplepinhead

Hi, I also have a good pension at work and my OR said he has no interest in it, but like other posts I would seek more advice.

skylight

I would concur with the above. What you have told us so far, with no assets, BR would be far more suitable than an IVA. His pension will not be touched if it is government approved and I do not think that any company pension scheme would not be government approved. My one was not touched at all and I was not expecting it to be. On the safe side, perhaps a call to his HR department or his pension company to confirm.

He is likely to loose the car. Not because of the OR, but most HP contracts have BR clauses in them and they may want to take it away (or they may not!!) but any shortfall if they do take it away should be included in BR - make sure its on his forms!

At least with an IPA, the allowances are more generous PLUS they only take a percentage of that - an IVA will be harsh and they take all the surplus.


And triple snap!! Also dealing with OH debts. Although I am tempted to throw them back at him and tell him to bog off at the moment.

dalip

Yes me too skylight. It does tend to get you down after a bit;). I was led to believe men where the stronger sex:rotfl: :rotfl: :rotfl: ,I must be a male in a female body:eek: