IVA Default and bankruptcy

Scrambledbrain

Hi.
I've been paying into an IVA for two years but at this annual review they've doubled the amount they expect me to pay. It leaves me £80 a month for me and my daughter!

The reason for this is that this time they have decided to include my OH's income. He and I have always had separate finances. No shared accounts, no shared debt, no joint purchases. We were 40ish when we met and didn't want to get mixed up in each other's money woes! At the start of the IVA I asked again and again as to whether he would need to be involved and was told many times - no.

In order for me to keep paying my IVA, he has kindly been paying all our rent and utility bills. He earns way more than me but also has his own debt and child support to look after. I still have to find money for as much of the food as I can, my own bills and looking after my daughter's needs. This is temporary arrangement while I get back on my feet and then we'll go back to splitting the bills.

It feels like my only option is to default and declare myself bankrupt. Can anyone tell me if my OH's assets would be at risk. I own nothing of any value at all. He has two cars (recently inherited one), a nice camera and a new TV. Other than that we live a simple life. No holidays or luxuries.

All my debts are now "owned" by a company that I'm assuming - as they're at the same address - is a branch of the company who have arranged my IVA for me.

Many thanks for any advice you can give.

chelseabun_3

Hi Scrambled and welcome!

Your first port of call should be one of the debt charities listed in the stickies at the top of this board, eg CAB or National Debtline. They will be able to advise your best direction, and what the implications would be. It sound to me like the IVA co are breaking some rules, but I may be wrong about that, and I'm no expert! Give one of the charities a call asap for advice.

Keep reading this board and post any questions you may have - there are folks on here who have experience of IVA co's and their little tricks!

Hope all goes well! CBx;)

Rylynn

Hi Scrambled.

I have had my IVA fail this year having paid in for 16 months, due to ill health.

The IVA was taken out in 2005 and it was put on hold for 18 months while I was off ill. Which I am told is unusual, they normally dont let you default more than 3 months payments before the fail it. For me it gave me less stress when I did not need it, so I am not complaining. However it makes it hard to now remember everything.

Some advice, make sure you have kept all the creditors details, amounts etc, or hopefully have the original copies of the IVA. When you say the company who now own the debts is at the same address are you sure it is the same company? as I would have thought this was not legal, but like CB not sure on that but you may like to ask one of the debt lines as CB has suggested.

If your OH owns the cars and TV and you did not pay anything towards them I do not think the OR can touch them, they are NOT your assets. But again check that out.

What the OR will want is that your OH contributes to the household, ie pays towards rent, food and it needs to be a sensible amount. It will obviously not be a 50/50 as he has his own bills and debts and child support.

I would urge you to phone one of the debt lines asap, that way if they advise BR you can stop paying and save the money needed to file for BR, which is £500 for one person.

If like me you were held in on a very tight rein with the IVA you may find BR offers you a little more money to live on. Maybe put up your SOA with the IVA (Income and Expenditure) and we can tell you if BR would be a bit kinder to you.

I am sorry to hear they think they can suddenly put it up by double and take money from a person who did not incur the debts.

Keep posting and if I can I will help as coming out of an IVA is a bit different to just going BR, there are questions you will want to ask that some having never been in an IVA may not know the replies to, and hopefully I may.

Good luck whatever you decide, but dont spend sleepless nights worrying pick up the phone and get some help.
Rylynn