IVA practitioner making us bankrupt

help2008

Hi
This is my first time posting and posting really because I am scared witless.

My husband and I entered into an IVA in May 2005.
Since then I have had 2 children and am now 11 weeks pregnant with our 3rd child. 6 weeks ago I went back to work after maternity leave and have been made redundant with no redunduncy package.
I am entitled to maternity pay from the g'ment but in March/April time.

I called my IVA practitioner at the end of last week to explain new circumstances etc and they asked me to do my income and expenditure as per normal.

We've ALWAYS been on the breadline but we knew we'd struggle through.

HOWEVER they've come back today and said that with the cost of living going up, the forecasts for house prices going down etc etc we've been told we have no choice but to go bankrupt and they are filing the petition next week.

We now that we would have had to pay £22k to get out of the IVA which we don't have.

We have approx £7k equity in our home and we own our car which is worth roughly £2k.

I have several questions:
How safe is our home....?
Are they going to make us move out in 12 months when i have a newborn?
Will they force us to sell the car?
How will we manage with no bank accounts?
My father in law is named on our mortgage - what happens?

HOW are we going to manage?!

RAS

other will be along but

You will be able to get bank accounts.
Going the way things are, there is unlikely to be much or any Beneficial Interest in the house, so FIL may be able to buy this for a nominal fee and then return it too you later, providing you can afford the mortgage on your income.

You will probably find it easier to manage than you have been. BK allowances are more generous than those for IVAs.

Rylynn

Can I ask do you know how much you have paid into this IVA already? As mine failed due to ill health, and I paid in just over £5k they said I had to make myself bankrupt which I have done. If they make you BR you will not have to pay the BR fees, or that is what I understand.

The equity in your home, are you sure on it, the climate out there is not good, it gets worse daily?

Whose name is the car in? and does your husband work, and if so need the car for work?

I am looking at the amount you say you have to have to get out of the IVA, is that the amount of debt left? ie the bottom line or have they tried to offer you a get out clause, which company is the IVA with?

As for being on the breadline, tell me and others about it, IVAs are totally tough, no room for movement of things going up they just want their MONEY every month, and sod you and whether you can live reasonable.

On that note I and others will tell you with BR you have more leaway, you should not be on the breadline for a start you are allowed to live, which I found impossible in the IVA but kept paying it and going without and my poor son going without. While my poor 74 year old mother propped us up by carrying on working an 8 hour day to make sure the rent was paid.

On the house I cannot advise you but I know people here will come on and give you some advice.

Have you taken any impartial advice via one of the charity debt lines, right now I would suggest National Debt line and your local CAB.

Have you been sent a failure certificate for the IVA yet?

Sorry so many questions but trying to fathom things out so that we may be able to offer you some advice.

Please don't worry though you are most certainly not alone and are among people here who care.

RL

help2008

Rylynn wrote: »

Can I ask do you know how much you have paid into this IVA already? As mine failed due to ill health, and I paid in just over £5k they said I had to make myself bankrupt which I have done. If they make you BR you will not have to pay the BR fees, or that is what I understand.
We have paid approx £4000 and yes the IVA company are filing us for bankruptcy due to failure of IVA from what I believe

The equity in your home, are you sure on it, the climate out there is not good, it gets worse daily? We are purely going on houses on our road at the moment and the approx value is £135k, our mortgage outstanding is £122k with a £6 redemption clause

Whose name is the car in? and does your husband work, and if so need the car for work? car is in my name but yes my husband does use it to travel to and from work

I am looking at the amount you say you have to have to get out of the IVA, is that the amount of debt left? ie the bottom line or have they tried to offer you a get out clause, which company is the IVA with? We owed initially £45k when we took the IVA out - that was the full amount. They gave us a figure last year of £22k to get out there and then - they haven't given us any figure now - have said going straight for bankruptcy as it's the best tthing for us. IVA company is W3 Debt SOlutions

As for being on the breadline, tell me and others about it, IVAs are totally tough, no room for movement of things going up they just want their MONEY every month, and sod you and whether you can live reasonable.

On that note I and others will tell you with BR you have more leaway, you should not be on the breadline for a start you are allowed to live, which I found impossible in the IVA but kept paying it and going without and my poor son going without. While my poor 74 year old mother propped us up by carrying on working an 8 hour day to make sure the rent was paid.

On the house I cannot advise you but I know people here will come on and give you some advice.

Have you taken any impartial advice via one of the charity debt lines, right now I would suggest National Debt line and your local CAB. We called CCCS earlier and they have said they'll petition for the sale of our house.... if that happens in 12 months my children will be just 3 (aug), 18 months and 3 months!

Have you been sent a failure certificate for the IVA yet? not yet - this has only happened today by phone as I called them asking for a reduction in payment until my maternity allowance kicked in in March.

Sorry so many questions but trying to fathom things out so that we may be able to offer you some advice.

Please don't worry though you are most certainly not alone and are among people here who care.

RL

Thank you for your help and thanks to anyone else that replies

Rylynn

Okay so you are still in around the same amount of debt as you were. AS I most certainly am, do not now think you only owe £22 k.. will look this company up as I dont know of them.

Help are you one hundred per cent sure THEY are petitioning for your BR as I find that very very hard to believe to be honest with you. You have not paid in enough, it costs an IVA company OVER £5k to make you bankrupt, and that came from a very good source when I enquired.

Are you both going BR? I ask due to the car being in your name but him using it for work.

RL

blind-as-a-bat_2

Rylynn wrote: »

Okay so you are still in around the same amount of debt as you were. AS I most certainly am, do not now think you only owe £22 k.. will look this company up as I dont know of them.

Help are you one hundred per cent sure THEY are petitioning for your BR as I find that very very hard to believe to be honest with you. You have not paid in enough, it costs an IVA company OVER £5k to make you bankrupt, and that came from a very good source when I enquired.

Are you both going BR? I ask due to the car being in your name but him using it for work.

RL

Im sorry Rylynn, the costs to petition someone for BR is £595,or there abouts, the rest is legal fees so £1000 to £1500 maybe, but i cant see why it would be £5000


op, As far as the property goes, you stand a good chance to be in zero equity in the eyes of the OR, so keeping the house, while not a dead cert, maybe possible, certainly enough doubt to question the comment 'We called CCCS earlier and they have said they'll petition for the sale of our house'

I cant say its wrong, but its far from a certanty, as they have implied

Rylynn

BAAB I was told by PAYPLAN your fav people £5K to make me bankrupt.. lying swines.. took my £5009.56 and RAN.. why do you think I hate IVAs so much.. £1300 to my creditors I could have paid them more myself over the span of time..

BAAB I do not think the cost to a company like PP is the same almost as I paid to do it myself .. however I dont think it would have cost them £5k either.. and WHO makes the MONEY out of us morons who think this is the way to go.. the IVA companies as my statement shows.. not my creditors who I was trying to pay back..

blind-as-a-bat_2

Rylynn wrote: »

BAAB I was told by PAYPLAN your fav people £5K to make me bankrupt.. lying swines.. took my £5009.56 and RAN.. why do you think I hate IVAs so much.. £1300 to my creditors I could have paid them more myself over the span of time..

BAAB I do not think the cost to a company like PP is the same almost as I paid to do it myself .. however I dont think it would have cost them £5k either.. and WHO makes the MONEY out of us morons who think this is the way to go.. the IVA companies as my statement shows.. not my creditors who I was trying to pay back..

I think your seeing why i get so annoyed on here sometimes, you have hit the nail on the head, someone is always out to make money out of misery.

Even more annoying when one of those was a reputable help line

Looks like it may be being repeated too:rolleyes:

Rylynn

What PP you think are a help line.. BAAB please think again they are nice on the phone can they find all my files can they hell..WHY did they hold on to me for 18 months cos they thought I would be back in full time work paying thier fees.. well sorry to say my doctor has other ideas, my body has the same ideas. If it were not for my son I would not even have gotten out the bed and gone back last November I was still too ill, but I owe my son a LIFE I gave it to him, the day I gave birth to him and it was NOT to lay in bed and not try to get back to working, but hell it almost floored me last November, 2 hours per day every other day.. god only 6 hours a week. From the wonder woman to the under woman that was me..

Money out of misery.. they were so clever NO we dont charge up front fees.. but hell they took almost £4k of £5k paid in 16 months then said NO we cannot make you bankrupt, which is why I am asking this lady.. are you sure they are DOING so.. her figures are very close to my own, I told my mother today PP and the others are sharks making money out of pain, and they are.

Problem is BAAB not many like me are willing to come forward and start the WAR..

Deep_In_Debt

Sorry, I'm not a huge fan of Payplan. They tried to force me into an IVA even when I knew it wasn't suitable for me and a DMP was better for me - thankfully I found CCCS and CAB in time and saved my bacon!

I'm willing to rage war on the sharks...all of them.

blind-as-a-bat_2

Rylynn wrote: »

What PP you think are a help line.. BAAB please think again they are nice on the phone can they find all my files can they hell..WHY did they hold on to me for 18 months cos they thought I would be back in full time work paying thier fees.. well sorry to say my doctor has other ideas, my body has the same ideas. If it were not for my son I would not even have gotten out the bed and gone back last November I was still too ill, but I owe my son a LIFE I gave it to him, the day I gave birth to him and it was NOT to lay in bed and not try to get back to working, but hell it almost floored me last November, 2 hours per day every other day.. god only 6 hours a week. From the wonder woman to the under woman that was me..

Money out of misery.. they were so clever NO we dont charge up front fees.. but hell they took almost £4k of £5k paid in 16 months then said NO we cannot make you bankrupt, which is why I am asking this lady.. are you sure they are DOING so.. her figures are very close to my own, I told my mother today PP and the others are sharks making money out of pain, and they are.

Problem is BAAB not many like me are willing to come forward and start the WAR..

I think you misunderstood me, about two years ago Payplan where highly recomended, and had a good reputation, but then the opened a second company, that was not a charity, doing IVA,s, they are seperate, but a profit making company.

But concerns where voiced at the time as to whether the helpline would remain impartial, or advise IVA,s through the sister company for profit, we where assured that would not happen, but you and others are proveing it did:rolleyes:

Hence my concerns history seems to be repeating itself with another advice organisation