My Parents need help urgently - what can I do?!

LoopyLou74_2

Hi,

My parents entered into an IVA 6 months ago after months and months of stress, mainly caused by their creditors and also the IVA people. Three months ago my Dad lost his overtime which equated to nearly double his usual monthly salary being lost. He called the IVA last month when things got tight and they said not to worry and he can pay what he can when he can, he then made a smaller payment than usual. Yesterday he received a threatening telephone call from them stating they would make him bankrupt if he did not pay in full, he said he had no money and they said they did not care!

I have been absolutely disgusted with the way my parents have been treated by all companies involved throughout their crisis. It started with 2 of their Creditors not accepting my parents telling them that they had entered into an IVA and threatening them - You may think I am using the 'threaten' word a lot and surely I'm over reacting - I am not! These people on the end of the phone are apparant human beings and as such surely they must have some sort of intelligence or feelings even! When someone tells you they are struggling, they have no money, they need help, how on earth does this give someone else the right to humiliate them further by getting 'nasty'. My parents have never been submissive people and I have to say they are now shadows of their former selves and as a daughter it is heartbreaking to see. They feel the companies have them over a barrell and as such are taking it all without saying a word! My father and mother now both suffer from severe depression and my dad regularly says he doesnt want to live - he states he will not kill himself but simply hopes his life is taken away from him to the point where on waking each morning he is so upset to be alive he is sick with anxiety!

Where am I supposed to turn to help them - what can I do? Who can I speak to? If they go bankrupt where will they live? I have so many questions and feel I have no where to turn - who do I call?
Any help from anyone would be gratefully received! Please!!

Pobby

Sorry no real advice for you but would say if you were my daughter I would be very proud of you!!!!

Who do they have the iva with? Am I right in thinking that the people that the iva is arranged through are the ones who are threatening bankruptcy?

LoopyLou74_2

Thank you, that's kind. I don't feel I deserve the proud comment though. As much as I care and love them I have difficulty in talking to them about the situation they're in due to having my own worries and stresses. I am a very empathetic person and as such I carry the world on my shoulders and struggle to find the inclination to stress and upset myself further by talking to them or trying to help them when there is nothing I can say or do to help!

Yes, it is the IVA company that are now threatening bankruptcy. The problem they have is that they live in a very nice static home, you cannot get a mortgage against these types of properties and so they took out a loan to buy the majority of it (the rest was paid from their equity from previous house). There are only 2 loan companies that will lend against such houses and they charge 13% interest - this is where pretty much all their money goes! So, if they were to go bankrupt they would lose their home and cars etc.. (I'm guessing). Where do they then live? We live too far away from them so they would not stay at ours. Can you rent if you are bankrupt or do you have to seek help from the council?
They are very proud people and to just add icing to their cake if they go bankrupt it will be announced in their local paper - the whole process just seems so demeaning to me. If I had the money they'd have it in a heartbeat!

Pobby

Well I don`t think that renting after bankruptcy should be a problem. There are a lot of people who come here that do that. The main reason I am posting is because I want to keep this post bumped up as I know there are real experts that come here and in due course of the day they will be able to offer far better advice than I can.

Just one thing, do they live in a mobile home or is it a static caravan? Meanwhile perhaps let us know who the iva is through, there are charities who will do this for nothing. You may well be asked for a soa, that`s the income and out goings your folks have.

All the best with this. I know what the fear is like if you are faced with losing your home. It has been a worry for me in the past.

Rylynn

**bump**

Hope someone comes on soon who can give you some advice.

Mine would be to ring one of the charity debt lines, ie National Debt line and get some advice from them, or you CAB.

Who is the IVA plan with? The likelihood of the IVA people making your parents bankrupt is pretty slim, they have not paid that much in over 6 months, it would have to be written in the original contact your parents signed that the IP would file for BR if the IVA failed. This is very rarely the case.

I have to say my IVA company never threatened me not once, they took what I said each month as I was ill. Sent in sick notes and updated them every time I saw doc or hospital. When they finally realised (18 months later) there was no prospect of my going back to full time work, they simply failed the IVA and I have since gone bankrupt.

I think you need to clarify what your parents signed up to? ie is there a clause that the IVA company WILL make them bankrupt if the payments are not met.

I sympathise with them, as I know before I became ill I asked if the payments could be reduced as the bills had gone up and I was told NO. It was in my contract that the payments would never be reduced, only increased if I earnt more money or won the lottery, or was left money from someone. So I just struggled on paying it each month.

As I say hope someone can talk you though what will happen to the home, they can rent after BR, and if your father needs his car for work and it is not worth mega bucks most ORs make the car exempt. If your mother does not work and has a car she will need to realise she is likely to lose the car.

RL

blind-as-a-bat_2

Rylynn wrote: »

**bump**

Hope someone comes on soon who can give you some advice.

Mine would be to ring one of the charity debt lines, ie National Debt line and get some advice from them, or you CAB.

Who is the IVA plan with? The likelihood of the IVA people making your parents bankrupt is pretty slim, they have not paid that much in over 6 months, it would have to be written in the original contact your parents signed that the IP would file for BR if the IVA failed. This is very rarely the case.

I have to say my IVA company never threatened me not once, they took what I said each month as I was ill. Sent in sick notes and updated them every time I saw doc or hospital. When they finally realised (18 months later) there was no prospect of my going back to full time work, they simply failed the IVA and I have since gone bankrupt.

I think you need to clarify what your parents signed up to? ie is there a clause that the IVA company WILL make them bankrupt if the payments are not met.

I sympathise with them, as I know before I became ill I asked if the payments could be reduced as the bills had gone up and I was told NO. It was in my contract that the payments would never be reduced, only increased if I earnt more money or won the lottery, or was left money from someone. So I just struggled on paying it each month.

As I say hope someone can talk you though what will happen to the home, they can rent after BR, and if your father needs his car for work and it is not worth mega bucks most ORs make the car exempt. If your mother does not work and has a car she will need to realise she is likely to lose the car.

RL

I have to agree here, its doubtfull they have covered there fee in 6 months, so will not waste any more money on making your parents BR.

If its someone like Debt Free Direct, all they are bothered about is keeping the payments going until they have there fee.

The static is a problem, is the loan secured against the static or is it classed as a personal (unsecured) loan?

The answer to that will make a differance, as would how much they have paid so far, we need an idea of the statics value, and how much they have paid to ditirmine the value as an asset in BR

DON79

***another bump***

Richard_S

Hi LoopyLou,

I can appreciate you find it difficult to talk to your parents about the financial crisis they're currently facing, and I can completely understand their feeling of failure and low self esteem.

We were faced with no alternative other than to accept bankruptcy, and we've almost always enjoyed a very good standard of living from running our own businesses, so I really do know what it's like to face the abyss.

I don't know how old your parents are, but we're uncomfortably close to the big 50, and we still haven't really got our lives back to were we'd ideally like to be, but we are getting closer, and it hasn't diminished our resolve to keep on trying.

I'm not sure how the O.R would view the static home and the loans secured on it, but I would assume that if the payments on those loans are in keeping with suitable alternative rented accomodation, then they'd be allowed to keep on paying them. If that's not the case, then your parents shouldn't have too much difficulty in renting a property.

My advice would be to contact one of the Debt Charities; their contact details are in my signature, and then review their options. I can absolutely guarantee that if I could spend an hour chatting to your parents, they'd feel far more comfortable about their options, and they'd be able to deal with the parasites that are curently making their lives so difficult.

It does seems as though bankruptcy would enable them to take control of their lives again, and as much as I accept that it's a huge, and unpleasant prospect, there probably isn't a better way forward.

My sympathies are with you and your parents, and I sincerely hope you can find the resolve to talk to them about their options, and that they're receptive enough to listen.

Best regards

Richard

LoopyLou74_2

Thank you all so much for replying.

I have just spoken to my parents and suggested they look on here for some further advice (although I didn't mention this post!). I asked my father how he feels about going bankrupt - he says he wouldn't have control over where he lives, I stated he could rent but he said the prices would be no different to what he pays now and that's a struggle. They have a 60k loan against their home and pay almost a grand a month on it plus bills, insurances, petrol, car upkeep, ground rent etc.. I don't know all the ins and outs obviously. They have 8 years left on the loan as that is when my dad will be 65.
He says he would like to wait to see what the IVA company do (Blair something) but I suggested that rather than waiting it may be an idea to look into banruptcy now especially with the market as it is. If they have to sell their house perhaps now is the best time as it will take a lot longer or does this make the situation worse? I just want them to be happy again and they can't be while they have this hanging over their heads.

Richard_S thank you for your response. It is so nice to hear from people who have been there and understand. My dad re-mortgaged back in the 80s when he set up a business with a partner. The recession took its toll on the business and my dad at this time and the partner said he would buy my dad out. Then the partner went bankrupt! So this is where the problems began. My parents are in their mid 50s and I would hope that at this time in their lives they could be settled and enjoying themselves instead of going through this.

I am sorry you were faced with similar prospects and understand what a difficult decision it must have been for you. I hope you get your lives back to where you'd like to be soon.

I think it is very sad that we are on the brink of yet another recession that will cause so many lives to be turned upside down.

This forum has been a great help, both through this post and the details within this bankrupty thread. My mother is off to the CAB tomorrow and will also check on this website for info. Hopefully it will show them a light at the end of the tunnel.

Kindest regards
Louise

deedee_3

Loopy tell them to stay away from them at all costs. They will not have your parents best interests at heart. They are a commercial company and are in it for the money and will sell your parents an IVA whether they are suitable for one or not and your parents could waste a lot of money ion nothing.

If they get in touch with the CAB then they will advise and can point them in the direction of a good IVA supplier if it is suitable.

CCCS can do the same and have their own in house IVA company.

National Debtline will be able to advise and point them in the direction of a good IVA supplier.

Of the 3 I would start with Nat. Debtline.

Main recommended sources of help:

• Consumer Credit Counselling Service - Website: CCCS Telephone: 0800 138 1111
• National Debtline - Website: National Debtline Telephone: 0808 808 4000
• Citizens Advice Bureau - Website: Citizens Advice or visit your local CAB centre (find nearest)

Others:

• Business Debtline - Website: Business Debtline Telephone: 0800 197 6026
• Christians Against Poverty
• PayPlan

An IVA is only suitable for 3% of people and I seriously doubt your parents are suitable.

Read Martins article on IVA's (WILL FIND A LINK)

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

If your parents are computer savvy, please get them to come on here and chat with us. There is a wealth of experiance on here.

EDIT. Sorry brain freeze they are already in the IVA . My advice still stands though, get them to give Nat. Debtline a ring in the morning and get FREE, IMPARTIAL adivise on theier situation. Don't talk to the IVA company untill they have.