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Have I failed my IVA? What do i do next?

:confused: I started my IVA in July 2008 with Debt free direct, before going through with the IVA I told them that my ex partner would reduce his working hours to attend university (he's becoming a qualified surveyor) in the September and therefore his child maintenance would reduce, he also wrote a letter explaining this. In September as he went to university his child maintenace payments reduced from £300 to £160. After notifying DFD of this (they appeared shocked that this had happened!!) I asked them for a reduction in my IVA payments (which are currently set at £300pcm) sent them all the paper work confirming this. It now January and I have made three reduced payments to DFD of £200 which I worked out I could afford. DFD have only contacted me once by phone to tell me they were sending me a letter out that I was now in arrears and that they were aware of the problem, but I have heard nothing since. As this is now my third reduce payment have I now failed my IVA? Would I be better petitioning for my own bankruptcy as I am struggling with my IVA?
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Comments

  • fiveyearplan
    fiveyearplan Posts: 10,143 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Hi SS - if you give a bit of background on what your debts are (cc's/loans etc), do you own/rent your home, how many people in household etc. then we can give more accurate advice.

    :j :j


  • SOSTUPID
    SOSTUPID Posts: 16 Forumite
    There is just me and my three year old son who live in my house which I rent from a local housing association. My total debt is £36,579.64 I had two bank loans £25,034.10 with barclays and HFC £4,100.00. I also had two credit cards Barclaycard £1,001.75 and capital one £537.03 I also owed two catalogues, £2,600 and payments on a sofa which I owed £1,579.64. At the time I didn't want to go bankrupt as I though I would lose my job (I am a civil servant) but after speaking to personnel I don't think I actually would. The only asset I have is a car worth only £1100. at the time of going through the iva my income was, child maintenace £300pcm, income from employment £923pcm, child benefit £81pcm, working tax credits £660pcm and working tax credits £86pcm a total of £2,050. My out goings monthly were listed as,
    water rates £33
    electricity £40
    gas £40
    car insurance £90
    car tax £15
    fuel £100
    vehicle maintenace £30
    food and household goods £210
    personal hygiene £20
    clothing £30 (for me and a growing child?)
    childcare £594
    t.v licence £12
    contingency £50
    mobile phone £25
    pets £10
    telecommunication package £60
    council tax £80 (single person discount)
    rent £311
    total £1,750 surplus for IVA £300.

    Now my income has changed to child maintenace £160, income from employment £975, Child benefit £80, working tax/ child tax £710. Total £1925
  • debt_doctor
    debt_doctor Posts: 4,595 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Hi,

    If your employment is safe then BR looks a far better option for you.
    From what you say I think you IVA has failed. Apparently a few courts insist you need a 'failed IVA 'certificate before petitioning for BR. As far as I can see in law all you need to show is that you have failed to comply with the terms of the IVA.

    Might be a good idea to stop paying IVA at all and use money for BR fees.

    DD
    Debt Doctor, Debt caseworker, Citizens' Advice Bureau .
    Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***
  • debt_doctor
    debt_doctor Posts: 4,595 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Also, looking at your inc/exp we would make sensibl ajustments to the outgoings where you should not contribute anything from your income towards your BR. ( other than the fee)

    DD
    Debt Doctor, Debt caseworker, Citizens' Advice Bureau .
    Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***
  • fiveyearplan
    fiveyearplan Posts: 10,143 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Expenses are more generous for BR than IVA so you can raise your housekeeping (put in personal hygiene with that). Child benefit needs to be listed but isn't counted for IPA purposes (not sure about CTC).

    car insurance seems high - you will have to put a case through for keeping your car.
    What does your telecommunications package consist of? THis will probably have to come out of your surplus.

    It looks like you will have to pay an IPA however this will be 36 payments and that will be an end to your debt.

    I'm sure others will be along to comment on your SOA.

    :j :j


  • debt_doctor
    debt_doctor Posts: 4,595 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    There is just me and my three year old son who live in my house which I rent from a local housing association. My total debt is £36,579.64 I had two bank loans £25,034.10 with barclays and HFC £4,100.00. I also had two credit cards Barclaycard £1,001.75 and capital one £537.03 I also owed two catalogues, £2,600 and payments on a sofa which I owed £1,579.64. At the time I didn't want to go bankrupt as I though I would lose my job (I am a civil servant) but after speaking to personnel I don't think I actually would. The only asset I have is a car worth only £1100. at the time of going through the iva my income was, child maintenace £300pcm, income from employment £923pcm, child benefit £81pcm, working tax credits £660pcm and working tax credits £86pcm a total of £2,050. My out goings monthly were listed as,
    water rates £33
    electricity £40 i would up this a bit £ 50 ?
    gas £40 this too £ 50 ?
    car insurance £90 rather high but depends on no claims dis, etc, will have to justify
    car tax £15
    fuel £100
    vehicle maintenace £30
    food and household goods £210 £ 320
    personal hygiene £20
    clothing £30 (for me and a growing child?) £ 60
    childcare £594
    t.v licence £12
    contingency £50 make this a holiday fund
    mobile phone £25
    pets £10
    telecommunication package £60 only home phone will be allowed - £ 20 ?
    council tax £80 (single person discount)
    rent £311

    hair cuts £13
    contents insurance ??
    total £1,750 surplus for IVA £300.

    Now my income has changed to child maintenace £160, income from employment £975, Child benefit £80, working tax/ child tax £710. Total £1925

    I make that £ 1850 outgoings, without home insurance against an income of £ 1925.00, £80 of which does not count as income, so no IPA providing you can keep the car.

    DD
    Debt Doctor, Debt caseworker, Citizens' Advice Bureau .
    Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***
  • fiveyearplan
    fiveyearplan Posts: 10,143 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    That looks good DD. I was just thinking the same - SS do you need your car for work? You need to present a good case for keeping the car as it does cost you quite a bit to run.

    :j :j


  • SOSTUPID
    SOSTUPID Posts: 16 Forumite
    I do need my car for work. The car insurance of £90 pcm was high because I only passed my test in February 2008, so this February 2009 I will have one year of no claims. I have had a quote of £588 for this years insurance so it will reduce my payments per month. To be honest if they sold my car now they would probably only get about £500 for it, I bought the car for £1100 but I have had a few scrapes in it, (went into the fence post scratched the side of the car!!!).
  • SOSTUPID
    SOSTUPID Posts: 16 Forumite
    My telecommunications package consists of phone, internet and basic sky television, when I was going through the IVA process DFD said
  • SOSTUPID
    SOSTUPID Posts: 16 Forumite
    My telecommunications package consists of phone, internet and basic sky television, when I was going through the IVA process DFD said I would be ok with that on the account of me having a young child?? Would that not be the case if I went bankrupt?
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