Advice needed

1_step_closer

Hi all

I am a fairly regular poster and regular lurker reading just about everything I can get my hands on.To try and cut a very long story short after years of debt and struggling I applied for an IVA with payplan. It was rejected as the creditors wanted payments I could not afford.

Here is the situation as it stands:

ME
Unsecured debts of approx £26K
Car on HP
Mr STEP
Debts far greater than mine but has been keeping up the mortgage payments.

The plan was for me to do an IVA and then payplan would help hubby with a DMP.

Unfortunately the iva was rejected and it took several phone calls to Payplan for them to acknowledge that noone was even working on my case as "the wrong button had been pressed" to forward my file from the iva dept to the dmp debt. Of course in the meantime we are both getting letters and nasty phone calls.

I seriously think we will have to go bankrupt and my questions are these:

None of our debts are joint so would we have to go BR seperatly?
Would that mean 2 lots of court fees?
Hubby is self employed and very little money is coming in apart from my wages.
I dont understand the nil tax - is that used for an IPA to the OR?
Our house is in neg equity by £30K so I should imagine the beneficial interest being bought by a friend/family member would not be a problem.

In the meantime what do I say to our creditors???????

I expect there will be many more questions but i wanted to post these ones as I am sick with worry.

Thank you

1 step

DON79

1_step_closer wrote: »

I seriously think we will have to go bankrupt and my questions are these:

None of our debts are joint so would we have to go BR seperatly? - there is no joint BR process, it is always separately done even for couples with joint debts.
Would that mean 2 lots of court fees? - yes am afraid so.
Hubby is self employed and very little money is coming in apart from my wages.
I dont understand the nil tax - is that used for an IPA to the OR? - when you go BR, any tax you would normally pay with wages is stopped and you get your wages without tax. You then need to keep back the amount of tax to pay to a company called Moon Beaver who collects the tax on behalf of the OR.
Our house is in neg equity by £30K so I should imagine the beneficial interest being bought by a friend/family member would not be a problem. - no this would be fine - should cost £1 plus court fees (varies between £211/£250)

In the meantime what do I say to our creditors??????? - do not tell them that you are considering going BR, this may make some step up any action they are taking with a view to getting a debt secured over your home and therefore it could not be included in your BR - just say you are in the process of taking advice and will be in contact shortly - you could offer a token payment in the meantime to try and hold off action but this won't work forever unfortunately.

I expect there will be many more questions but i wanted to post these ones as I am sick with worry. - if you think of anymore, post them up.

Thank you

1 step

Hope this helps a little!

Donna

1_step_closer

Yes it does thank you - who are Moonbeaver? and would an IPA be in addition to the tax collected by them?

Also - I had a look at the forms and thought "on my god" then read them properly. The inheritance question has stumped me - I am an only child and will inherite when my parents eventually die. I dont know their worth (and dont intend asking either) so what would I put for that?

many thanks

1 step

JCS1

Inheritance - it's only if the person dies whilst you are an undischarged bankrupt that the OR would be interested (or if you are waiting for inheritance to come through at date of BR). So at the moment you would put nil on your forms.

The forms aren't that easy - but break them down and do one section at a time, and if in doubt post your questions on here.

1_step_closer

Thank you, this all helps.

One final question (for now) when I was applying for an IVA I changed my bank account to one not connected to any creditors. What will happen with that? (It is Lloyds). will I have to change again? It was a bit of a nightmare last time!

Thank you

DON79

hi 1 step

an IPA would be in addition to the tax collected if you have a surplus income of £99 or more.

You would be better to change your account away from LLoyds to either the Cooperative Bank or Barclays although not if they are one of your creditors. Lloyds will likely close your account anyway once you are declared BR am afraid.

Donna