stuck and very down

archiesmummy_2

Hi
I have been looking through the forums and seems there are alot of people in the same boat so i apologise if my post is one of 100 the same.
basically in 2006 i started an IVA i pay £714 a month and now earn 1700 per month. I have had a baby 3 months ago and just find that this is too much, to be honest i found it too much when i didnt have the baby, they have de creased my payments from 830 but extended the IVA which is due to finish in Nov 2011. I really am tempted to go bankrupt but am worried re having bayliffs turn up at my address. I live in rented accomodation which is part furnished by me and part by landlord (my stuff is basics like bed, nursery stuff, clothes) (landlord owns sofa, washing machine, TV and such like) any advice on bayliffs turning up? does any of what i have paid to the IVA go towards the BR? how much would i pay to be made bankrupt? i feel so fed up and down about things i just feel like, well if it wasnt for my little boy and OH i would jump of something high right now...any advise plse...thanks x

angie_baby

Didnt want to read and run, but someone who knows about these things will be along soon. Your in the right place here though, there are some really lovely clever people on here.

BIG HUGS

archiesmummy_2

thanks hun......x

MIVAA

Hi archiesmum,

It is possible to approach your IP and ask for a fresh appraisal of you financial circumstance.

If, as you suggest, your ability to afford the IVA payments has fallen, and you are unable to maintain your contribution without leaving yourself short of family essentials, you can ask the IP to call a variation meeting to the IVA.

Usually an Insolvency Practitioner has the ability to reduce your IVA payment by up to 15% without the need to go back to creditors, however, any more than that and a variation meeting needs to be called.

Your new circumstances are described to your creditors, and they are given the opportunity to agree to the new lower payment. If they agree, then the IVA continues on the new footing, but if they decline, the IVA stays as it is, but you'd have to accept the possibility that bankruptcy would really be the only other realistic option left if you really can't keep up the IVA payments any longer.

It makes sense approaching your creditors this way first, rather than just giving up on the IVA, as you would be out of debt quicker through the IVA now that you are more than half way through it. This is opposed to bankruptcy, which would require you pay an Income Payment Agreement for 3 years, which will be imposed on you at any time during your bankruptcy.

Bankruptcy would not take in to account the IVA payments either, it would just deal with the debt situation you have now, rather than looking back historically at payments you've made before through the IVA.

Take heart though, a variation meeting will normally have a good chance of success.

So long as you are seen to be trying to repay what you can afford, and that creditors still receive a better overall return, compared to what they would receive if you were to be declare bankrupt, they should accept it.

I hope this helps,

MIVAA

archiesmummy_2

MIVAA......Thanks for your help, its that time of year with the review of the IVA and it always gets me down, i just hope they dont try and put it up and will bear in mind the 3 year thing with the BR. Thanks again!

Trolley_Dolley

archiesmummy wrote: »

Hi
I have been looking through the forums and seems there are alot of people in the same boat so i apologise if my post is one of 100 the same.
basically in 2006 i started an IVA i pay £714 a month and now earn 1700 per month. I have had a baby 3 months ago and just find that this is too much, to be honest i found it too much when i didnt have the baby, they have de creased my payments from 830 but extended the IVA which is due to finish in Nov 2011. I really am tempted to go bankrupt but am worried re having bayliffs turn up at my address. I live in rented accomodation which is part furnished by me and part by landlord (my stuff is basics like bed, nursery stuff, clothes) (landlord owns sofa, washing machine, TV and such like) any advice on bayliffs turning up? does any of what i have paid to the IVA go towards the BR? how much would i pay to be made bankrupt? i feel so fed up and down about things i just feel like, well if it wasnt for my little boy and OH i would jump of something high right now...any advise plse...thanks x

Please don`t think like that, it will just make you feel down, I know its hard but try and stay positive and hope somebody on here can give you the right advice. Surely if you are struggling they have to review your circumstances now they have changed and assist you. Don`t give up and hope you get it sorted out soon....

Love and hugs xxxx