Need Some Advice Please

kdean

Hi everybody, I am new to this board and to the idea of bankruptcy. Myself and my husband have been in an IVA for 2 years. Unfortunately we did not come across this site until afterwards. If we had we probably never would have done an IVA in the first place.

Our circumstances have changed since starting the IVA and have come to the realisation that bankruptcy is probably our only option. I tried to speak to CCCS about it but because we are already in an IVA they cannot advise us. I must admit, I do not feel all that comfortable with our IP because I think they wrongly advised us in the first place. However I did speak to them earlier today and found out that our original company has "taken a business decision to no longer deal with IVA's"! The new person I spoke to was not very helpful, although she did say she could go to our creditors with a reduced amount once I filled in a new income and expenditure form. To be honest I think this is a waste of time as we are already paying back the lowest divident of 25.89p.

Our payments are due to go up by £125 next month because we were allowed this for our car payments which end this month (or would have if we were up to date). We cannot afford what we are currently paying and I have worked out that we have only a surplus income of about £50 pm (which explains why I have had to "juggle" so many payments).

I think our IP is just trying to delay matters and I just want to get it dealt with now. I had a few questions though: -

1. Our car is only worth about £1,500 and the loan is in arrears by £1,200. Will they suggest sale of the car and purchase of a cheaper one?
2. If we get to keep the car will the arrears go into the bankruptcy?
3. Do we have to pay two fees as we both need to go bankrupt or can it be joint?
4. Should I stop paying the IVA in the meantime because I cannot really afford it and things like council tax and car loan are being put off to make the payments?

Thanks for your help in advance and sorry it is a bit long-winded, not sure what background you need.

DotNetter

I've only been looking into IVA and Bankruptcy for the last 2 days but here's what I've found which relates to your questions.

kdean wrote: »

Hi everybody, I am new to this board and to the idea of bankruptcy. Myself and my husband have been in an IVA for 2 years. Unfortunately we did not come across this site until afterwards. If we had we probably never would have done an IVA in the first place.

Our circumstances have changed since starting the IVA and have come to the realisation that bankruptcy is probably our only option. I tried to speak to CCCS about it but because we are already in an IVA they cannot advise us. I must admit, I do not feel all that comfortable with our IP because I think they wrongly advised us in the first place. However I did speak to them earlier today and found out that our original company has "taken a business decision to no longer deal with IVA's"! The new person I spoke to was not very helpful, although she did say she could go to our creditors with a reduced amount once I filled in a new income and expenditure form. To be honest I think this is a waste of time as we are already paying back the lowest divident of 25.89p.

Our payments are due to go up by £125 next month because we were allowed this for our car payments which end this month (or would have if we were up to date). We cannot afford what we are currently paying and I have worked out that we have only a surplus income of about £50 pm (which explains why I have had to "juggle" so many payments).

I think our IP is just trying to delay matters and I just want to get it dealt with now. I had a few questions though: -

1. Our car is only worth about £1,500 and the loan is in arrears by £1,200. Will they suggest sale of the car and purchase of a cheaper one?
If the loan for the car is secured on the car then it will not be part of the bankruptcy but you will be at risk of loosing the car if you don't keep up your payments - but this is outside of a bankruptcy since it is a secured loan
2. If we get to keep the car will the arrears go into the bankruptcy?
see answer to question 1
3. Do we have to pay two fees as we both need to go bankrupt or can it be joint?
no such thing as a joint bankruptcy so yes, two lots of fees will be needed
4. Should I stop paying the IVA in the meantime because I cannot really afford it and things like council tax and car loan are being put off to make the payments?
You really need to get some advice. Try pushing your current IP for help or if the CCCS won't help try other charities. If you feel that going BR is the only real option then you may be best stopping IVA payment to save towards the BR fees - just an opinion though as I am not qualified in these matters!

Thanks for your help in advance and sorry it is a bit long-winded, not sure what background you need.

Cheers,


Wayne

iquit

I suggest you try to get some advice from other debt charities namely CAB & national debt helpline. Good luck.

kdean

Thanks guys I will see if any body else can help. I tried PayPlan too but they say the same as CCCS, IVA is legally binding so they can't advise.

peachyprice

You need to look at your car paperwork to see if it's HP or personal finance, then we'll be able to help you with that.

If you do decide BR is the way forward then yes, you must stop paying the IVA. Some courts need a certificate so say it has failed and to get this you must have missed at leased 3 payments.

HTH