Considering Bankruptcy

Whitetornado

Hi, I have been reading threads on this forum for a while now and everyone seems so helpful. I wondered if anyone could help.
My husband is currently in an IVA, they take all of my wages into consideration as well. We find it such a struggle to make the payment each month. I have to keep juggling other bills, such as rent, gas , elec, and then catch them up leaving little for groceries.
He is thinking of just going bankrupt, We live in a council house, have no assets . He has a car which is worth about £1000. I would not be going bankrupt but I have a car worth about £400.
Would we have to phone IP about this or just stop payments? Any advice would be appreciated, Thankyou.

peachyprice

Hi there, welcome to the forum.

For your IVA to fail I believe you need to miss a minimum of 3 payments, so if you have definitley decided this is the way your OH wants to go, stop paying now.

You will also need to contact your county court to see if they need a certificate of failure from your IVA comnpany, not all courts require this, so you need to check your particular one.

HTH

Whitetornado

Hi, thanks for quick reply. We have already missed 3 payments with the IP permission for various reasons during the last 2 1/2 years the IVA has been running but they increased our payments by £20 per month to catch up.
Do you think we should tell IP what we want to do or just stop paying and wait for certificate.
Sorry for the questions but we just feel like we cannot cope any more never having any money and feel bankruptcy is the way to go for a fresh start, as paying this IVA is causing us to fall behind with our utilities etc.
Thanks

debtinfo

Hi, remember that in a br you may have to pay an amount for 3 years, although this amount is usually less than the IVA. Probably the best thing to do is to speak to the IP, stating that if it cant be reduced permenantly then you are going to have to go bankrupt. This gives your creditors the option and then looks like you have done all possible to repay as much of your debt as possible

Whitetornado

Hi, Thanks Debtinfo.
We will phone IP then. The problem is though when we have filled our I&E form in according to them we have £157 surplus but our payments are £275 per month . In this calculation they have included tax credits which we do not get because of an overpayment and child benefit, but when we do the SOA like others have on this forum , we have no surplus at all so do not think my OH would get an IPA. I hope I make sense.
Thanks

debtinfo

The main diffrence is that the IPA is only 50-70% of your surplus whereas the IVA is 100%. Having said that the OR tends to be stricter on expenditure items like presents, emergency fund, car finance etc. On balance you tend to pay less in an IPA. It would be interesting to have a thread showing what users have submitted as their SOA and what the outcome was to see which are being consistantly accepted or not