IVA failed - now going bankrupt - any advice?

WorriedD

My husband and I have been in an IVA with CCCS for the past year. We've just done our 1st review and because hubby has gone on short time at work asked for our creditors to accept a modification of £100 per month less.

Everyone accepted except Northern Rock so the IVA has failed and we have no option but to go bankrupt.

We want to include our house in the bankruptcy as we have a massive mortgage, have only been paying the interest on it while in the IVA and are in negative equity.

We've been advised to stop paying the mortgage, move into rented asap and then make ourselves bankrupt. The forms have arrived this morning from Court - nightmare(!!!).

One good thing is that apparently bankruptcies are not advertised in the local paper any more so that's a relief.

Does anyone have any advice about what will happen next?

Thanks.

debtinfo

hi worriedD, it is difficult to answer without a specific question, is there anything youe particularly worried about, is it the process you want to know about or a particular asset or debt. put your questions up and i would be happy to answer them

WorriedD

Hi

Thanks for this:

What will happen at the meeting with the Official Receiver - is it possible for bankruptcy to be declined?

A CCCS advisor has redone our income and expenditure report and has increased some of the expenditure allowed within the IVA. Is there information anywhere about what and how much you can put as expenditure?

If there is surplus money every month, I understand that this has to be paid to the OR for three years - is it always for three years? Could we plead for less because we have paid into the IVA for a year and it has failed because of NR rejecting the modification?

Any advice on how to respond to mortgage company about missed mortgage payment this month - have to do it to save up for BR fees, bond for rental and first month rent. Can't tell them we are going BR until after we've moved out.

Thanks again.

JCS1

WorriedD wrote: »

Hi

Thanks for this:

What will happen at the meeting with the Official Receiver - is it possible for bankruptcy to be declined? It is the Judge who will declare BR, very, very rare to be declined, so don't worry about that

A CCCS advisor has redone our income and expenditure report and has increased some of the expenditure allowed within the IVA. Is there information anywhere about what and how much you can put as expenditure? Allowances in BR are more generous than in an IVA or DMP. post your income and outgoings on here to get advice

If there is surplus money every month, I understand that this has to be paid to the OR for three years - is it always for three years? It's a percantage of the surplus, rather than the whole surplus. Could we plead for less because we have paid into the IVA for a year and it has failed because of NR rejecting the modification? No, any IPA will still be for 36 months.

Any advice on how to respond to mortgage company about missed mortgage payment this month - have to do it to save up for BR fees, bond for rental and first month rent. Can't tell them we are going BR until after we've moved out.

Thanks again.

Hope that helps a bit.

WorriedD

Thank you.

tigerfeet2006

WorriedD wrote: »

Hi

Thanks for this:

What will happen at the meeting with the Official Receiver - is it possible for bankruptcy to be declined? If you have taken advice from CCCS and they have suggested BR then it is very rare in deed for a judge to refuse. They only tend to refuse if you haven't taken advice or if you are not insolvent. The OR will look at how you got to this point.

A CCCS advisor has redone our income and expenditure report and has increased some of the expenditure allowed within the IVA. Is there information anywhere about what and how much you can put as expenditure? Pop up your IVA SoA on here and someone will show you how an OR may look at it. We use this template
http://www.makesenseofcards.co.uk/soacalc.html

If there is surplus money every month, I understand that this has to be paid to the OR for three years - is it always for three years? Could we plead for less because we have paid into the IVA for a year and it has failed because of NR rejecting the modification? You will only get an IPA if you have a surplus of over £99 a month after nescesary living expenses have been taken into account and it will only be percentage of the surplus. This can be altered up, down or suspended during the 36 moths of the IPA if your circumstances change..

Any advice on how to respond to mortgage company about missed mortgage payment this month - have to do it to save up for BR fees, bond for rental and first month rent. Can't tell them we are going BR until after we've moved out. If they ring say that you are talking to CCCS about your situation and someone will be in touch shortly or if you have caller disply just ignore thir calls. Ignore any letters they send. If you get worried then post here and someone will be able to help.

Thanks again.

Have a read of the Bankruptcy Help sticky, especially the first post.

fiveyearplan

Hi and welcome worried! I don't have anything to add to the excellent advice already given but wanted to welcome you to the board!