iva vs br

notenoughmoney

not sure if this should be in the iva or br bit, so have put it in both.

we have had a joint iva for 2 years, including a variation due to change in circumstances.
We are facing a further reduction of £400pm in income.
Have no assets (2 cars value £1000 each).
We are having to use food/clothes money to pay car repairs and veterinary bills as allowances are too small.
we have 4 children, 1 at uni, so we are still feeding him. he is looking for work but cannot claim anything while at uni.
Can anyone help us with what is considered 'reasonable living expenses'
We are considering failing the iva and filing for br.

can someone tell me if this is ok,this will be our soa after september
petrol is high as OH has to travel 50 miles round trip to work

Household Information[/b]
Number of adults in household........... 3
Number of children in household......... 3
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 1997
Partners monthly income after tax....... 60
Benefits................................ 185.6
Other income............................ 0
Total monthly income.................... 2242.6
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 512
Management charge (leasehold property).. 0
Council tax............................. 96
Electricity............................. 100
Gas..................................... 86
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 25
Mobile phone............................ 20
TV Licence.............................. 11
Satellite/Cable TV...................... 0
Internet Services....................... 25
Groceries etc. ......................... 650
Clothing................................ 150
Petrol/diesel........................... 325
Road tax................................ 30
Car Insurance........................... 50
Car maintenance (including MOT)......... 80
Car parking............................. 10
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 40
Medical (prescriptions, dentist etc).... 69
Pet insurance/vet bills................. 20
Buildings insurance..................... 0
Contents insurance...................... 9
Life assurance ......................... 33
Other insurance......................... 11
Presents (birthday, christmas etc)...... 30
Haircuts................................ 40
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 50
Total monthly expenses.................. 2472

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 2000

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly.. .APR
loan/ credit card..............80000.....0.........0
Total unsecured debts..........80000.....0.........-

Monthly Budget Summary
Total monthly income.................... 2,242.6
Expenses (including HP & secured debts). 2,472
Available for debt repayments........... -229.4
Monthly UNsecured debt repayments....... 0
Amount short for making debt repayments. -229.4
Personal Balance Sheet Summary
Total assets (things you own)........... 2,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -80,000
Net Assets.............................. -78,000

Feelingfoolish_3

Hiya

Welcome to the forum

My thoughts....

I wont comment on your soa as I will leave that to others on here who are great however my first instinct on seeing you rent is WHY are you doing an IVA. IVAs are best for people who want to protect their assets, e.g. property, as you are renting and your cars are of low value then surely with the level of debt bankruptcy is by far your best option.

One thing though, you say your fuel consumption is high due to your partners travel to and from work yet your partners income is £60?

Also who is your IVA through?

notenoughmoney

sorry got a bit mixed up I am the partner Hubby is main earner and the one who travels.
We were told to go for an iva by cccs it is with grant thornton, we were just desperate to try to manage our debt better and wanted to pay it back, but our income has really dropped, OH will not be able to do overtime (this was about 10-15k a year) as he had a heart attack three months ago and has to take things easier.

Feelingfoolish_3

Hiya

I thought as much (about the income) just wanted to check. To be fair as you wanted to pay your debt back I can understand why an IVA might have been suggested however you are in a deficit budget posn now and going without to service your cars. All credit to you for managing for 2 years however as your income has dropped and you are struggling then why not consider bankruptcy. As long as it wont affect your partners employment and you need to check your tenancy agreement then BR would give you a new start. Why not, you have done your best, tried to repay but maybe its now time to re-assess.

So sorry to hear about your OH heart attack, you can def do without the pressure of the debt.

This is a great forum full of people ready and willing to answer any questions and worries you may have about BR.

notenoughmoney

I don't think it will affect his employment, we rent our house (at a reduced rent) from my parents, I am a bit worried we might lose one of the cars, my daughter is just starting secondary school and I want to drive her as she would have to cross roads (she is very immature)to get to the bus and OH works saturdays and most of my self employed work is at the weekend, but i only earn a small amount, not sure if it would be justified.

Feelingfoolish_3

Hi

Ok so employment should be ok, get him to check. Rent would be okay, tough one about the cars but you could plead your case, in the grand scheme of things to lose your debt and one car may be a small price to pay, could you walk your daughter to the bus if it came to it?

Have a really good think, from your first post you sound under pressure and this could be a whole new stress free start for you.

IMO I think BR would release so much for you, and another thing to think about is that if your income is reducing so much then your IVA may fail and then you are back facing your creditors.....not a pleasant thought x

notenoughmoney

we already have missed this months payment (they were not very understanding) as we had a bill to get the car through the mot for £400 this month and our cat has asthma and has been on tablets for a couple of years but it has got worse and he now needs an inhaler which costs £72 a month, we bought it this month (it works well) to give ourselves time to decide, but we are thinking we will be told to have him put down, which is a shame because we have been told he is otherwise healthy.

thanks for your help, yes I could walk her to the bus, but I wouldn't be able to work when OH is working.

Kids are really suffering at the moment, we have just had our 'holiday' which consisted of nothing at all because of our car/cat, i feel really guilty because it is not their fault.
If we opt for BR will they make our eldest leave uni so he can contribute?

Feelingfoolish_3

Hiya

Cat with asthma? I get that (although cant quite visualise the inhaler!), I had a diabetic cat, she lasted on insulin injections for a few years before it finally got her! We will do anything for them eh!? (and yeah she would sit and wait for her morning jab)

With the car, if you explain that you need it to work when your OH is working then Im sure it could be fine.

Yeah we all feel guilty about our kids and not being able to give them what we should, I have stuff in my head at the mo about my son but I went BR last week after a long thought out decision.

As for your eldest, no of course he wont have to leave Uni, def not!

BR is a fresh start, you are not penalised just because you cant pay your debts due to circumstance as is the norm in this country at the moment. The courts and the OR are on your side at the end of the day, they will only penalise those who are culpable, meaning going out and blowing £100 a week on shoes! (Oh I dream!) and not knowing you couldnt pay it back. The fact that you have tried with an IVA will go in your favour. You need to fail the IVA and then get yourself debt free x

notenoughmoney

thanks for your help, I am pretty sure that is our only choice.

Feelingfoolish_3

Good luck, if this is what you decide then post your SOA again and the great people on here will guide you, feel free to PM me anytime x

notenoughmoney

can anyone help with our soa