HELP! IVA rejected-can I apply for BK?

wanttoseethelight

Hi, we applied for an IVA and it was rejected by one of the creditors- everyone else agreed. The company dealing with it say they will reapply for IVA but from posting on here, some seem the think we'd have been better off to apply for bankruptcy.
If I do choose the BK path, do I ask the IVA people to apply for me or do I go to the courts and fill in the papers myself?

We went to CAB last October 2008 and after getting our creditors to accept reduced payments, were then passed on to a company recommeneded by the CAB to advise us on IVA or bankruptcy. We opted for IVA as we were told we could be allowed some money from the sale of our house to help us to relocate and get a rental property. We will have some money from the house sale, but not ebough to pay back creditors. Because nothing has gone ahead with the IVA, we HAVE to use some money to pay back family and relocate.
The other day, I felt much better from taliking to people on here but today I went into meltdown. I've been off work stressed out and ended up crying for hours. Ive stomach pains and know its all stress.
I just don't know what to do now as this IVA company have draggedthis on since May and its been since Oct 2008 snce we went to the CAB. Im in a mess........please .....even share your story or advise if you can. Thank you

skintbutsolvent

Someone will havebetter advice, but if you are considering going bk then be careful about paying back family, can be seen as preferrential treatment.

brighter_side_of_life

Hi there :hello:

Please do not despair, I too, like you, was turned down for an IVA last May (2009) due to just one creditor refusing! You need 75% of the creditors to agree I got 72% or something ridiculous.

I went through payplan and when they called to tell me the 'bad news' I broke down and cried. Lost at the thought of what to do next.

I rang payplan back (once I had time to take it all in) and although they couldnt tell me to go bankrupty (they are there to offer information to enable you to make an informed decision) it was clear from what they were saying that bankruptcy should be considered.

It was daunting..... I was scared too. Probably like you are feeling right now. A debt management plan was out of the question (I owed £35,000 and it would have taken me years to pay it off (if ever). Also, my single income would barely cover what the creditors were demanding. A debt management plan can also be reassessed by the creditors and they can still chase and hound you if they so desire.

So following advice from debtline and payplan I sought bankruptcy. Oh and I also rang Christians against poverty (CAP), another charitable organisation who gave me some really good advice. CAP can only help you directly if you fall within the catchment area of one of their offices, I unfortunately didnt, but they said I could call them at anytime to talk and they would help with information. They were wonderful. You can find them on the web http://www.capuk.org/home/index.php

Please, you must seek advice if you are considering BR. Its important you know what the pros and cons are.

Looking back, it was a good thing that my IVA was turned down (although I didnt feel that at the time). With and IVA your credit rating is shot as is BR (mind you its probably not that great right now anyway!) But with BR in 1 year you are debt free (sometimes sooner) and in 6 years your can clear your credit file (although it will stay in the London Gazette forever - so does an IVA I believe). Further, with an IVA it can take 5 years to pay it off and another 5 years to clear your credit file - a total of 10 years as opposed to BR 6 or 7 yrs) Oh, and during the 5 years you are paying off an IVA, there is the worry of losing your job or that some change of circumstance may affect you ability to pay - you will probably find yourself going through the BR process as an alternative (unless you get some sort of lotto win or windfall!).

The thing is - DONT WORRY - there is a way out. Its hard but once you take control you will start to feel better.

All is not lost just because your IVA has not been successful.

Keep posting on this website as there are loads of really good and nice people who will offer you support and advice along the way. YOU ARE NOT ALONE.

Hope this helps but pleeeease give us a shout if you need anymore info....

Hugs. x

wanttoseethelight

Oh Thank you.....Ive cried reading your reply as I know Im not alone. I'm normally so together but am suffering badly from stress that I'm out of control.
I wil keep posting on here as its invaluable. Like you say, I need to start to take control and be informed.
Thank you again....Im sorry this is a short reply but I am so drained today...I wil come back with new vigour (I hope!) soon.
Thank you again xxx:T

brighter_side_of_life

Hi again X

You are definately, definately not alone. Try to have a good nights sleep, clear you mind and think nice thoughts if you can......

Things always seem better in the morning. Easier said than done I know! But seriously, you cant make big decisions when you are so tired and drained.

Rest, and take your time. These people (charity debt advice lines) are open tomorrow - give them a call. Write everything down and put things into perspective.

BR doesnt mean you will lose everything! There is always a why out. It might seem daunting but there are solutions. You just need a bit of expert advice and tlc (we can provide tlc! and some advice from personal experience!!)

Take one step at a time....... dont think to far ahead. First and foremost have a nice rest tonight knowing that tomorrow you will be taking the first step to a much brighter future - debt free.

It might seem impossible as you will be worrying about all sorts of things, but really, mostly you will be worrying unnecessarily.... a lot of the websites giving advice on BR give the worst senario - too much reading of them will put you in an early grave! :eek:

Ring the experts tomorrow. They are friendly and will help you.

Stay strong - we are here for you! :smileyhea hugs

kanie1972

Dont worry to much about it, I was like you almost went into an IVA when BR was the best option for us, we rent our house, do not drive have relativly low incomes and our jobs were not affected by BR yet were still advised to go for an IVA.

Anyway just in the nick of time we got out of the IVA before the creditors meeting and opted for BR. The court date was very nerving but we were only in the judges office for 5 minutes then the relief was enormous.

Next we had the OR interview and again I was so worried but he was very friendly and helpful and undestanding.

We went BR on the 29th April this year and yesterday found out we had been discharged on the 9th November. So try not to worry, I am one of the worst worriers there is and if you just take one step at a time and get help from this site and the one i used and found very helpful called bankruptcyhelp then everything should work out just fine.

Hope your feeling a bit better.

mick

tigerfeet2006

Hi and welcome to the board.

Your first port of call should be to contact one of the Debt Charities; see links below. Their services are free; they have no vested interest to serve; their advisors are professionally trained and the advice they give will be objective and in your best interests only.National Debtline operate an advice on first phonecall system CCCS operate a system of telephone appointments that are designed to be flexible and don’t require you to attend an office based interview. At the CAB you will need to make an appointment with a specialist Financial Advisor; other advisors may not have the specialist knowledge you’ll need.

http://www.cccs.co.uk/

http://www.nationaldebtline.co.uk/

http://www.citizensadvice.org.uk/index.htm

If you’re advised that bankruptcy is the most suitable solution to your financial problems then we can offer the best support and anecdotal advice that you’ll find anywhere on the Web.

Read as much on here as you can, starting with the Bankruptcy Help sticky and that will answer a lot of your questions. But don't be afraid to ask about anything you don't under stand.

http://forums.moneysavingexpert.com/...html?t=1056083

Just remember, as desperate as you may feel at the moment, we have all experienced what you are going through at the moment and with the right support and advice things will improve. It’s not an easy route to take but it is a route that will put you back in control of your life rather than just reacting to events.

wanttoseethelight

Thanks, have been to CAB last October 2008 and they put us with an IVA specialist. Its was turned down on Oct 20th but I think IVA is not the way we should go. Our circumstances have changed, we've sold our home on advice of IVA company and now have to rent. Ive lost my home.
We'll have to..... sorry.....Im messed up sos much. will get back later. Thanks for reply

tigerfeet2006

Please keep posting WTSTL. It will help you.

Give someone like National Debtline a ring on Monday and go through your options with them, they are busy so be prepared to sit for a while and keep trying. They are open 9AM TO 9PM. Speaking to someone in real life may help you gt your thoughts in order.

Send a letter to your local CAB complaining about th IVA company.