What happens after a failed IVA

cutemum

I have posted on here a few times. In the summer I was separated from my husband and unable to pay my debts. After lots & lots of research it was either down to BR or IVA. I was advised that as I had no money at the end of the month and my property was in negative equity i should go for BR. This would have meant that everything would be over within 12 months and I could start my life again- without seeking credit of course!!

I was really against BR as I felt spent the money & I should pay it back- never mind with my job- I did not want my name in the paper- small town!!! As a result of this and the fact she was worried sick about me my mother said she would look about taking out a loan to pay the £20000 needed for the 3rd party funds for the IVA that was accepted at the end of the summer. She would have done anything to help me & I will always be grateful.

Since then my husband & I have got back together. He had started a DMP when we were separated. My mother has other worries at the minute and I have decided tht I along with my husband will not ask her to take a loan. What would happen if my job, her job or anything else happened before the loan was paid.

I am going to contact my IP on Monday. Will my original IVA fail?? what happens next? Can i put forward a new proposal as my circumstances have changed?? I am so confused but know this is the best decision for everyone.

I was given the advice before that I should continue with the iVA regardless but I feel that it is requiring my mum to take credit for me when it is not necessary.

Sorry about the long post! I need help!!!!!!!!!

Charco_2

Did you offer a F&F iva based on third party funds?

It is a material change to your circumstances, you should discuss it with tour IP. Perhaps recalculating your I&E to see what you could reasonably afford to offer your creditors is the first step... Doesn't mean your IVA should necessarily fail - however perhaps failing and trying again would be best, or failing and BR - don't worry about the paper so much, it's not as bad or as public as all that... It will probably go in A paper but it's not like local rag takes out a two page spread on you!

I'd need more info to give a fuller answer tho!

Speak to IP and come back on here... Don't commit to anything but tell us what they're suggesting!

cutemum

Thnks Charco. I have read a lot of your advice in other posts and glad you responded to my post. I am going to phone IP on Monday. I am trying not to panic as I had come to believe an IVA was a lifeline.
Thanks again
Will post again on Monday!!

ps I owed £38000 and they were going to settle for 3rd party funds of £19500. As this was a one off payment to be paid within 6 months of the creditors meeting can I still negotiate a monthly contribution on the same IVA or does this proposal have to fail first?

debtinfo

cutemum wrote: »

I was really against BR as I felt spent the money & I should pay it back- never mind with my job- I did not want my name in the paper- small town!!!

It is very rare for bankruptcies to be put in the local paper anymore

Charco_2

The proposal doesn't have to fail, it can be varied but if you could get a lump sum somehow that would definitely be your best option

cutemum

I contacted the IP today who has agreed that a variation possibly may be put forward to my creditors. I was advised that again it would need a majority vote to be passed. I have to submit my income and expenditure now with ammended amounts to include my husband in both the income and expenses. Although the IVA will be mine it has to include the details from our household.

Unfortunately Charco I have no way of getting a lump sum. I only hope that this will be accepted as the creditors wll actually get higher than the 41p in the pound than was originally proposed. I hope this will stand to me. I really will be relieved if this is accepted as I will have the responsibility myself rather than getting other people involved.

Charco_2

Very normal to include the household I&E hubby n all when calculating the new contributions... If you would like a few pointers then post the I&E up here to see if you could maybe squeeze an extra couple of shekels out for yourself - all within the guideline of course!

Even only £15 difference a month would be meaningless to your creditors but could mean the world to you!

cutemum

Thanks Charco- We are going to sit down and look at things at the weekend- I would be really appreciative for any tips. Every extra penny counts. We have had to be careful for the past few years- although my outgoings were steep everything was paid and up to date until my separation when I offered token payments. In some ways I might actually have a more realistic budget.

Post soon.
Thanks

BLT_2

cutemum wrote: »

I have posted on here a few times. In the summer I was separated from my husband and unable to pay my debts. After lots & lots of research it was either down to BR or IVA. I was advised that as I had no money at the end of the month and my property was in negative equity i should go for BR. This would have meant that everything would be over within 12 months and I could start my life again- without seeking credit of course!!

I was really against BR as I felt spent the money & I should pay it back- never mind with my job- I did not want my name in the paper- small town!!! As a result of this and the fact she was worried sick about me my mother said she would look about taking out a loan to pay the £20000 needed for the 3rd party funds for the IVA that was accepted at the end of the summer. She would have done anything to help me & I will always be grateful.

Since then my husband & I have got back together. He had started a DMP when we were separated. My mother has other worries at the minute and I have decided tht I along with my husband will not ask her to take a loan. What would happen if my job, her job or anything else happened before the loan was paid.

I am going to contact my IP on Monday. Will my original IVA fail?? what happens next? Can i put forward a new proposal as my circumstances have changed?? I am so confused but know this is the best decision for everyone.

I was given the advice before that I should continue with the iVA regardless but I feel that it is requiring my mum to take credit for me when it is not necessary.

Sorry about the long post! I need help!!!!!!!!!

Just wanted to say good luck to you and your hubby and to say I hope it goes well. After all the whining 'its not my fault it's the greedy banks who gave me money' posts I read on these boards it's nice to see someone taking personal responsibility.

Even if it fails at least you have done your best. Good luck