Our IVA has failed :(

Annie_Fanny

Have a look at this great post for details of posting your Statement of Affairs (SOA):
http://forums.moneysavingexpert.com/showthread.html?t=107280

Good luck!

Broken_hearted

Hugs it might seem like forever now but its not. Each day you get through is a day less of debt. We all have setbacks from time to time, my DMP is now 1 year longer than when I started, but I have learnt that we need to live and I will owe £4,000 less by the end of this year than I did last year.

Eager_Elephant

Bankruptcy does not necessarily mean losing your home.
Can you tell me how much your house is worth and the outstanding mortgage or secured loans and also whether any work is needed to make it saleable?

I am very concerned that your IP has not made you bankrupt as most of the time this is part of the agreement. Have you got the IVA pwk to hand to check. I would hate for you to be getting your life back on track and then this happens out of the blue.

A DMP will allow you greater scope for all expenses than an IVA would. Although they may not give you a set amount per month for gifts they are more likely to add the acceptable figures to your SOA (figures that most members of the credit industry agree to adhere to) which would give you leeway to reduce your expenditure and have some for xmas.etc.

Quite a lot of the time bankruptcy is deemed more appropriate than a DMP that lasts over 6 - 7 years unless you work in a job where you are not allowed to go bankrupt or where you have a lot of equity in your property.
The reason for this is because bankruptcy will only be on your file for 6 years but the actual bankruptcy order should for most people only last 1 year and any Income Payment Arrangement made would only last for 3 years.

Thanks

EE

seven-day-weekend

I don't think you necessarily lose your house if there is not a lot of equity in it.

easypeasy_2

Thanks guys. When the children are busy, I'll get some figures together.

Rgc_3

easypeasy wrote:

I feel really down at the moment. Our IVA has failed for the third and final time. We are now going ahead with a DMP with CCCS (who have been fantastic). We now have 8 years of scrimping and the prospect is not one to look forward to. I know we made the mistakes and now have to pay for it, but I can't get my head around it all. We have two small children and in the DMP there is nothing about Christmas presents, Birthday's or a small Holiday. We haven't been away for 6 years now, not even for a weekend. Our DMP payment is quite high (but then again we owe alot). Sorry to sound so doom and gloom but this is how I feel. Can anyone help me to see the postive's in please.

Hi

can i just ask their reasoning for refusing the iva??

they normally look for a min of 30p in the pound which would be a payback of around 14 k over the aloted time.(did your figures for negotiating the IVA come in around the 14k figure??)

Or.. they feel you are earning enough but just require budgeting???(and this site is definately the place to be to have your finances disected and see how to improve your circumstances:T

Being below the 14 k figure would steer them towards bankruptcy and being able to afford monthly payments well over the 14k figure would guide them to go for repayment plans

Its not all dark though...just view the payment plan(which i think needs re negotiated as they are supposed to allow a realistic amount for living expences to avoid the need for further credit)then when the plan is in place get ideas from here for increasing your income(lots of great ideas on this site:j ).....its amazing how quickly the debt balance drops with overpayments)

Best wishes:beer:

ps...i know how dark it looks now but at least your on the road to taking control again so well done:T

flis21

Our IVA has failed as well, we couldn't keep up the payments when I had to change my job due to ill health. Unfortunately they do not have to make you bankrupt if it fails, it is just an option they have. It is not actually in your creditors interest to make you bankrupt, as they get a lot less money then!!

We are currently in the process of saving up the fees to declare ourselves bankrupt, but as there is two of us this will take quite a while, as we have to save up about £950!

I just wanted to say that I feel for you, it is horrible having all this hanging over your heads. I suppose we are lucky as we don't own our own home or a car and haven't got children yet, so haven't really got much to lose by going bankrupt.

madduck

Re the DMP and allowing money for Christmas, birthday presents, etc. When you were doing your budget with CCCS (similar to SOA you were going to post here) was nothing put in the budget for them? I know that when I did my original DMP budget and also since then on my updates, they have always been included.
CCCS are normally really good at working with you to get a manageable DMP. I felt really bad at the time given the amount of debt that I was in to allow any money for presents, social life, hairdressers,etc. The counsellor explained that the DMP was about getting a budget that it was possible to live on. As it was going to be in place for a long time it had to be possible to live on it.

moozie_2

I am sorry to hear about the IVA plan failing. I can only imagine how disappointed you must feel

I am surprised to hear that there is no allocation in your DMO for presents etc. My understanding of DMPs has always been that they are drafted with realistic expectations, as madduck describes.

madduck wrote:

The counsellor explained that the DMP was about getting a budget that it was possible to live on. As it was going to be in place for a long time it had to be possible to live on it.

Perhaps you can share a bit more on that. Why is it not including things like presents?

easypeasy_2

Rgc wrote:

Hi

can i just ask their reasoning for refusing the iva??

they normally look for a min of 30p in the pound which would be a payback of around 14 k over the aloted time.(did your figures for negotiating the IVA come in around the 14k figure??)

Or.. they feel you are earning enough but just require budgeting???(and this site is definately the place to be to have your finances disected and see how to improve your circumstances:T

Being below the 14 k figure would steer them towards bankruptcy and being able to afford monthly payments well over the 14k figure would guide them to go for repayment plans

Its not all dark though...just view the payment plan(which i think needs re negotiated as they are supposed to allow a realistic amount for living expences to avoid the need for further credit)then when the plan is in place get ideas from here for increasing your income(lots of great ideas on this site:j ).....its amazing how quickly the debt balance drops with overpayments)

Best wishes:beer:

ps...i know how dark it looks now but at least your on the road to taking control again so well done:T

It was a joint IVA and my partner only got 66% of votes needed (most of the debt is in his name). I didn't get any votes but that was due to HSBC not accepting the 31p in the pound offered. They apparentley require a minimum of 40p in the pound.