Our IVA has failed :(

easypeasy_2

Here is some more information that may help; bear in mind we have two children aged 3 and 6

CCCS's Expenditure Summary

Mortage £897
2nd Mortgage £219
Water £45
Council Tax £116
Electric £30
Heating Oil £55
Buildings and Contents Insurance £29 (I have tried to reduce this before, but our property had subsidence years and years ago and so we have remained with the current insurers, no-one else wanted to know)
Telephone inc mobile/internet £60 (This is a real sticking point. My partner works abroad alot of the time, he is a european truck driver, he needs his mobile to phone home and phone in work, it is normally much higher than this and I don't know how we will cope with this allowance. He is going to look into changing his vodafone passport package)
TV Licence £11
Sky TV £20
Life Insurance & Mortgage Protection Insurance £126
Car Service £25
Tax £16
Insurance £25
Fuel & Parking £87
Food, Toiletries, Cleaning £420
School Meals £18
Clothing and Footwear £50
Hairdressing £15
Sports, Hobbies, Entertainment £25
Emergencies £25
Work Expenses for partner £108 (he has to pay for food and general expenses whilst away)
Total Expenses £2452
Total Income £2894
Surplus £472

We have a mortgage and 2nd mortage which combined total £137,500 and our unsecured loans and debts amount to £47,282. At present our property is probably worth £175,000.

Our property is a lovely place and in good condition, all double glazed, radiators etc. The kitchen does need updating and so does the bathroom and toilet.

Writing all this down here is horrendous and I feel really stupid that we have got ourselves into such an absolute mess. Neither of us have ever been particularly good with money and tbh we really don't have much to show for all this debt. My partner was out of work at the beginning of this year for 4 months which really escalated our problems very quickly.

james32_uk

Remember there is some good news. On an IVA any change in your circumstance (payrise, bonuses etc) would have been suck into your fund without reducing the amount owed. In this case you could even find you pay off all your debts in a shorter time that the IVA would have lasted.

Rgc_3

easypeasy wrote:

Here is some more information that may help; bear in mind we have two children aged 3 and 6

CCCS's Expenditure Summary

Mortage £897
2nd Mortgage £219
Water £45
Council Tax £116
Electric £30
Heating Oil £55
Buildings and Contents Insurance £29 (I have tried to reduce this before, but our property had subsidence years and years ago and so we have remained with the current insurers, no-one else wanted to know)
Telephone inc mobile/internet £60 (This is a real sticking point. My partner works abroad alot of the time, he is a european truck driver, he needs his mobile to phone home and phone in work, it is normally much higher than this and I don't know how we will cope with this allowance. He is going to look into changing his vodafone passport package)
TV Licence £11
Sky TV £20
Life Insurance & Mortgage Protection Insurance £126
Car Service £25
Tax £16
Insurance £25
Fuel & Parking £87
Food, Toiletries, Cleaning £420
School Meals £18
Clothing and Footwear £50
Hairdressing £15
Sports, Hobbies, Entertainment £25
Emergencies £25
Work Expenses for partner £108 (he has to pay for food and general expenses whilst away)
Total Expenses £2452
Total Income £2894
Surplus £472

We have a mortgage and 2nd mortage which combined total £137,500 and our unsecured loans and debts amount to £47,282. At present our property is probably worth £175,000.

Our property is a lovely place and in good condition, all double glazed, radiators etc. The kitchen does need updating and so does the bathroom and toilet.

Writing all this down here is horrendous and I feel really stupid that we have got ourselves into such an absolute mess. Neither of us have ever been particularly good with money and tbh we really don't have much to show for all this debt. My partner was out of work at the beginning of this year for 4 months which really escalated our problems very quickly.

Hi
i think you offered around 245.00 per month??leaving a surplus of around 227.00 per month for any extras???but thats incidential now and you need to begin to look forward and plan accordingly.

bankruptcy???????id tread very very carefully with that idea and seek pro advice as you have a fair amount of equity tied up in the house(not advice either than just saying make sure you are advised properly if you go down that road.

Im assuming the plan is swallowing up the majority of surplus??i think its still a case of going back to cccs and asking them to review the plan to make it more realistic taking into account its going to take around ten years to repay even with interest frozen.

secondly ..why not post the individual debts here(maybe someone will see a way to reduce it a bit

there will be an answer in all this to make it bearable it just needs more thinking time

good luck

easypeasy_2

No, the surplus I have written of £472 is what they want as our monthly payment. It will take about 8 years with the current figures.

Rgc_3

easypeasy wrote:

No, the surplus I have written of £472 is what they want as our monthly payment. It will take about 8 years with the current figures.

Hi

sorry i should have wrote that clearer..i was referring to the iva offer(i realise their after the 472 on a repayment plan

get in touch with cccs and get them to review the offer as its not realistic ...thats where i got ten years from (by decreasing the repayments it will obviously increase pay back time) (its too loaded against you both)

good luck

Eager_Elephant

Hi

Thanks for posting the figures of the mortgage - it is definitely very 50/50 because your actual debts are nearly the same amount as your equity so technically not insolvent.

I know you think CCCS have not been very generous but looking at figures for food there seems to be a bit of leeway in there to accomodate other expenses. For all the other columns are the figures all a lot lower than you would normally spend or more.

The problem is you don't have a lot of choice - can you try the budget set by CCCS and give it say 4 - 5 months and if you can't make the budget work go back to them and see if they can revise the payment.

My biggest concern would be if a creditor knew of your equity and went for either a charging order over the property or petitioned for your bankruptcy, it would definitely be worth there while because they would be guaranteed to get the money back you owe.

As mentioned before can you let us know the creditors, amounts and who's liability they are?

Thanks

EE

easypeasy_2

Ok EE, thank you. Will get those figures later this morning.

easypeasy_2

Ok Creditors list;

Alliance & Leicester Personal Loan
Liability; Partner
Amount Owed; £17,750

HSBC Bank Account
Liability; Both
Amount Owed; £3,192

Barclaycard
Liability; Mine
Amount Owed; £6,130

Natwest C Card
Liability; Partner
Amount Owed; £6,237

Capital One C Card
Liability; Partner
Amount; £190

Egg C Card
Liability; Partner
Amount; £ 6,664

MBNA C Card
Liability; Partner
£1,799

Barclaycard
Liability; Partner
£3,262

Barclays Bank
Liability; Partner
£1,175

Another thing to add is that with HSBC we originally owed about £600 less than what they are now saying. They have charged us horrendously for fees, especially when my partner was out of work (we did keep them informed all the time what was going on). Anyway they froze our account once they knew we was going ahead with an IVA. Is it worth claiming back the charges through the Small Claims Court ? Thanks !

Debt_Free_Chick

Re your SOA

At the risk of stating the obvious (sorry), if your IVA has failed, then you have not been keeping to your budget. The first thing you need to do is to look at where you have been spending more than your budget allows. These are "alarm" areas where you need to be careful about overspending in the future.

Remember that your budget is not a target e.g. you have £420 for food, toiletries & cleaning. You shouldn't be aiming to spend £420 each month - if anything, try to spend less so that this gives you some money leftover to put to something else e.g. to boost your emergency fund or to save for birthday presents, odd treats etc. You should be able to trim £50 or more a month off your food/groceries spend.

The budget is the maximum you can spend each month, on each item - not what you must spend

Have you visited the Old Style board for help with food & cleaning? They can squeeze blood from a stone over on that board!

easypeasy_2

Thank you Debt Free Chick. I do understand what you are saying, it's just changing my 35 years of thinking that is hard to do ! I am trying though and the other day I spent £12 in Wilkinson's and felt awful !!!

Will got and visit the Old Style board for some tips. There is so much on here to look at !