Our IVA has failed :(

Eager_Elephant

Hi me again

I think you need to be aware that there is a the possibility that A & L may take this further, the amount owed is a considerable amount and as it only costs a creditor £750 to make you bankrupt they would get the money owed and the costs recouped.

Potentially your husband could go bankrupt, I make it that he owes £37,000 (this not include the joint debt).
His half of the equity is roughly £18,750 which means he is insolvent.
Either you would have to sell the house to release half his equity or do you have a family member or friend who could purchase his half of the equity with the money going to the OR. They wouldn't need to have the full £18,000 as you may be able to negotiate with the OR for a reduced price due to a quick forced sale always attracts a lower price.

This would mean you would not lose the house and then your part of the debt, the £6,000+ plus the joint debt which would become your liability could be paid at a reduced rate after you know whether your husband will have an Income Payment Arrangement.

I reckon you could probably be clear in 3 years as long as you stick to the budget.

Can I just confirm that your IVA did not fail as in you missed payments but that the creditors would not accept it? (If this is the case then the bankruptcy clause does not happen)

Any questions fire away.

EE

easypeasy_2

Eager_Elephant wrote:

Hi me again

I think you need to be aware that there is a the possibility that A & L may take this further, the amount owed is a considerable amount and as it only costs a creditor £750 to make you bankrupt they would get the money owed and the costs recouped.

Potentially your husband could go bankrupt, I make it that he owes £37,000 (this not include the joint debt).
His half of the equity is roughly £18,750 which means he is insolvent.
Either you would have to sell the house to release half his equity or do you have a family member or friend who could purchase his half of the equity with the money going to the OR. They wouldn't need to have the full £18,000 as you may be able to negotiate with the OR for a reduced price due to a quick forced sale always attracts a lower price.

This would mean you would not lose the house and then your part of the debt, the £6,000+ plus the joint debt which would become your liability could be paid at a reduced rate after you know whether your husband will have an Income Payment Arrangement.

I reckon you could probably be clear in 3 years as long as you stick to the budget.

Can I just confirm that your IVA did not fail as in you missed payments but that the creditors would not accept it? (If this is the case then the bankruptcy clause does not happen)

Any questions fire away.

EE

Sorry, when I meant our IVA had failed it was because it never began to start with ! The Creditors Meeting failed.

The thought of bankruptcy scares the life out of me, not too sure why, maybe a stupid stigma in my mind that our life would be over ? I need to re-read your post a few times to get my head round it, but so appreciate your advice. Thank you so much.

flis21

Eager_Elephant wrote:

Can I just confirm that your IVA did not fail as in you missed payments but that the creditors would not accept it? (If this is the case then the bankruptcy clause does not happen)

EE

The bankruptcy clause is not automatic in IVA's. We thought it was, so when our IVA failed (due to us not making the payments) we assumed we would automatically be made bankrupt (in fact this was what we wanted) but it has not happened. We are now having to save up the court fees to declare ourselves bankrupt.

All the IVA agreement says it that they have the option of making you bankrupt if it fails, not that it will automatically happen.