ending an IVA early?

wonderbetty

Hello everyone.
After a horrible year my options are an IVA or BR. I am in the process of getting an IVA proposal.
This is my situation. My partner of 15 years left me and our 6yr old and all of our debts. This is about 23k. I work part time, and get housing support for the flat we used to rent together.
More than half of the debt is his, but it is all in my name. I can not afford to pay anymore minimal payments since he left. I feel very used and upset.

My point is, if the IVA gets agreed then I'll pay what I can afford, i.e £100 a month for 5 yrs... £6000.

If my ex comes up with a lump sum say £8000 part way into the IVA can I use this as a final settlement fee if the creditors agree and end the IVA early?

I know it'll stay on my record for 6ys from the start date.

If it ends early am I restricted on my earnings for the remaining time period the IVA was originally agreed?

I'd really appreciate any help or advice or experience anyone has.
I am very stressed as I never expected any of this.:mad::mad::mad:

wonderbetty

Just to add, I'm not wanting to tell my ex about the IVA. I don't want him thinking he has been able to walk away and wash his hands. He does have a small area in his heart that is trying to pay his half off.

FavDaughter1

Hi, I'm new to all of this myself. I found out a few weeks ago that we'd got a lot of debt (my husband was trying to manage it all). You're in the right place for advice,hang on,someone will be along to help you. The main thing is to get some help,don't bury your head in the sand - debt grows if left!

We've spoken to the CAB and yesterday spoke to McCambridge who were very good. Take care where you go for help,post before you sign anything as some places charge up front fees.

Big hug

wonderbetty

Thank you. it is all very scary!

FavDaughter1

Yes it is, I've not slept properly since I found out & at the risk of too much info I've had a upset tummy almost every day - lost weight.

BUT, I promise you you're doing the right thing getting help, if you bury your head in the sand the debt WILL grow. Don't sign anything with anyone until you read up more,some places charge up front fees,good companies don't.

Some bills are priority,ie your rent or mortgage,water rates,gas&electric,council tax, don't forget food! they come first.

A member called Characo has helped us a lot,I'm sure he'll reply to you.

Someone with more knowledge will be along today so please hang on and keep checking back.

You're not alone.

Charco_2

The first thing you need to do is draw up a realistic I&E, then you'll know what you can realistically afford to offer towards a debt solution. If you think that's £100 then you're probably best considering Bankruptcy.

I wouldn't rely on your ex either... just draw a line under it and try to move on!

I know it seems like a very scary prospect but there is plenty of support on these boards and plenty of people who know what they're talking about. The Bankruptcy boards are a bit mad (coz they love bankruptcy a little too much if you ask me) but it's a nice wee family over there.

First step though is to draw up an I&E... if you need a hand with that i can help you!

EDIT: Sorry, just to add... Yes what you've described is all possible within the scope of an IVA - it's just that given the figures you're considering I wouldn't feel it was your best option... certainly discuss it with someone, maybe an IP! (I'd know better if I saw an Income & Expenditure though!)

wonderbetty

Yes, I am currently going through payplan. They are sending me out the documents to check and send back. They will lay out an I&E as I've gone through it with them on the phone.

They said £100 would be enough? is this not so?

as for the ex; most of this is his debt. To go bankrupt because of him is not something I want. If it was my wild partying and extravagant lifestyle to blame then i'd bite the bullet.

I want some kind of credit at the end as I have my daughter to bring up.

I've learned not to rely on him but there is a chance in the next year or two he will have the money to pay me back (his dead relatives house will be sold) so if I can agree a 5 yr payment and settle early then walk away without BR on my name I think I'd be better off.

So, do you not think they'll agree to my payment?
I'll post the I&E payplan are proposing when I receive it, weather permitting!
I'm not over spending in any areas, if anything it looks like i'll actually have a bit more cash in my pocket every month due to the living allowances.

Thank you by the way.

Charco_2

It may very well be acceptable, i'll not be too judgey until i see the I&E, but I just wouldn't have thought (at first reading here) that it would be the best solution for you - i obviously don't have a full picture on which to base that on!

Bankrutpcy wouldn't have that much of an impact against your name and if your ex ever did come up with a lump sum for you then that would all be yours, if your BR was done and dusted!

I do know what you mean, but I would hope you would speak to someone who would go through each of the options with you so you'd know which options were best for you - it's then your choice! Perhaps if someone explained the implications of BR to you, you wouldn't be so scared of it (maybe you'd still prefer an IVA but at least you'd know you were making an informed decision).

(and you can take that from someone who would normally direct people AWAY from BR!)

(And i dont like Payplan either!)

wonderbetty

Thanks, I'll read up on it. I just feel that the posibility of settling an IVA early is better than the restrictions of bankrupcy on my future i.e ever settling down with anyone again.

Can I just ask, I've applied for a regular current account from natwest before this whole thing goes through so i can protect my earnings etc.

Is this account likely to be closed down if they see the insolvency register if I decide to go through with the IVA?

I really appreciate your help, things are very muffled in my mind.

I expect i'll have loads more Q's over the next few weeks and I think they will most come at around this time of the morning :eek::eek: