Scared and confused, please help!

miss_prim

Please could someone give me advise regarding IVA versus Bankruptcy. My situation is that my Oh and myself are awaiting a date for a creditors meeting with an expected payment of £288 a month if the IVA is accepted, but what worries us is that our surplus income is entirely from my husbands DLA.If he was to lose this then our IVA would fail and BR would be our only option. Would the DLA be classed as income if we were to go down the BR route? At the moment we have used all but £20 of his DLA as income for the purpose of the IVA even though he gets full mobility allowance, otherwise we would not have any surplus. This scares the hell out of us because we usually put it aside for when my husband is unable to work due to his disability and then use it for lost income, he is very independant and wont give up working and go on benefits,this income acts as a cushion for us when we most need it. He is also very dependant on his car for mobility reasons so hence we have high fuel costs. We have a property which cccs have calculated to have about £28000 neg equity using the 85% rule so BR may be a better option. Please help!

SunshineBear

Sorry Miss, I can't advise on your situation. Keep viewing these threads and help will come on your particular issue.

SB

Charco_2

Don't have time to go in to this right now but what I would say is, if you are having doubts then wait... Taking an extra couple of days to decide is not going to amount to a whole pile of beans in the long term. And you should only proceed if you are sure!

FoggyBrain_2

HI there. As Charco says, take some time and do a little more research. Maybe pop over to https://www.iva.com and have a word with a couple of the IP firms listed there for further, specific, advice. Normally DLA is eaten up by the expenses it is designed to cover, so wouldn't figure as being disposable income.

Also, feel free to post this query up on https://www.iva.co.uk. Many IP's post there as well as those that have been in both IVA and BR.

niknaknat1

HI there,
I have just found this on an IVA information website and thought it might help you in coming to a decision regarding your situation.

Can I do an IVA if I receive Disability Living Allowance DLA

Yes, Disability Living Allowance (DLA) can be accepted as part of your total income, and receiving Disability Living Allowance (DLA) does not stop you being able to apply for an IVA.
DLA is a tax free benefit for adults and children, provided to assist with the associated costs of living with a disability, covering carers costs or costs for providing supervision.
So long as those costs are being met, and there is still an overall surplus in the household income and expenditure, then an IVA could still provide a fitting debt solution.
Where the caring costs are difficult to calculate due to the changing requirements of the sufferer, an allowance will be provided to show the needs at their most expensive level.
This ensures that there will always be sufficient funds available to cover the sufferer’s day to day caring requirements.

Also as far as I am aware DLA is not taken into consideration in BR.
Hope this helps xx

miss_prim

thanks Charco, have posted a question on the BR forum to the cccs expert asking for clarification on how much we would have to pay into an IPO,really dont want to enter into something that may be doomed to failure, had to cope with enough stress without adding to it. Had we found this forum beforehand we may have reached a very different conclusion. We also thought that we would have to give the house up but that doesnt look likely either if they use the same formula for calculating equity in both BR and IVA. thanx again and any more advise would be greatly appreciated.

Thanks also niknaknat1 i am just clarifiying with cccs with regards to DLA and BR, think this may be a better solution to our problems and then we can start to rebuild our lives, eat , sleep and be healthier again, stress is a wicked thing !