IVA refused - no other option but bankruptcy

Twinks1980`

Hi,

I was wondering if anyone could help me with a few questions?

My IVA was refused last week. I had been sending token payments to my creditors until the outcome of my meeting, which obviously didn't go the way I planned. (This also wasn't nice as it was my birthday and I'm seven months pregnant - stressed is not the word!!!!).

I am going to file for bankruptcy but can't afford to do this until the beginning of September. I have already had calls from a few of my creditors - the one (and only one) that refused my IVA phoning practically every day, texting and emailing me. I do not want to speak to these people over the phone and have been writing them letters since my money problems began and up until the IVA being refused they all held off.

Now here are the questions!!:

1. Should I send them a token payment this month like I have the previous months?

2. If so, should I say in the accompanying letter that I am planning on filing for Br and the date on which I plan on filing?

3. What happens in the mean time if they file a CCJ against me? - Will the judge order me to pay over the money I have been saving for the bankruptcy fees?

Many thanks in advance for any help!

Twinks

fermi

1. Up to you. Doesn't really matter if you do or don't if you are going BR in Sept.

2. Again, doesn't matter. They normally don't believe you anyway, and I can't see much point.

3. Would take over a month before they could get a CCJ if you acknowledged service, and much longer before anything could be enforced. The judge can't directly order you to hand over the BR fees whatever happens.

Even if they started proceedings for a CCJ tomorrow, you could delay the CCJ and any enforcement enough to go BR before there is any chance of it causing a problem.

sniggings

Turn off phones etc

First thing is to pay all your living expenses first, food gas rent council tax etc then and only then think about paying anyone else, as you are going BR then there is no reason to as all you will be doing is extending the time it will be until you go BR, as you will take longer to save the fees.

No you will not get into trouble for this.

If you really think an IVA is for you , you could tell this one lender in simple terms, that this is their last chance, either accept the IVA or I have to go BR and you may get nothing.

Main thing to do is ring one of the help lines CCCS CAB debt line as they will give you detailed help and it is also needed for your BR to go ahead.

Ring your court for the forms 3 are needed, quite a lot of paper so get them send if they offer that, as some get told to print then off their site. Also ask about the process, dates for handing in forms and the BR date as all courts work it slightly different.

Most important though, either unplug or change phone numbers, you don't need the stress.

Good Luck, you will feel loads better after doing that.:beer:

Depth_Charge

Twinks1980` wrote: »

Hi,

I was wondering if anyone could help me with a few questions?

My IVA was refused last week. I had been sending token payments to my creditors until the outcome of my meeting, which obviously didn't go the way I planned. (This also wasn't nice as it was my birthday and I'm seven months pregnant - stressed is not the word!!!!).

I am going to file for bankruptcy but can't afford to do this until the beginning of September. I have already had calls from a few of my creditors - the one (and only one) that refused my IVA phoning practically every day, texting and emailing me. I do not want to speak to these people over the phone and have been writing them letters since my money problems began and up until the IVA being refused they all held off.

Now here are the questions!!:

1. Should I send them a token payment this month like I have the previous months?

2. If so, should I say in the accompanying letter that I am planning on filing for Br and the date on which I plan on filing?

3. What happens in the mean time if they file a CCJ against me? - Will the judge order me to pay over the money I have been saving for the bankruptcy fees?

Many thanks in advance for any help!

Twinks

Hi Twinks

Just following on from other posters

What was the reason(s) you were looking at an IVA over bankruptcy in the first place?

Are you sure about bankruptcy, have you taken appropriate advice on all opitions / implications?

Did / have the IVA company advised you on the pros & cons of bankruptcy and other possible options / implications etc as some of the questions you ask should really have been already explained in my opinion.

Do you own a property?

Could you put up your Statement of Affairs (SOA) ?

Just making sure that you understand the B/R procedure and possible implications - if in any doubt get advice from the agencies mentioned by another poster.

Twinks1980`

Thanks Fermi & Sniggings.

Depth Charge - An IVA is what Payplan suggested, so the husband and I went along with it! (His IVA was accepted, mine wasn't). I have been on the phone to CCCS tonight and will be getting a call back on Tuesday.
Payplan didn't want to know me after I said that I was going for bankruptcy rather than them organising a DMP for me and fobbed me off with, "well we don't deal with that, so you'll have to try somewhere else".
We don't own a property and have no joint debts.

I currently owe approx £11k, a mixture of overdraft, loans, payday loans, credit card, store card and catalogue. I am temping and will be for one more month and will then be in receipt of only Maternity Allowance and Child Benefit which will be approx £650 per month.

I am aware of the procedure of the br and implications, I just wasn't sure of what my creditors can do if they know I am saving up to file!

Thanks!

Twinks

JCS1

Have you thought about a debt relief order? You would be under the £15k limit of debts, though there is other criteria you would have to met. Be back in a minute with the link.

Here you go:

https://forums.moneysavingexpert.com/discussion/1385275

Depth_Charge

Twinks1980` wrote: »

Thanks Fermi & Sniggings.

Depth Charge - An IVA is what Payplan suggested, so the husband and I went along with it! (His IVA was accepted, mine wasn't). I have been on the phone to CCCS tonight and will be getting a call back on Tuesday.
Payplan didn't want to know me after I said that I was going for bankruptcy rather than them organising a DMP for me and fobbed me off with, "well we don't deal with that, so you'll have to try somewhere else".
We don't own a property and have no joint debts.

I currently owe approx £11k, a mixture of overdraft, loans, payday loans, credit card, store card and catalogue. I am temping and will be for one more month and will then be in receipt of only Maternity Allowance and Child Benefit which will be approx £650 per month.

I am aware of the procedure of the br and implications, I just wasn't sure of what my creditors can do if they know I am saving up to file!

Thanks!

Twinks

HI

Interesting and thanks for the reply.

I was just wondering why an interlocking IVA was not suggested (maybe it was) but reading your post above again I can think of a couple of reasons why not.

As JSC has mentioned with debts below £15000 you are under the max with £11000 for a DRO however if you meet other eligibility criteria is another matter and you would have thought your IVA advisers would have gone through this.

Not knowing the full overall household income and circumstances it could be an interesting one for the O/R to look at I/E wise in bankruptcy with one half in an IVA.

With no property at risk then there is not much your creditors can do while awaiting bankruptcy from what you have put.

Payplan - well, they are not a charity and never have been as far as I am aware, just another profit making company like the rest, they do provide free debt management plans though.

Let us know what CCCS say & how you get on if possible

Best wishes

tigerfeet2006

Has your DH signed the forms yet? It might be worth asking CCCS what they recommend he does as I am wondering why Payplan went for an IVA over BR ( actually I know why, they get fees for an IVA and not BR). It is just with no property to protect it seems a no brainer unless there are other circumstances.

Twinks1980`

Hi there,

Depth Charge - It was an interlocking IVA, but one of my creditors refused, so his is now Individual.

Tigerfeet - Hubby has already signed and made the first payment towards his IVA.

I've spoken to CCCS and they've agreed that my best course of action will be Br - I won't qualify for a DRO

I now have the task of filling out the forms!!

Twinks x

fatbelly

Twinks1980` wrote: »

I've spoken to CCCS and they've agreed that my best course of action will be Br - I won't qualify for a DRO

Too much surplus income?

Fancy a second opinion from the CAB?

Twinks1980`

Hi Fatbelly - defo not too much surplus income! I'll only be receiving Maternity Allowance by the time I've saved up the fees, so I'll have approx £20 spare a month - if that! The problem is that I'm nearly up to the £15,000 limit and by the time I go for a DRO I'll probably be over. (I can't go for a DRO yet as I'm still temporarily employed - I also thought my debts were circa £11, but it appears the !!!!!! who rejected my IVA proposal have added on lots more interest and charges than I originally thought were outstanding).

Twinks x