Urgent help please

kellbells

Hi there,

I need to ask a question about my Mum. She's currently in an IVA which was set up by Kingsgate paying £922 per month.

She has not been able to meet the payments for the last 2 months and has been referred back to Churchwood to assist her with Bankruptcy.

Churchwood have told her that she can get assistance from them do pursue the Banruptcy but she's a little anxious.

They have sent her all the forms necessary to fill out and requested a payment of £350 to cover the bankruptcy fees. They told her they would fill out all the forms for her and send these back. She then has to go to court with her £175 and forms.

She is still in employment and is keen to know how it is worked out as to how much she will need to pay each month. Will it be better than what she is currently paying?

Once the amount is decided, will she have to pay Churchwood or is it paid to the court?

I'm not sure if Churchwood just want her 'business' and nothing else.

Any assistance anyone can give would be greatly appreciated. She's going out of her mind with worry about the whole situation and just wants some clarification before she takes the plunge with Churchwood.

Thanks in advance,
Kelly

alastairq

Hi...firstly since the IVA has failed, Mum can petition for BR...and she doesn't need to pay anyone to do it for her.

The total cost is approx £700, which is paid to the Court, over the counter, on the day.
This cost is divided up into Court expenses and Fees to the Insolvency Service [the OR].

I suspect Churchwood are then going to want a considerable sum in addition for their own administration fees, filling out forms which your Mother will be required to give the information for anyway.

All the help and advice for these forms can be garnered on this particular Forum .


Regarding employment?

Once BR is petitioned and granted [no issues there].....Mum will have to complete a Statement of Affairs..[SOA]...listing all income, outgoings and so on [posting the SOA beforehand on here will elicit advice on what can, or cannot be allowed, and how much under each category].

If, after all reasonable living expenses are deducted from income, there is a surplus [currently, in excess of £20 per month]....then the OR will seek agreement on an IPA. [surplus-based]

This is payable, monthly, for three years from inception [not, date-of--petition]..and is an agreement and can be negotiated.
It can also be varied up, down or negated to reflect changes in circumstances.

I suspect it will be a much lower amount than that of the IVA, for less time as well....but I'm not privy to details so that is simply an opinion.