help!!

kingdymond

My husband and I started an iva in November 2010,we paid this as required even though was still a struggle up until september 2012 when my husband was taken ill.He has been on statutory sick pay from Septembe so the iva gave us a payment break which has now ended.We are still not able to pay as he is still off work and could be for another 6-18 months,there is also achance may never be able to return.our iva has said we will need to fail our iva and make ourselves bankrupt which we can not afford as costs £700.the c.a.b told me about a debt relief order because with what we have paid takes our debt to below 15,000.this is not the case as because although we have paid £12,000 into iva our creditors have only received £6,500.please any advice would be gratefully received.
many thanks

Tixy

Will each of your individual debts be more than £15,000? Or might one of you be able to qualify for a DRO even if the other has to go for bankruptcy?

If so I would talk to CAB again and explain that is the case and so you won't qualify for a DRO. They should then help advise you on bankruptcy and how to manage your creditors in the meantime whilst you save up for bankruptcy fees.

Or if you didn't want to go back to CAB then try talking to one of the other debt advice charities - IMPORTANT - Where to seek professional impartial advice about your debts.

You may also be able to get some help with bankruptcy fees have a look at this link Charities who help with BR Fees

kingdymond

they are all joint debts unfortunately.so disheartened as thought we were doing quite well with paying off debts only to find that the iva people have had nearly half of the £12,000 we have paid.They have given me an option of failing the iva now myself and pertioning for bankruptcy or leaving it and them failing the iva and the creditors pertioning bankruptcy.would be interested to know if they failed the iva and pertitioned for bankruptcy would i still be liable for the £700 costs???? As things are at moment with husband off work and statutory sick pay due to end saving for the bankruptcy is not possible.

dancingfairy

You may qualify for part of the fee to be paid for you but you'd still have to find the 525 ish pounds (that would be each if you both qualified for free remission).
I think from what you've said you really have no choice but for IVA to fail. From there you may want to get an uptodate statement from each creditor to see whether you are below the mark for a DRO or not. If you are then that's great, if not then you'll have to sit tight and wait for a creditor to make you bankrupt from what you've said.
I'm assuming you don't own your own home or anything as your talking about a DRO?
df
Have you done a benefit checker to see if you're claiming everything you're entitled to? Try the one on the .gov website.