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IVA Worry Huge Problem

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Hello I am new to this forum. Myself and my husband entered an IVA at the start of this year after struggling with unsecured debts for over 10 years. The situation had got so bad we were using credit cards to feed our family and two small children. My husband had a huge wage cut £3,500 per year a couple of months ago which has left us in a position where we cannot afford the £200 IVA payment. We have continued to pay borrowing enough to last us the month from our elderly parents but this month have no money left with two weeks until pay day. We just cannot go on like this anymore. I was wondering if we might be better off filing for bankruptcy we have around £10k equity in our property but we are frightened that this will be taken if property is forced sale and then we will have no-where to live. Please can someone provide any advice on this situation? I have contacted the IVA company and they are going to talk to me about a possible reduction but the thing is that after paying essentials like mortgage gas electricity council tax and food we have no disposable income left. What will happen

Comments

  • FiatFan_2
    FiatFan_2 Posts: 269 Forumite
    Sorry to hear about your situation. Did you contact your IP when the income decrease came about and what was their reaction?
    Roll on DFD, final payment 1st October 2017 :beer:
  • unwitting wrote: »
    Hello I am new to this forum. Myself and my husband entered an IVA at the start of this year after struggling with unsecured debts for over 10 years. The situation had got so bad we were using credit cards to feed our family and two small children. My husband had a huge wage cut £3,500 per year a couple of months ago which has left us in a position where we cannot afford the £200 IVA payment. We have continued to pay borrowing enough to last us the month from our elderly parents but this month have no money left with two weeks until pay day. We just cannot go on like this anymore. I was wondering if we might be better off filing for bankruptcy we have around £10k equity in our property but we are frightened that this will be taken if property is forced sale and then we will have no-where to live. Please can someone provide any advice on this situation? I have contacted the IVA company and they are going to talk to me about a possible reduction but the thing is that after paying essentials like mortgage gas electricity council tax and food we have no disposable income left. What will happen

    Hi

    Sounds like you are really struggling at the moment

    Are you struggling with your priority expenditure such as mortgage payments?

    I was wondering if there was any chance of your income increasing again in the future?

    Any ongoing PPI issues?

    It is hard to say that much from what you have put so far however you may have a number of long term options but at the moment you are tied to the IVA and best to see what your IVA company come up with first.

    Have you had a good read through the terms of your IVA including any clauses relating to your home?

    The equity issue could be tricky if the IVA was to be failed.

    The equity issue will likely feature in any future bankruptcy thoughts unless you have a third party that could buy out any deemed surplus (your parents for example)

    Did the IVA company advise you on bankruptcy at the outset including the pros & cons etc

    It would not be realistic or sensible to guide you much further without knowing your full circumstances.

    I know this might be asking a lot at this stage but is it possible that you could you put up your current (SAO) statement of affairs?

    Best wishes
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