iva to bancruptcy???

d.j.s.1.9.8.9

Hi i have been in a iva for 23 months currently behind on 2 payments i am currently now struggling with what too do.
I want the quickest and best way now to solve my issues. I have spoken to the debt line and they said sticking with iva would be better but i am unsure and would like some advice as really dont no what to do.
I owed 21000 to around 7 lenders.
I am struggling more now due to having a 20 month year old daughter. If any one can help me with what best and could explain how bancruptcy works as the debt line said it would cost more than to finish my iva?.

d.j.s.1.9.8.9

Hi please can someone help with my query who may have been in the same place in debt.
Bit more about me.
I am 24
Live with parents
Have a car worth 700
Have a 20 month year old girl who does not live with me but i help pay for clothes nappies child care etc.

sort_me_own_yard_out

I can honestley say, IVA was the worst thing I could of done. I spent 9 months struggling just as much as I did when I was in debt then I struggled again once it failed to get the fees together. All the while once it had failed the creditors were calling and writing.

my turning point was going to CAB and taking their advice which wqas to go bankrupt. I did so in March last year I am on the countdown to being discharged and it cant come soon enough!

Your credit rating will already be shot from the IVA so that wouldnt be a concern to me. Do you work if so I am guessing you will have to pay your parents towards the cost of living under their roof etc and your payments towards your child.

Have you fallen behind on your payments because they were set too high in the first place?

Anondebtadvisor

If you have no assets you may consider bankruptcy an option for you to consider, if you are 2 payments behind already you only need to miss 1 more payment before your IVA company issue a notice of breach.

You will be given 3 months to rectify the breach, ie bring your payments up to date. During this time you can save money for the bankruptcy fee to declare yourself bankrupt when the IVA actually fails.

If you do it like this you wont get any hassle from the creditors as until the IVA fails you will still have he protection of your IVA

longtermplanner

d.j.s.1.9.8.9 wrote: »

I want the quickest and best way now to solve my issues.

the quickest way may not always be the best way

I have spoken to the debt line and they said sticking with iva would be better but i am unsure and would like some advice as really dont no what to do.

Is that National Debtline? If not, who? It really helps to know.

I am struggling more now due to having a 20 month year old daughter. If any one can help me with what best and could explain how bancruptcy works as the debt line said it would cost more than to finish my iva?.

could you tell us

1) how large your IVA repayments are supposed to be each month?
2) what you earn after tax
3) how much child maintenance you pay
4) how much you feel you can actually pay each month to the IVA?

Living with parents your expenses presumably aren't large - do you pay them rent?

If you go bankrupt now, you may have to make IPA payments to the Official receiver for 3 years, which is about the length of time your IVA has left to run. If your IPA would be the same as your IVA payment, you wouldn't gain anything from going bankrupt.

If you could go back in time, bankruptcy would probably have been a better option for you. But now, after 2 years, things may be less clear cut.

d.j.s.1.9.8.9

Hi yes
It was the national debt line i spoke to.
I am coming out with 1277 per month
My iva is 210 per month
I do pay board and shopping so board is 300
Shopping can be anything from 200 to 250 as i help buy nappies etc.
Childcare i pay 80. We are still together but not living togheter thats the hardest thing and with the iva i seem to be worse of as if any thing increase which it has i have no money to use.
I have a car worth 600 to 700
I need to to get to work and hospital as had a dvt.
I have no assits other than the car

longtermplanner

So would you like to live together? How would your joint finances look like then?

d.j.s.1.9.8.9

Yes in the future but at the moment i dont think is a optiin due to finaces she is only part time and her income is low so it wouldnt make it better for me or even help our chances of a home as we couldnt afford it.

sort_me_own_yard_out

You may better filling in a SOA calculator form http://www.stoozing.com/calculator/soa.php and posting it on here tht way you will include all your bills and expenses as by going by what figures you have just posted you have a lot of surplus income.

dancingfairy

Who is running your IVA? I don't think National Debtline do IVAs? Are you sure it's the real National Debtline you've spoken to and not some company who are signed you up for an IVA to try and make money out of you?
Also why are you struggling? I presume you drew up a budget when you put your proposal to your creditors? Have your circumstances changed dramatically? Have you had a car breakdown or other big expense?
Also it looks on the face of it like you should be able to afford your IVA comfortably from you've posted so there's obviously other expenses that you are paying out. If you fill out the SOA people might be able to advise further.
df

d.j.s.1.9.8.9

Hi ye my iva is was with rs tennon but now been given to grantthorton.
Yes i stated the iva before i had a little girl an since then its been a struggle with no spare income.
Reason for recent struggle is my board whent up to 300 from 250 cause their bills have rockted.
Petrol costs have increased and prob be like that for a
long time as i have had a deep vein throbosis and have to go hosi every week/2week for blood checks as wel i have a underline issue with joints so get hosiptal visits for that and some times are like 60 mile away.

My spred shot Statement of Affairs & Personal Balance SheetSummaryTotal monthly income1,277Monthly

Total Assets (things you own)0Total Secured & HP Debt-0Total Unsecured Debt-0Net Assets0Income, Expense, Debt & Asset DetailsMonthly income after tax1277
Mobile phone51
Cable TV10
Groceries etc.250
Clothing20
Petrol/diesel170
Road tax15
Car Insurance95
Car maintenance (including MOT)20
Car Parking15
Other travel0
Childcare/nursery80Other
child related expenses20
Medical (prescriptions, dentists, opticians etc.)20
0Haircuts24
Entertainment0
Holiday0
Emergency Fund0
daughters day out swimming play group20
ecig38
meals at work55
gym26
Total monthly expenses1229

Mortgage0(0)0Secured & HP Debt totals0--

Unsecured Debt totals00-

Cash0House Value (Gross)0Shares and bonds0Car(s)0Other assets (e.g. endowments, jewellery etc)0Total Assets0

You have sufficient monthly income to meet your expenses and your minimum monthly debt repayments with £48 left over. You can use this to pay off your debts more quickly or to build/top-up an emergency fund. Whatever your results show, it always pays to seek advice or comments from others. Why not post your SOA details on our Debt Management discussion board or on your preferred discussion forum elsewhere.
This i havent included ven getting my daughter a prescent for her bday or crimbo.

Yes the people i spoke to was the goverment one with free advise they said stay in iva but a freind said they would say that. Thats why i am hear looking for peoples advice who have been similer possiton.