Iva no longer an option, now what

SIRENS

Well looks like iva is over before it even began, had a letter from tax credits dropping payments to zero which means we do not have any disposable income to enter into an iva, also have just been notified that I owe council tax arrears in the amount of just over 2k.
Don't know where to go now, probably end up in prison for benefit fraud although due to my own ignorance I thought I had notified the council and that hm&r had also notified the council that dh was back at work.
Am really lost now

Tixy

Hi

I am sure this is a real blow especially when you had prepared yourself mentally to go on an IVA.
I would go back to whomever was advising you (was it payplan?) or to one of the debt advice charities to chat through your choices in your new situation without that income.

There will still be some options available to you for dealing with your debts.

SIRENS

Thanks tixy have spoken to payplan, they say that dmp and iva are no longer an option only writing to my creditors myself or bankruptcy.
I feel so lost thought I'd found a plan but I guess not. I don't want to loose my house through bankruptcy feel like doing a reggie perin.

longtermplanner

How much do you actually owe? the debts you listed on your previous thread were not very large.

Writing to your creditors yourself may well be a good options for you. Have a look at the self administered DMP on this CAB site: https://nedcab.cabmoney.org.uk/dmp.asp. It will generate all the letters for you.

SIRENS

Thanks longertermplaner I owe around 21k plus the council tax now.

I think self admin might be my only option, I am nervous of doing this myself though in case I muck it up. Thank you for the link though I will look into it x

longtermplanner

ah sorry, I must have misread your earlier posts, I thought you were looking at less than 10k inc council tax arrears.

21k+ CT is too much for a DMP is you can only afford low repayments, that DMP is never going to end. DMPs don't stop creditors calling you, your sdebts being sold on, being taken to court etc.

With a house in a poor state of repair, it's just going to crumble around you. On a DMP you won't be able to afford to maintain let alone improve it.

You need to look seriously at what the house could be sold for. If no or negative equity, then you may be able to stay in it if you go bankrupt. If low equity, then look at selling the house, renting and going bankrupt. If there is more equity than you think, there may be enough left over for a 'single payments IVA'.

SIRENS

Thanks longtermplanner I think if I sold the house and rented it would be more than my mortgage, we are not eligible for council housing and private renting here is very expensive.

UpToMyNeckInIt

I know it sounds mad, but in addition to speaking to the creditor-funded charities, speak to a couple of private sector IP's to discuss your options.

Choose a couple of well reviewed ones. Iva dividends of less than 10p in the pound are not unheard of.

The only proviso is of course having surplus affordability.

Another option may be to cash in your endowment, and offer this as a 'full and final' iva?

Hope you find an acceptable solution.

SIRENS

Thanks Uptomyneckinit I'm just waiting for the council to respond so I know how much I owe in arrears and then will contact my ip and try a couple of different ones.
I cannot cash in the endowment as it linked to my mortgage and any money will go directly to my lender.
My ip said that I would need to shave around £80 off my figures to still be considered for an iva although I guess this will be even more once I take into consideration extra payments to the council tax.

alastairq

http://debtcamel.co.uk/debt-options/

fatbelly

SIRENS wrote: »

Thanks longtermplanner I think if I sold the house and rented it would be more than my mortgage, we are not eligible for council housing and private renting here is very expensive.

You would get some housing benefit so you need to do some sums (turn2us calculator) and work out if you could live by paying the net rent after benefit.


But look at the other options as well.