IPA

mwarby

I think you'll struggle to get an IVA with money for meals out and cinema, gym is questionable as is dry cleaning and perhaps window cleaning. An IVA needs to be approved by creditors, bankruptcy does not so creditors do have a lot of sway over the budget and repayments

mwarby

Minkym00 said:

You can't cancel a bankruptcy, but you can annul one. As you have stated, even after bankruptcy, you can still ask your creditors to agree to an IVA. However you still have to pay the OR's full fees (around £9k).

If you are sofa surfing at the moment then you are effectively homeless.It is not unreasonable for you to want your own place, however this could be very difficult as you won't pass any credit check.

Please, just put up your SOA for advice. There will be expenses you haven't thought of as you've not been able to afford them. Plus you spend more money when you're working (think work clothes, dry cleaning, more haircuts, travel, lunches as work etc).

remember the IP in an IVA doesn't work for free either, their fees are I believe based in part off what they can collect for the creditors. I'd say if your paying £1k a month you could easily be looking at 3-5k of fees, so that 12k of fees you'd be paying

edit - of course not everyone would pay the IP fees, it's only once you get to the stage that 100% of debt has been repaid does it affect you, in other cases it simply lowers what your creditors will recieve. An IVA would run until the end of the agreed number of months/payments or once the debt and all fees are repaid, whichever is soonest.

sarahpertwee

mwarby said:

I think you'll struggle to get an IVA with money for meals out and cinema, gym is questionable as is dry cleaning and perhaps window cleaning. An IVA needs to be approved by creditors, bankruptcy does not so creditors do have a lot of sway over the budget and repayments

I do have my own place but haven’t been able to pay the mortgage since of been out work , I think my beat plan is to try hold on to my own place and pay back the mortgage arrears would this be acceptable in SOA and paying back missed payments on car and mortgage and bills if included could stop me paying on IPA couldn’t it 

mwarby

In bankruptcy its complicated, it comes down to the amount of equity you have. This is because in bankruptcy your home can be sold (they have 3 hears to do this), as I understand it your arrears and shortfall would be written off in this case. Given this I'm  ot sure that mortgage arrears would  be a priority in  bankruptcy

In an IVA most proposals would include clearing mortgage arrears, but while your home wouldn't be sold, it's likely you'd need to remortgage or take a secured loan at the end of the IVA to release equity for creditors

I think we need a clear SOA to help further you need to include

your income

your assets and their approx value (eg car home etc)

your debts

your expenses (if these are split with partner, either 50/50 or split according to wage)

the site most use for SOA is https://www.stoozing.com/soa.php

note an SOA is a statement of affairs, this is used as the starting point to setup an IVA proposal or an IPA. Ultimately its the creditors in an IVA or the OR/trustee/courts who decide on the payments. What we can do is help flag what these parties are likely to find acceptable and point out pros/cons of the insolvency options you have

Minkym00

You’re living on your friend’s couch?

You’ve listed £600 rent on your expenses?

You have a mortgage that’s in arrears? 

This is making less and less sense....

sarahpertwee

Minkym00 said:

You’re living on your friend’s couch?

You’ve listed £600 rent on your expenses?

You have a mortgage that’s in arrears? 

This is making less and less sense....

I have a mortgage in arrears because I haven’t had a job since October and I am on my friends couch because I don’t have a telly or anything at my place and not able to afford food I had to sell items to raise money for the bankruptcy 680 pound 

sarahpertwee

Minkym00 said:

You’re living on your friend’s couch?

You’ve listed £600 rent on your expenses?

You have a mortgage that’s in arrears? 

This is making less and less sense....

Obviously when I start working I’m either going to be renting somewhere or trying to pay my mortgage back 

luvchocolate

You really need to give us the whole picture or these amazing people can't help

sarahpertwee

luvchocolate said:

You really need to give us the whole picture or these amazing people can't help

Right here it goes I lost my job beginning of October last year I had a few loans which totalled 25-30k I was always able to pay for them as I was highly paid I lost my job I have a mortgage only had it for 3 years and put minimum deposit down so not much equity  , I struggled to find work so I was eating into overdraft got to February I thought it was best option as I couldn’t find work was to declare my self bankrupt I had to sell items from my flat to raise money for bankruptcy tables tvs hoovers also used this money to live and pay for food , I have been on my friends sofa living with him as it’s depressing sat in a house with nothing to watch can’t even hoover !!then this Coronavirus happened and had no chance of getting decent job , l searched and applied for hundreds of jobs I luckily got one which is better pay than my last job now I am in limbo what to do , I’m in mortgage arrears  car loan arrears , I start in two weeks this new job I don’t have a clue which way to go do I give the house up and rent with money from new job do I pay my arrears then tell official receiver my current outgoings are a 20 pound phone bill and the food I’ve been eating , obviously this will change when I start working I need to get my car sorted fuel etc , could someone please just show me what I am entitled too which way should I go , should I try and change bankruptcy to IVA , do I try and contact creditors myself and agree to pay them my self , I could easily pay anywhere between 1000 -1200 pound a month I want to pay all the money back , 

mwarby

ok so from ogher posts your expenses are

Rent	£600.00
Council Tax	£110.00
Water	£25.00
Electric	£75.00
Heating	£75.00
Car Loan	£170.00
Car Fuel	£300.00
Food	£300.00
Hair cut	£20.00
Dentist	£12.00
Car tax	£20.00
Car Insurance	£75.00
Mobile Phone	£30.00
Window Cleaning	£20.00
Dry Cleaning	£30.00
Clothes	£50.00
Car Maintenance	£40.00
Broadband and TV	£40.00
Gym	£40.00
Emergency Fund	£20.00
Presents	£50.00
Meals at work	£36.00
Total	£2,138.00

Debts 25-30k (presumably just unsecured debts)

my comments on the expenses

Now not all of these will fly IMHO Gym, Presents, Window and Dry cleaning all all questionable. If its just you, I think food is £50 or so too much. Presents £600 a year is a lot, you might get £100 each per year for children, but much more would have to be funded from economies made elsewhere.Your car fuel is quite high too, you might be asked to explain this, if your not working I'd think £50 per month would be a more acceptable figure, and of course yiu can't claim meals at work if not working(many also expect that to come out of the food budget)

based on the info we have I'd suggest

- an IVA is no go if you don't have a steady job (IVAs can fail, one of failure reasons is being unable to make payments at the agreed level, yes the IVA can be varied but the creditors can refuse this. If the IVA fails your back to square one, but with IP fees as additional debt)

- an IVA could stop yiu losing the home you have mortgage on

- in bankruptcy your likely to lose the home you have mortgage on

- an DRO is unsuitable as you own a home, also the debts are too high

now some questions

is the £600 rent or mortgage, ? if rent why are your renting, you will not get to pay mortgage and pay rent without a very very good reason

The property you own, how much is it worth and how much is left on the mortgage ?

You mention arrears how much ?

What income if any do you currently have ?