Iva, What next?

Hi all.

I was a bit silly in my twenties, well paid job, but everybodt threw credit cards/loans at me, and it was just 2 easy to spend it.

Started an iva 2 years ago, and am now suffering badly.

I lived with my parents when i started it, but have since married and am now renting privately.

Split up from the wife due to money problems, and am now back with the parents for a short while.
Thing is i cannot cope with the iva, when i left the rental place, i owe about 3 months on everything, council tax, telephone, electric, etc, and am starting to receive ccjs

I take home about 1500 a month, pay the iva 500,(debts around 50k) managed to get a loan whilst in the IVA for 3000, paying back 180 a month, i also borrowed from my father 5000, paying him back 125 amonth, and 6000 from a freind, paying back 220 a month.

so in summary i get 1500, but pay out about 850 per month, and am looking at getting back with the wife, but cannot see how we can afford to live together, also im sure the ccjs will come up and bite me soon, as i have just been ignoring them, i am on medication for depression now, and am just starting to try and come to terms with this.

i Hvw not taken any advice, as i have just ignored everything, but realise things are going to come to a head soon, and beleieve bankruptcy may be my only way out, but would i honestly be any better off?

I am also thinking about quiting, or being asked to leave from my job, as this might solve things for me, but i dont fancy the idea of being unemployed for 5 years.

when bankrupt, do you still have to pay back a monthly amount?

Any way of keeping your name out of the local paper, as this will probably kill my mother with shame?

Anything else i should consider?

thanks
Barry

Comments

  • jen_jen_2
    jen_jen_2 Posts: 1,032 Forumite
    have you spoken to the company that set up the iva, there may well be a clause in there that says if there has been a change of circs the iva terms - ie the montly payment can be reconsidered.

    no good news though an iva is a form of insolvency and if you dont keep it up the person who oversees your iva could apply for your bankruptcy, they are also unlikeley to be happy with the extra debt you have aquired.

    i dont see how unemployment will help you, the iva or bankruptcy will still be there, you may have to pay into a bankruptcy for up to 3 years but it will not be as much as the iva. the OR will take what is left over after essetial expenditure so if you are renting after the bills etc have been paid.

    the worst thing you can do is leave this, get some advice i suggest a phonecall to CCCs or your iva company.

    i also doubt your mother will die of shame, she loves you i am sure and would rather see you happy than depressed and stressed.

    take care
    Ready to Go Go!
  • It sounds to me like the IVA is not the problem - it's YOU.

    You state that you had an IVA up and running - yet whilst in this you have continued to borrow more money. Another £12k by your figures.

    An IVA is a legal arrangement. You should contact the insolvency practitioner who put it together and notify them of your further debts. It may be possible that a new plan can be put together and the creditors would be likely to go for this as if you went bankrupt they'd get very little.

    YOU NEED TO STOP BORROWING MORE MONEY.

    Ignoring the letters and CCJs will not make it all go away.

    Visit your local CAB WITH all you paperwork. They can advise you on the latest law regarding bankrupcy (it has changed since I was there). Debt needs to be prioritised and if you now have council tax debt as well you must prioritise this.

    I'm not sure how losing your job will help you. There are certain occupations where being bankrupt or even in financial difficulty is not allowed i.e the police - so unless you fall into one of those categories then you should aim to keep your income.

    Maybe your employer has a welfare department where you can discuss your problems in confidentialty - if only so your employer can give you some support.

    Take home pay of £1,500 sounds pretty good compared to JSA.
  • Xbigman
    Xbigman Posts: 3,884 Forumite
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    You have real problems. If you borrow whilst on an IVA its not actually illegal but when you go bankrupt you will be considered to have been irresponsible and in danger of having your bankruptcy extended, it could be up to 15 years.
    You say your mother will die of shame, how about the way your father will feel when you tell him you can't pay back the 5000 you owe him, or your friends 6000. These debts will be written off by the OR and it will be illegal to repay them whilst bankrupt, not that the OR will leave you any money.

    Sorry but anyone who borrows that kind of money from relatives/friends then wants to give up their job and run away gets no sympathy from me.

    Go to CAB and tell them the situation. Tell your family and friends the truth and start to actually repay some of the money you owe. You will get more respect for this from others than you might realize and you will feel better yourself.
    Regards



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