IVA no way

poppysarah

I spent an hour going over some stuff with a friend and got them to write out their expenses and income - he's got an IVA but his circumstances have changed as it's come into effect so he desperately needs to sort it out again.
They did take into account his GF's income and that left them the required minimum 200 a month to pay his IVA. She's left him and now he's left with virtually the same outgoings but less her wages. Which obviously means there's not enough money to pay his bills let alone an IVA.

He's about 200 a month short of living expenses, can't get any benefits of any sort.

He's going to need a car to get to work (unsocial hours, shifts, no public transport available) so what happens about that?
He's currently got a car loan on top of his IVA stuff (Don't understand them enough to know why they can't include that in it)

He's faced with bankrupcy I think. I don't see any way round it. He can't work extra hours where he is but it's shift work that means it'd be hard to find a second job to fit in around that.

I was shocked reading through the paperwork that of the money he pays back an awful lot of it goes to the IVA company!!! Over 50% I think! This really shocked me. (I know it's probably a sep issue to all his financial worries)

I've told him to send a copy of his outgoings to the IVA company so they can see what's going on there.

What if the people he owes money to don't make him bankrupt? The IVA company did suggest he goes back to debt management but he's not got money for them either.

tigerfeet2006

The first thing he needs to do is get in touch with one of the debt advice agencies. Numbers and links in my signature. They will take him through all his options and help him decide which will be the best direction to take.

From what you say he obviously went to an IVA company who advertises on TV or the papers and they are screwing him for every penny they can get.

It is highly unlikely that a creditor will make him BR as there is nothing in it for them and they will have to pay lots of money for the privallage (HMRC, COUNCIL AND aMEX ARE GENERALLY THE eek! sorry baby helping! the only ones who will.) Ialso doubt whether his IVA company have made a BR fund either. He will have to check whether they did have a BR contingency.

poppysarah

So if there's nothing in it now for them and nothing in it for them if he goes bankrupt then that sounds like limbo!

I'll pass on the numbers to him. Thanks

poppysarah

I've given his mum the phone numbers to pass on but she doesn't want him to go bankrupt. I think she is suggesting she pays his IVA.

I think she's completely mad. He's going to owe her the money then and as her and his dad are retired it's not like they're rolling in it.

tigerfeet2006

The problem is at that age BR has a stigma and they just know the horror stories of the past and how it used to be.

Is there anyway you can contact him with the details directly or is there anyway he can get on to the internet.

CCCS_Matthew

Hi there,

If his situation has changed he can request to his Insolvency Practitioner to have a re-proposal with his creditors. However if he’s now in a position where his priority outgoings meet his income and there is no surplus available for the debts then a re-proposal will not help.

As Tigerfeet has already said, unless he’s got any sizeable assets it’s unlikely that his creditors will make him bankrupt but that doesn’t stop him from petitioning for his own bankruptcy. At this stage without knowing more about his overall situation it’s impossible to say whether that is his best option.

Our advice is limited at the moment, as whilst he’s still paying into an active IVA we cannot go through the process of having a full appointment with one of our counsellors. However, he may benefit from using Debt Remedy which sum up his options based on his current income and expenditure which might help him make his mind up about how he wants to deal with his situation.

Hope this helps,
CCCS

poppysarah

I can give him the numbers later too - I'm sure she'll pass it on though.


His allowed outgoings (based on the amounts they have allowed him previously) come to about 2-300 more than his income. (And this is with reduced rent and CT now but obviously with just his income)

I'll give him that URL later if he comes round - he can use the net here.

I just think he's putting off the inevitable - but I will try to get him to call these debt helplines.


One of the things she says is she's worried he won't get a bank account - I've read through that other thread and it reckons the co-op will give one. He's had loads of trouble getting one with an IVA (used to use ex's bank account) - but he's got one now.

tigerfeet2006

Get him to come on here and read the forum as well and ask anything that is bothering him.

The Co-op cashminder account is BR friendly. It has internet and phone banking. You can open it on the phone. It has a Visa Electron card. If you don't have a branch near you can deposit money via the post office.

poppysarah

Will do! Thanks.
He's been reading piggy bankrupt I think - another site he found

poppysarah

I just wanted to add my thanks for the advice on this forum and thread. He's been to the CAB with his mum who know believes that going bankrupt is the most appropriate thing.
Cheers!

tigerfeet2006

Thanks for the update Poppy. At least he can now move forward. If there are any questions he has then don't hesitate to ask, there's usually someone around who can help.