IVA and 2 credit cards
Comments
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ToxtethO'Grady wrote: »Shows how responsible lending is a cornerstone of Vanquis policies, when your details would show on the Insolvency Register for your IVA!
Disagree slightly - they are good provider for building your history back up - i got my vanquis within 18 months of the start of my IVA. I however didnt overspend and used it for the purpose of rebuilding, like they designed to do0 -
It looks like my best course of action then is to stop paying my IVA and my credit cards and save up to apply for bankruptcy. Do I inform my IP (Aperture) that I want to stop my IVA or should I just stop payments and if I go this route, will I owe Aperture any money?
Also do I inform Vanquis that I intend to file for bankruptcy and can no longer pay them or does all of this have to be done through an insolvency practitioner?0 -
It looks like my best course of action then is to stop paying my IVA and my credit cards and save up to apply for bankruptcy. Do I inform my IP (Aperture) that I want to stop my IVA or should I just stop payments and if I go this route, will I owe Aperture any money?
Also do I inform Vanquis that I intend to file for bankruptcy and can no longer pay them or does all of this have to be done through an insolvency practitioner?
Hi,
I would just stop paying, nothing will happen quickly, you can write and explain the situation as and when you see fit to do so.
Aperture take their fee from your payments, it could be at some point fee`s may be owing, but if your going bankrupt, that may take care of them.
Again with vanquis, nothing happens quickly, in the time it takes you to save the fee the card account will likely still be with collections.
You can apply for bankruptcy online only, here :
https://www.gov.uk/apply-for-bankruptcyI’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
I have been researching bankruptcy on the Citizens Advice website and it seems a scary option to me.
What will happen if I carry on scraping by to pay the IVA and ask Vanquis for some time to see if my situation improves or pay them back when my IVA ends and give them a token payment in the meantime?
When I check my Vanquis statements, I have paid at least two thirds of what I have borrowed already. Would they settle for getting the rest of their original money back in time rather than not at all?0 -
the longer you wait, the longer it will take to be discharged and cleared from bankruptcy
sorry to say, but dont try to delay the inevitable, unless you have more work hours/pay increase guaranteed income on the horizon0 -
I have been researching bankruptcy on the Citizens Advice website and it seems a scary option to me.
What will happen if I carry on scraping by to pay the IVA and ask Vanquis for some time to see if my situation improves or pay them back when my IVA ends and give them a token payment in the meantime?
When I check my Vanquis statements, I have paid at least two thirds of what I have borrowed already. Would they settle for getting the rest of their original money back in time rather than not at all?
It is an option, but as you are struggling already, it would not be sustainable, bankruptcy is not much different to your IVA, just a different procedure to go through, and its pretty much guaranteed, no what ifs or may be`s.
The only real difference is that your bank account may be frozen, so you may need to get another basic account, or keep plenty of cash available, and you have a telephone interview with the OR to discuss your budget (do it correctly this time) and potential IPA, that's it really, after 12 months your discharged, you may have to pay an IPA for up to 3 years (if you have more than £20 disposable income), your bankruptcy, as with your IVA, would be on the insolvency register for the duration, and on your credit file for 6 years.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
Won't Aperture make me bankrupt when they know about the credit cards? I've got a feeling they will.
The thing that worries me about bankruptcy is that it says that some landlords won't let you stay in rented property if you are made bankrupt. I don't know if this applies to a council house. I have been late with my rent and council tax regularly.
I'm not sure.
It looks like bankruptcy is my only option but will have to do.plenty of research first.0 -
Won't Aperture make me bankrupt when they know about the credit cards? I've got a feeling they will.
The thing that worries me about bankruptcy is that it says that some landlords won't let you stay in rented property if you are made bankrupt. I don't know if this applies to a council house. I have been late with my rent and council tax regularly.
I'm not sure.
It looks like bankruptcy is my only option but will have to do.plenty of research first.
I doubt they will want to fork out £680 to make you bankrupt and get nothing in return, what possible benefit would it bring them, you have no money or assets.
The fact you’ve been neglecting essential payments shows your current situation is untenable, this is designed to be a fresh start for those that need it.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
IP's very rarely pursue bankruptcy for failing their IVA. I'd imagine the only cases they would is if they knew there was significant assets which would repay creditors, and of course they can take fees from. Which isn't the case for you.
Yes you have breached your IVA for getting additional credit, but in all the different breaches that can occur this isn't a major one.
You can just stop making payments, ignore the phone calls, and then write to them to explain the situation and your intentions once you get your 3 months missed payments breach letter if you prefer.
I would recommend calling StepChange again and discussing bankruptcy, how it works, what it means for you etc. Be realistic with your budget for the I&E, the current one hasn't been sustainable so you must have been spending more on some items. I know you said it is due to a family situation that caused an emotional response but don't be afraid to say you need more on your budget. In bankruptcy having no disposable income left for a payment means you don't have a monthly payment to make, and if you do it will be for 3 years and needs to be affordable.0 -
I am researching bankruptcy at the moment. Its either that or try to hold off Vanquis while I pay the IVA off, then start paying Vanquis. If I go this route, Aperture may find out anyway.
My conscience is nagging me to phone Vanquis and try to come to an agreement to eventually pay them off as I took on the debt with its conditions in the first place. But the sound of a new start is very appealing although I would feel like a fraud.
Thank you for your advice. I will let you know which way I decide to go.0
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