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  • FIRST POST
    • debtfreehusky
    • By debtfreehusky 6th Jul 18, 1:21 PM
    • 9Posts
    • 0Thanks
    debtfreehusky
    Wifes IVA failing, what now?
    • #1
    • 6th Jul 18, 1:21 PM
    Wifes IVA failing, what now? 6th Jul 18 at 1:21 PM
    Hi all,

    Long story short my wife has just had confirmation email from Payplan saying that they are failing her IVA due to non compliance. From what she's telling me, she has had load's of issues over the past year trying to contact them, update details etc etc and a 9 month payment break turned into 13 months etc.

    She is adamant that she does not care if it fails as she said the way she feels she has been treated has put her off, dealing with Payplan in any form in the future.

    They haven't given a date for the failure, just saying it will fail and they will let us know when it does. When this happens what would you suggest would be the best course of action for us? CAB? Step Change?

    I want to try and help any way I can, she suffers from M.E so often gets bouts of "brain fog" and just generally burying her head in the sand due to not being able to cope.

    What would you recommend? Any advice?

    If you need any more info please ask away.
Page 1
  • National Debtline
    • #2
    • 6th Jul 18, 3:33 PM
    • #2
    • 6th Jul 18, 3:33 PM
    Hi there,


    When an IVA fails there is an initial issue that either the creditors or IVA company can petition for the individuals bankruptcy. This is only really an issue if your wife has assets, such as a vehicle or is named on a property. If there are no assets, then the risk of bankruptcy does significantly decrease (because there is nothing to be gained for the creditors by going down this road), but if your wife does have assets she will need more advice ASAP. Trying one of the free debt advice charities is a great place to start.


    If there is no bankruptcy, then she will need to re-evaluate her options based on her debt level and surplus. That could mean negotiating herself, using a free DMP or making herself bankrupt. It is difficult to recommend any debt option without knowing some more of the details - would you be able to post a SOA?


    Laura
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • debtfreehusky
    • By debtfreehusky 6th Jul 18, 4:02 PM
    • 9 Posts
    • 0 Thanks
    debtfreehusky
    • #3
    • 6th Jul 18, 4:02 PM
    • #3
    • 6th Jul 18, 4:02 PM
    Hi thanks for the reply.

    Sure I'll post the SOA below, I had already posted it in my diary on the forums as I was in the process of reducing our outgoings before this happened anyway.

    So far I have gotten our tv and internet down to half what it originally was, now I'm trying to work on the mobiles I got for myself and my daughters, but so far they are not being very helpful. All the unsecured debts listed are mine and not my wifes.

    In terms of assets we don't really have any, just a car which I use for work. There is a small surplus, and I am actively trying to make that surplus bigger but all I can do is try my best.

    Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 2
    Number of children in household......... 3
    Number of cars owned.................... 1

    Monthly Income Details

    Monthly income after tax................ 1500
    Partners monthly income after tax....... 992
    Benefits................................ 368
    Other income............................ 0
    Total monthly income.................... 2860


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 660
    Management charge (leasehold property).. 0
    Council tax............................. 190
    Electricity............................. 70
    Gas..................................... 60
    Oil..................................... 0
    Water rates............................. 30
    Telephone (land line)................... 18.99
    Mobile phone............................ 172
    TV Licence.............................. 12.5
    Satellite/Cable TV...................... 20
    Internet Services....................... 15
    Groceries etc. ......................... 590
    Clothing................................ 82
    Petrol/diesel........................... 200
    Road tax................................ 16.62
    Car Insurance........................... 65
    Car maintenance (including MOT)......... 30
    Car parking............................. 0
    Other travel............................ 20
    Childcare/nursery....................... 0
    Other child related expenses............ 34
    Medical (prescriptions, dentist etc).... 35
    Pet insurance/vet bills................. 34
    Buildings insurance..................... 0
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 30
    Haircuts................................ 34
    Entertainment........................... 70
    Holiday................................. 0
    Emergency fund.......................... 50
    Council Tax Arrears..................... 140
    Total monthly expenses.................. 2679.11



    Assets

    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 1500
    Other assets............................ 0
    Total Assets............................ 1500


    No Secured nor Hire Purchase Debts


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    CC 1...........................200.......10........39 .4
    CC 2...........................200.......10........39 .4
    JD Williams....................1000......40........0
    Total unsecured debts..........1400......60........-



    Monthly Budget Summary

    Total monthly income.................... 2,860
    Expenses (including HP & secured debts). 2,679.11
    Available for debt repayments........... 180.89
    Monthly UNsecured debt repayments....... 60
    Amount left after debt repayments....... 120.89


    Personal Balance Sheet Summary
    Total assets (things you own)........... 1,500
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -1,400
    Net Assets.............................. 100



    If you need anything else just holla !
  • National Debtline
    • #4
    • 6th Jul 18, 4:28 PM
    • #4
    • 6th Jul 18, 4:28 PM
    Hello again,


    Some notes below in red to try and help you


    Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 2
    Number of children in household......... 3
    Number of cars owned.................... 1

    Monthly Income Details

    Monthly income after tax................ 1500
    Partners monthly income after tax....... 992
    Benefits................................ 368
    Other income............................ 0
    Total monthly income.................... 2860


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 660
    Management charge (leasehold property).. 0
    Council tax............................. 190
    Electricity............................. 70 - try and shop around for cheaper suppliers/ tariffs
    Gas..................................... 60 - as above
    Oil..................................... 0
    Water rates............................. 30
    Telephone (land line)................... 18.99
    Mobile phone............................ 172 - keep trying to bring this down.
    TV Licence.............................. 12.5
    Satellite/Cable TV...................... 20
    Internet Services....................... 15
    Groceries etc. ......................... 590
    Clothing................................ 82
    Petrol/diesel........................... 200
    Road tax................................ 16.62
    Car Insurance........................... 65
    Car maintenance (including MOT)......... 30
    Car parking............................. 0
    Other travel............................ 20
    Childcare/nursery....................... 0
    Other child related expenses............ 34
    Medical (prescriptions, dentist etc).... 35
    Pet insurance/vet bills................. 34
    Buildings insurance..................... 0
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 30
    Haircuts................................ 34
    Entertainment........................... 70
    Holiday................................. 0
    Emergency fund.......................... 50
    Council Tax Arrears..................... 140 - this is a priority debt - not a living expense.

    Total monthly expenses.................. 2679.11


    Assets

    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 1500
    Other assets............................ 0
    Total Assets............................ 1500


    No Secured nor Hire Purchase Debts


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    CC 1...........................200.......10........39 .4
    CC 2...........................200.......10........39 .4
    JD Williams....................1000......40........0
    Total unsecured debts..........1400......60........-



    Monthly Budget Summary

    Total monthly income.................... 2,860
    Expenses (including HP & secured debts). 2,679.11
    Available for debt repayments........... 180.89
    Monthly UNsecured debt repayments....... 60
    Amount left after debt repayments....... 120.89


    Personal Balance Sheet Summary
    Total assets (things you own)........... 1,500
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -1,400
    Net Assets.............................. 100




    If you need anything else just holla !
    Originally posted by debtfreehusky

    Based on your budget you deal with your finances as a couple, so this may affect how you approach the debts collectively, but at the moment your partner would have approximately 120 to pay towards her debts, with the potential of further savings to be made - if you maintain your debts. Depending on her debt level, any of the options mentioned before could still be on the table.


    As there is only one car, of a reasonably low value, it is very unlikely they would petition for her bankruptcy. At this stage, whilst you are unsure what will happen next with your wife debs, you could save the 120 surplus to one side and/or overpay your debts to free up as much surplus as possible for the future.


    Laura
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
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