Author Topic: Failed IVA now what do i do?  (Read 5471 times)

xstacie-mariex

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Failed IVA now what do i do?
« on: Aug 19, 2009, 02:24:12 PM »
I started an IVA over 2 years ago but in Dec 2007 my wife had our first baby and went from earning 1000 take home to 400 maternity. We carried on making our agreed IVA payments but began to struggle and asked for a reduction.
It took from June 2008 till now for them to reach an outcome all the while we were paying what we could afford 100-150 a month when payments should have been 300. Also we have had another child June this year so money has got even tighter.
Basically our IVA has failed and we have been served our breach of contract meaning the IVA is no more as the money we were trying to pay wasn't enough!
They people at the IVA company said my Creditors aren't going to make me bankcrupt but have suggested i make myself bankcrupt as i still owe after 18000 after the 2 years IVA contributions have been deducted.
I am not sure what to do?!
I know they would inform my employer of my bankruptcy so could i lose my job? I work in a electrical factory, nothing linked with finances.
I'm in local authority housing, and the only things we own are our two cars. One is worth less than £400 which i use to get to work as there are no public transport links. Our other car in worth £2000 which my wife uses to get to and from college and dropping and collecting the kids from playgroup. Could they take these?
We have Sky and a house phone, also the internet (could they sell our computer as my wife does her coursework on it)?
Also would they close our bank account even though we only have a simple step account (no overdraft or even a debit card) but i do need it as i pay all my bills direct debit, does anyone know whats happens there|?
I have booked an advice meeting with Citizens Advice but thats not till 16th of next month and i would like a little heads up or direction before then so i don't go stir crazy!
 Any help would be greatly appreciated.

bankruptcy.co.uk

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Re: Failed IVA now what do i do?
« Reply #1 on: Oct 05, 2009, 12:09:49 PM »
1) You currently owe £18,000.
2) You are an electrical factory worker. Your job is not effected by bankruptcy.
3) You have a disposable income of between £100-£150 a month (as this is what you could afford to pay your IVA company).
4) You are in LA housing (therefore not a homeowner)
5) Your car is worth £2000 - this would survive a bankruptcy IF you use it for work.
6) Section 283.2 of the Insolvency act states "Exempt property does not form part of the bankrupt's estate. It includes such tools, books, vehicles and other items of equipment, as are necessary for the bankrupt to continue his employment, business or vocation and such clothing, bedding, furniture, household equipment and provisions as he needs to satisfy the basic dometic needs of himself and his family. (NO BAILIFF ENTERS YOUR HOME!!! :) )
7) Bankruptcy is obviously the best option for you.
Raphael Gilbert
Head of Insolvency Divison www.ban

xstacie-mariex

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Re: Failed IVA now what do i do?
« Reply #2 on: Oct 29, 2009, 01:50:18 PM »
Thank you. We had a delayed meeting with the CAB yesterday and i think we'll be going down that route. Its weird because i know being bankrupt is serious but i actually feel relieved!  :D