Author Topic: On the verge of going under...  (Read 1409 times)

Worried

  • *
  • Posts: 2
On the verge of going under...
« on: Mar 01, 2011, 06:31:49 PM »
Hi there,
This is my first post,so bear with me!


I sorted an IVA out a couple of months ago,the first payment of which is due in a few days. However, since signing the agreement,my income has plunged (I'm a sole trader,and have lost some regular work that I was counting on).


I find now that I'm not in a position to make even the first payment. I'm going to contact the IVA company tomorrow,but frankly,I'm worried to death.


What can I do?


I'm seriously considering bankruptcy at this stage...but I'm frightened of the consequences.


For example,I live with my son in privately rented accommodation...should I become bankrupt,I've read that landlord's have to be informed,and I'm scared that my son and I would be turfed out...can anyone advise on this?


Also,what payments would I have to make under a bankruptcy order? And would any of my sons belongings (laptop,etc) be taken away?


Any advice would be much appreciated!
   

shocksoc335

  • Sr. Member
  • ****
  • Posts: 86
Re: On the verge of going under...
« Reply #1 on: Mar 02, 2011, 07:36:13 AM »
Hi there

Unlikely the landlord will turf you out unless you have rent arrears or are in breach of the terms and conditions of the rental agreement, bankruptcy should only affect the property if it clearly stipulates it in the agreement.

As long as you can prove the lap top belongs to your son it should be unaffected plus it has to be valued above £1k usually to be classed as an asset.

An income payment Order may be issued which means if you have a disposable income above £20.00 ( new rules ) you may have to pay an amount back towards the bankruptcy each month for three years?

Shocksock335
Supporting 'Practical Debt Advice' by Elizabeth Mc

James Falla

  • Hero Member
  • *****
  • Posts: 655
Re: On the verge of going under...
« Reply #2 on: Mar 03, 2011, 02:51:51 PM »
Hello Worried
 
Sorry to hear that your circumstances have changed and the IVA is no longer viable. Have you spoken to your IP? What did they say? It might be possible to get an immediate payment break and start your IVA in say three months. However, if you feel your income is really not going to improve again in the short term, bankruptcy is a good alternative option.
 
As Shocksoc has said, you should not have any problems with your landlord. How long have you been in the property already? If you have a good history of rent payments already then this will stand you in good stead. I would advise speaking to your landlord and explaining that you are considering bankrupty and how in fact this will make their rent payments more secure.
 
In terms of your household items, you will be able to keep these including the laptop. The official receiver is not interested in home computers. In terms of an income payment agreement, if you have any disposable income you may be asked to pay this. However, the advantage is that if your income falls again and you can no longer afford the payments, they will stop.
 
Let us know how you get on :)
Debt Expert & Author
beatmydebt.com