I am currently in an IVA at month 10. Whilst i still think its a very stretching one I accept my debt has to be repaid. However, after 6 months a larger creditor chased my wife for payment on a joint loan included in my iva which we thought was just in my name. As a result, my IVA firm applied to have my wife added which hs been rejected by the main creditor. They know we have no spare funds to repay the debt so I dont understand my next course of action as my wife is now exposed to a debt she has no way of repaying? Can anyone advise?
I was in an IVA for over a year when another creditor from the past came along and added themselves to it...extending it for another year. In the circumstances BR was better for me....it finally ends all previous debts and in my opinion is not a lot worse than an IVA.
I suggest you and your wife have a good chat with your insolvency practitioner who will be able to give you all your options as they know your details.
If you want to post a bit more info here, we'll try and help.
Thanks for the update. I have seriously considered BR as an option but do not wish to lose my home. I am not in negative equity but mortgage value is within 5k of house value.
you should discuss the matter with your IP in the first instance, however you ultimately need to do what is right for you both.
The value of your house taken by the Official Receiver is not the top market value, rather they look at it more realistically and would accept either a mortgage valuation ( from a RICS valuer ) which will be significantly less than the estate agent, or alternatively a 90 day valuation from an estate agent confirming the value for a forced sale.
You then also need to remember the costs of sale - legals & estate agents. so you may be negative already.
If you went Br yourself you still need to decide on what happens to the joint debt - currently pursuing your wife.
You also need to reflect on the probability of an Income Payment Agreement - this is where a percentage of the disposable income is paid for 3 years. However it is a percentage and not all of your disposable income.
speak to your IP first and perhaps you yould get a different slant on all your options from one of the site experts.
Paul
Paul Johns Bankruptcy Specialists Reviva UK www.revivauk.com 08454 751 851
Paul, Thanks for the advice, its most appreciated. I have found this whole process annoyingly frustrating as its taken so long. I used a reputable company and paid a fee. It took 3 months to get started so instantly fell 3 months in arrears with everyone. I have had every ounce of disposable income accounted for and am left with less than £80 month for a family of 5 as contingency (not sure if this is small or large) for 6 years (after being assured its for 5). I am now being told to cancel my IVA and take a new one out in joint names which will then start again from scratch and last another 6 years. When I asked about what I have paid in for nearly a year I was told it gets shared out to creditors but wont count towards new one?? Given this is now a mess I am concerned I am on an interest only mortgage and cant renew for at least 6 - 7 yrs coz of credit rating. I really dont no which way to turn as whilst I am not expecting to live like a lord I feel this small amount per month is too little to act as a contingency for 6 years or am i being unreasonable? I dont want to enter into something if i am over stretching myself but my ip has said i have no choice.
my wife now exposed to debt with no way of repaying
Posted - 21 September 2010 : 22:50:06
