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ickleLB
Starting Member
4 Posts |
 Posted - 09 May 2009 : 19:45:40
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Hi
I am currently in an IVA have been since january - I am considering bankruptcy which was originally advised- My husband left me last year which did not help with the debt and the deb I have is above 60,000.
I live at home with my mum(my dad recently passed away unexpectandly)and have done since my husband left, my concern is mt car and my job, I am a store manager and i dont want to lose my job and my car is still on finance until june 2010. It is an 05 plate and I have owned it from the start. Any advice would be great?? |
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 09 May 2009 : 19:58:44
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Welcome to the forum.
You job will be fine if you declare BR but the car may be a different matter. The finance would need to be declared as a secured loan and the car would be picked up by the finance company once you are declared BR.
It normally takes 3 missed payments for an IVA to fail and then may take a little longer for the BR hearing so you may be able to get a bit of money together to buy another car in that time. |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 09 May 2009 : 20:25:27
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Hi
It is definately worth checking your employment contract regarding bankruptcy just in case there is a clause that needs to be dealt with. On a legal side there is nothing from stopping you working in your industry while br.
If you are considering bankruptcy then you would be able to retain a car worth around £2000 or less while br, provided you needed the car to get to work etc. I would expect it relatively straightforward for you to justify the requirement for a car.
What may be an issue is the continuing payment of an HP contract while Br. Occasionally the Official Receiver will allow ( or not be unhappy with) this but it is usually because the vehicle is necessary for work. For example a car on finance used for taxi work.
the other issue you may have is that the finance company will no doubt have a Br clause in their contract and depending upon which finance company will depend upon what action they take.
Finally regarding the car you should also check to see what type of finance it is. If your contract is a FIXED SUM LOAN AGREEMENT it is likely that the car is not actually finance and the loan is a personal loan. This has two consequences.
1. The car is probably worth more than £2000 and if it was not on finance would be lost in Br
2. You would be able to downgrade the car yourself, in your own time before Br without causing anyone a problem. The surplus funds could also go towards your bankruptcy costs.
Last point regarding the IVA, you may decide it is useful to discuss the matter carefully with your IP, but you have already said that you were advised that Br was an option to begin with.
Now that you are ion an IVA there is a specific procedure to follow to conclude the IVA BEFORE you can petition for bankruptcy.
If you turn up at court and the iVA has not been concluded then you are likely to be sent away.
I would recommend you speak to your IP and then speak to an expert regarding the car, finance, and other steps to prepare for Br if that is the right solution for you.
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
http://www.revivauk.com
Real People ..... Real Debt Solutions
www.revivauk.com |
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ickleLB
Starting Member
4 Posts |
Posted - 09 May 2009 : 20:37:07
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thank you for that pretty much what i guessed i just dunno wat to do for the best
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 09 May 2009 : 21:15:40
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I would recommend you actually speak to someone and have a discussion about the situation.
An independent third party will be best so you can be completely open without worry or concern.
You may be better in staying in the iVA, possibly at a reduced monthly amount, or bankruptcy or other but it would be good to have that chat.
The forum experts here are able to have impartial discussions for free should you decide that is what you need. You might sleep better one you make the call.
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
http://www.revivauk.com
Real People ..... Real Debt Solutions
www.revivauk.com |
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ickleLB
Starting Member
4 Posts |
Posted - 15 May 2009 : 22:00:55
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yeah i think i might have to speak to somebody
My Iva is f or 6 yrs because of the debt so am thinking bankruptcy may be worth looking into
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HiI am currently in an IVA
