Scared, could REALLY do with some advice PLEASE

[scared_iva]

OK where to freaking begin!!!

 

OK so I am in an IVA, almost 2years and 6 months through it. I pay it weekly because I get paid weekly. Its a little bit of a struggle to keep the payments (which I have done all the way through) but I am feeling it even more this Christmas with 2 kids now and I am literally on my arse. I have enough to pay the IVA everytime but its my car payments i am worried about.

 

Luckily my mother signed the car in her name and doesn't mind if I am a week behind payment sometimes, but I just feel so depressed that i do not have any money to go out etc

 

When I signed for an IVA it was after seeing it on TV and it sounded great. I personally think it was the wrong choice and rigfht now i am SERIOUSLY considering bankruptcy but I am just so damned scared to do it. I do not want people seeing my name in the papers for a start or people in my work knowing.

 

But I only owed out 18,000 pounds and I now pay back £280 a month which is £70 a week. I think its quite a lot over 5 years.

 

I dunno why i am on here just looking for advice I think, or words of encouragement because I am too scared to talk to ANYONE about my debt even my girlfriend who knows I am in an IVA but still thinks we are doing OK. Man I just feel like the whole world is caving in on me.

 

Because I cannot get credit, my mobile contract is in my missus name, my car is in my mothers name so i pay them rather than companies every month. I haven't given the IVA a 6 month bank statement or payslips for 2 years now because I dont like them digging through, because sometimes i do over time just to survive not for them to take it

 

I own no home and my car is on finance so they cant take anything right??

 

I am just too scared to go bankrupt a) because I am half way through the IVA and b) people finding out c) I dont know what bankruptcy is about really.

 

Can someone just try to put my mind at ease PLEASE - I know there are others worse off than me and ion worse situations and i am not begging for sympathy, just a push in the right way.

 

Whats really triggering this off is I get a lot of people ringing me saying the IVA sold me the IVA wrongly as i have no assets to protect and basically I am paying them for no reason and that bankruptcy is the way to go.

 

Any and all opinions will be read and received with thanks.

 

Thanks for reading guys.

[datcat]

1st things first If you have no assets then yes B/R is a option

But and it's a big but, It is a huge step to take.

 

National Debtline - Website: National Debtline Telephone: 0808 808 4000

Is your first step, keep your finger on the redial as they are very busy

or call Consumer Credit Counselling Service - Website: CCCS Telephone: 0800 138 1111

Again very busy.

Then can I recommend this site and this forum

 

Bankruptcy & Living With It - MoneySavingExpert.com Forums

 

Any questions you have there will be someone with a answer and they don't bite.

[loobyloo85]

Hi

 

First of all, you are really not alone - there are so many people either in the same situation or worse than you. Please try not to worry.

With you being in an IVA, you can choose to go bankrupt, but you must inform your supervisor of this first before proceeding.

Bankruptcy is a good option to some people, but the IVA is an alternative to bankruptcy where you would not have any stigma attached, your employment and all assets would be safe. With regards to your car, as this finance is in your mums name, they would not be able to take the car unless you missed payments on this. In bankruptcy, people are more likely to find out about this compared to in the IVA, as it is registered on the government register, and if you decide to get mortgages etc in the future, they will be able to see that you have been bankrupt, and this can affect thigns for you. If you are 2 years into your IVA, and feel able to continue making the monthly payments, I would suggest you hold in there. In 3 years time, your debt will be written off, and your credit rating will be wiped clean a year later, and all assets will be safe.

Also bankruptcy does take 12 months, but it can also take a further 3 years before you are discharged, as they can require for you to make monthly pyments for 3 years.

I hope this helps x

[debtinfo]

it does not take a further three years to be discharged, you are discharged in a year sometimes sooner. You may have to pay some money for 3 years (in fact it is likely because you are in an IVA and so must have some surplus).

 

I dont advise people what to do, you have to choose yourself and be happy with the choice.

 

to answer some of your specific questions about bankruptcy. Most bankruptcies are no longer put in a local paper. They do go in the london gazette which is mainly for the use of companies. It is also put on the insolvency register whch is online and open to besearched by the public if they knw where to find it. BTW IVAs are on the same register and so there is an equal chance of someone finding out about bankruptcy or an IVA.

 

The other thing you mentioned is about work. THe OR will not inform your work as a matter of course BUT they may if they have a valid reason for doing so.

 

feel free to ask any more question, but remember you have to make the decision yourself

[scared_iva]

Thanks guys.

 

I am gonna give those numbers a ring now as soon as I finished posting this.

 

I don't care if my bankruptcy is in London, just not in my local paper lol. Really would be so embarrassed if people knew I went bankrupt.

 

But to ask a more direct question, basically because I am in an IVA now, the official receiver would basically tell me I have to pay for the next 3 years? because if that is the case, I only have 2 and a half years in the IVA although it is strenuous on me and my family we are always looking 2 and a hal;f years down the line where we get that extra £280 a month back.

 

I am not fussed about credit, because I can always get my missus or mam (bless them lol) to get a car/mobile etc for me. I wont ever get a loan or credit card EVER AGAIN!! So no worries there.

 

But I also have a overdraft now that Natwest gave me and this breaks the terms of the IVA and this is why I do not send them my 6 moth review. I am scared they will make me bankrupt themselves, although others tell me they wont because I have no assets so I don't know.

 

I am more confused and worrying than scared I guess. I just wish I could just go into bankrupt, not have to pay anything at all and no-one who knows me or I work with find out.

 

I work for the Royal Mail which is kind of like the queens business or something?? Is there a way I could find out all this information 1st before signing up for a bankrupt?

 

I know no-one can MAKE my decision for me, but I would like to know what you guys would do IF you were in my position if possible.

 

Thanks for ALL the replies guys, really helps knowing I am not alone.

[debtinfo]

Hi, i should have been a bit clearer, the OR can ask for payments for up to 3 years, this will not nessesarily be the same amount, in my experience these payments are usually lower than you would pay into an IPA but this is not guaranteed

[scared_iva]

Is there anyway I could find this out mate? Tried for ages yesterday to contact debtlines and always engaged. currently trying now. Basically if I can find out if I will have tio pay for 3 years (even though it might be less than what i pay now like you said) then its worth me sticking out the IVA,

 

The main thing I am scared about is that i do not give the IVA my bank statements or payslips every 6 month review, and this breaks their terms and I am guessing they can make me bankrupt over it. See because I work overtime sometimes just to survive and i don't want them taking anymore at all off me. So then I have a feeling that i could stick the IVA out until 4 years or whatever by ignoring them which i have done for 2 and a half years and then they might make me bankrupt, meaning i stuck with it for 4 years for nothing.

 

Basically would they see it as - well he's in an IVA so must have surplus cash so we'll make him pay for 3 years.

 

Also you know when people go bankrupt and don't have it over 3 years do you still have to pay anything to them within the 1st year or up til your discharged or are you completely debt free?

 

See basically credit is nothing to me (yet anyway) as if I need a mobile/car etc i will get them through my parent/missus as I am doing now. I have no assets so I kind of see it as heck why am I bothering with this IVA with the risk of them making me bankrupt after 4.5 years or something.

 

Then another part of me says, just stick it out, half way through, pray to god they don't make me bankrupt and I can see the light at the end of the tunnel so to speak lol.

 

Is it common for IVA to make people bankrupt who don't provide the 6 month reviews?? My IVA is with freeman and jones if that makes any difference.

 

Thanks again all for the helpful comments.

[loobyloo85]

If you do not make any contact or send in the required information for your IVA review, and miss 3 or more payments, your IVA would fail. It is then down to the creditors whether they make you bankrupt, but they would look into whether it is worth their while making you bankrupt.

The income payment order that the OR would ask you to pay into is, if you show from your icnome and exp that you have surplus, and if your job is not going to be affected by bankruptcy.

If the bankruptcy is 12 months, you do not have to make monthly payments for those 12 months. You do not pay anything, and your debt is written off.

With you being so far into your IVA, what is it that makes you think they will make you bankrupt after 4.5 years? This is not true, and if you have no assets, it is unlikely the creditors would make you bankrupt as they would not get anything from you.

[scared_iva]

Well I mainly think they will make me bankrupt at the end because I dont plan in having any contact with them now until its over. I ignore all the letters they send me etc, I have an overdraft on my natwest account (which apparantley I am not allowed) I maybe am panicking. But they already made their money, so its nothing to them I guess to me me bankrupt?

 

I have 2 nd half years left, and I fear if I dont send them a 6 month review sooner or later they will get fed up and bankrupt me themselves.

 

Will/could this happen?

 

Also I never missed any payments and I wont do so either. They come out on payday so its easy for me.

[scared_iva]

anyone?

[sequenci]

Hi there.

 

It is tremendously unlikely that any of your creditors will make you bankrupt. The reason being is that it is an expensive process and you have no assets so there is no guarantee that they would get a return on doing so. If a creditor was to bring action against you it will be via the the county court judgment route.

 

Hope this helps.

[loobyloo85]

I agree with Sequenci, it does cost the creditors a lot of money to make someone bankrupt, and if you have no assets, it would not benefit them by doing this in anyway. If you dont send your IVA company the 6th month review they may look into failing your IVA, but ultimately you have to miss 3 months worth of payments before they can do this, but if you are not cooperating or responding to them, they may choose to fail it. Do you really have much to lose in continuging with your IVA for another couple of years? This will mean that you will be debt free at the end with no stigma of bankruptcy x

[Jane1960]

Hi To all,I had to go Bankrupt in November Unfortunately,long story,wont bore you all with it,But my advice for what it is worth is Go to your local Citizens Advice,Before you do anything else,They helped me enormously & all for free,Along with all on here who gave me advice,without You guys & their support i would not have got through it,If i can be of any help i am more than happy to x

[spamheed]

I too have been looking at following this route and I find it hard to believe that they are insisting on so high a payment, £280 a month for 5 years comes to pretty much the whole amount owed without interest, so in this case it looks as if your needs weren't really considered as a priority.

 

The question of whether to go bankrupt is one nobody else can make and it would be wrong of them to do so, only you can do this, but before you do plerase ensure you get as much info and 1st hand opinion as you can so as to make an informed decision.

 

As previously stated, none of your creditors will make you bankrupt because a. it will cost them money with no guarantee of return and b. they already have you on the hook.

 

They know you have a surplus and indeed they know pretty much what that surplus is.

 

If you go BR the OR will normally assess your families living requirements based on your income and expenditure and normally everything above £100 would be halved (this is a rule of thumb and not an exact figure) they would then take this figure for up to 3 years.

 

Whichever way you decide to go - Good Luck

[Jane1960]

I have just had my assessment & from 15 Jan 2010 until Dec 2012 i will be making monthly payments of £75,they have based this upon disposable income of £150,I have this infront of me From The OR Solicitors,I feel so much better that i am making some kind of contribution as my intention was never to evade responsibility,Just unfortunate that i was left in this situation without any other alternative,There is hope & Help out there,Just be totally honest & upfront,Truly it is the best policyx

[debtinfo]

Truly nice to here that Jane, i see so many posts about people indignant that they have to pay anything back, its nice to see someone who wants to pay as much as they can