A Free Bankruptcy, IVA And Simple IVA, Insolvency Advice Forum

[getmeouttahere]

My partner and I have been in an IVA since May 07. We currently pay £921.00 per month on a £108,000 debt.

We are really struggling to pay and have only managed to do so this far because family have helped us out.

The help has now stopped and we are living on £50pw for 4 of us, thats for food, fuel and dinner money etc.

we have decided that as we have no assets at all we would be better off going bankrupt.

This month I have changed the standing order to pay DFD half of the payment due as I need additional funds to pay for childcare during holidays and thats the only way I can do it.

What is the best way forward to we inform DFD that we wish to go bankrupt and stop the payments? or do we continue paying something and wait for DFD to bankrupt us?

When we finally go bankrupt, will we be able to use the money that we would normally be paying DFD to live on or will this be taken off us by creditors or bankruptcy officer?

Thanks

[Hg]

Hello

DFD might bankrupt you and the terms of the agreement are that they probably should, but it can't be relied on. If you want to be bankrupt stop paying them and do it yourself.

When bankrupt you will pay some of the money that you paid DFD into the bankruptcy estate for 3 years. It won't be as much, as offering a higher percentage of your income is one of the things you have to do (as is paying for 5 years instead of 3) to get creditors to agree to an IVA instead of you going bankrupt .

[getmeouttahere]

Thanks for your response HG

We have decided thats it and we are going BR.

I paid half of our IVA payment this month but next month I am going to cancel it completely. They can do what they want to now, had enough.

Can I ask you another question. We currently have a current account with Alliance and Leicester with a debit card. This account pays our bills and our salary is paid in to it. We have no overdraft. Alliance is not one of our creditors.

Will this account be automatically frozen when we go BR? If so why?

If I open up another basic bank account now with Co op or Nationwide, when do I transfer over DD's and salary? Wont this new account just be frozen as well? in other words do I get the basic account up and going now and take everything out of the other, not that there is anything apart from bill money or do I wait till I go BR?

I have applied for a cash plus mastercard just in case and this has gone through ok.

Thanks for all your support

[postman pat]

hi i was on an iva and then went br ,best thing i did as it all made my health bad {deppression} as for your Alliance and Leicester account it will be closed once you go br ,i went with the cooperative bank and told them i was br and they still gave me an account with a debit card and can still pay bills and use internet banking direct debits
good luck
br is not as bad as some people make out