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Partner considering bankruptcy(9 Posts)
My partner has debts and had a IVA but its failed due to health issues meaning he couldn't work.
He owes approx £30k he's just got a new job very good but only a 6month contact. We're due to get married but I want this sorted first.
He's considering bankruptcy but not sure it will be possible because he will have a good income even tho its only for 6months.
Is it better to try and get another IVA and accept that a lot of our money will be gone each month for repayments?
I'd prefer bankruptcy for a clean slate
Take some advice on this, probably from a solicitor or accountant.
If an IVA has failed, the creditors might not be willing to accept another one. However, you might be able to come to individual arrangements with with different creditors.
Bankruptcy has changed hugely in the last 20 years and isn't as onerous as it used to be, however it's not to be entered into lightly as the long term ramifications not just for credit but also future employment, or even self employment, can be huge.
Like I said, you need individual advice on this before entering into it.
What did he agree with his IVA when he couldn't pay it, payment break?, extended term? . As far as I'm aware (I could well be wrong) it's not like one of the debts you can't just not pay it. If he's not been paying it his creditors may well make him bankrupt. You need to find out what he has agreed in terms of his IVA payments wirh the company who set it up for him. If you want some independent advice contact Stepchange or national debt line or visit money saving expert website on the debt section forum.
I mean a bit worried about your comment "a lot of our money will be gone".
I do hope you're not paying tuwards his IVA especially if he ends up bankrupt anyway?
What are the terms of his IVA? It’s fairly standard for the supervisor to have a provision to petition for bankruptcy if 3 payments are missed. If there isn’t enough money on the client account it’s possible the supervisor won’t do this as IPs don’t like being out of pocket. His creditors won’t be likely to make him bankrupt unless they’re trade creditors as most of them just don’t bother.
His income won’t affect his ability to petition for his own bankruptcy. It will be taken into account for an income payments order/agreement but this will be varied with any changes in income (which he must inform the trustee of). These can last up to 36 months, so involve significantly less outlay than an IVA might and your income won’t really be taken into account, beyond apportioning you your share of household bills. The payments are calculated on a case by case basis using his income and reasonable expenditure so take his circumstances into account.
Unless he has assets then an IVA is unnecessary and bankruptcy is a better option. Why did he opt for this in the first place instead of bankruptcy?
sorry for late reply.
No i'm not paying towards his IVA at all what I meant by 'our' money was that when we get married once this is sorted the monthly payments will come out of our joint budget. I only work PT
I don know the terms and neither does he, he's been battling some hard MH whilst all this is going on. We have tried to contact the company he used but they are not great and don't do what they say they will. We have asked again for his file and are waiting for it so we can see where he stands and get advice.
In the first place I think he had a good job so could pay a IVA he was single and had the money to pay it. Now the debts will be hirer etc.
He hasn't heard that he's been made bankrupt and we have been trying to resolve this for a few months so its been a while since a proper payment on the IVA was made.
I think Bankruptcy and thats his preferred choice too. My concern is the monthly payments after will be higher than a IVA and leave us with not much as its only for 'essentials' he's just got a really well paid job and working very hard will be sad to see it all go each month. I do understand he has to pay etc and not trying to get out of it just wondering if a IVA if possible would be better as payments spread over 6 years but can be lower?!
Can I suggest ringing StepChange. My partner is in an IVA and we have found their advice brilliant. And its free.
I agree with girl - 1st priority today contact Stepchange. Just look them up on internet. A friend of mine used them and from what he said they were brilliant. He was really struggling. To be honest OP you sound very confused. As far as I am aware (please others tell me if I'm wrong) but once in an IVA his debts cannot increase unless he has got more debt... that's the whole point of the IVA. The set amount is agreed at the start. The payments stay roughly the same unless his income increases by X amount per year. Also I didnt think it possible to miss IVA payments without agreement from the advisor. I'm sure Step change will be able to help.
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