IVA FAILURE / Bankruptcy AND CHILDS SAVINGS

[Shell001]

Hi,

Im currently in an IVA agreement with my creditors and i owe a large amount of money and as ive had a baby things have changed and money is even less so i think i may have to go down the route of Bankruptcy.

Anyone else done this ?

Also worrying about the effect on my childs savings account as im named on there ? would the courts take this money ?

Any help advise needed

Thanks

hi

i was made bankrupt after a failed IVA. i dont think they can touch your childs savings. i dont really know to be sure though as our children didnt have any.

make sure you ring the place you have the IVA with as they will take into consideration your new arrival and adjust your repayments accordingly to an amount you can realistically. the purpose of an IVA is for you to pay what you can afford, and allow you enough money for living expenses including food, medication clothes and travel etc.

I have quite a large amount which my agreement had been set up a to pay back £275.00 for 5 years ive had a year off with maternity leave and have not have to pay anything until returning back to work which is in a month .. they said my payment could go down to £190 a month for 10 years but anything less my creditors will fail my IVA.

There is no chance of finding £190 a month so Bankrupty is the only route ?

Did the whole experience of going bankrupt change anything in your life i mean does it effect you as they say they go through paperwork and assets ?

we had £30,000 of debt. we paid £175 a month. it only failed because dh was made redundant.

tbh, after all the hassle, bankruptcy was almost a relief! you can only have a basic bank account after though with no debit card, but tbh, its made us manage money a hell of a lot better. i have got a prepay debit card not which you have to top up before you use it. yes there is a charge for using it but if its necessary ie, internet grocery shopping etc then i dont mind. no we can't get credit, but it doesnt bother me. our debts werent from overspending anyway, but from using cards and loans to live when dh was ill and couldnt work.

double check about the iva for 10 years as i was under the impression that legally they could only last for 5 years regardless!

we made ourselves bankrupt. had to pay (stupid eh?!) but we were in court all of 5 minutes. the judge saw we had no chance of paying it and just stamped it and then sent the paperwork on. not had any hassle since. big weight off our shoulders. yes it is emotional at the time, there is such a stigmas attached to bankruptcy, and it makes you feel a failure, but you have a baby to look after now (i was heavily pg with our 3rd dc when i was in court!) and you have to consider that.

Hello, I dont have any advice for you, but wanted to help as we are in debt also.
This website here explains a little more on bancruptcy.
And this one is a good one about IVA's and how to aviod bancruptcy.
Moneymagpie.com is a very good website, as is moneysavingexpert.com, and should give you some good advice.
Good luck.

Thanks to you both for advise ..

I only have the debt in my name and now live with partner so feel so bad now with a family i dont want to ruin it for anyone else ..

I ve read a few sites and you read so many different things like the court taking assets and gifts of value
but i have nothing in my name only a basic cash card ..

I ve learnt my lesson with IVA and now to go through this is abit worrying again but i hope mine will run as yours angelwithin.

Unless the money is in a trust fund that nobody can touch then yes, its likely they will treat as your money - otherwise people would simply move anything they had into a childs account.

no, they will look into how the money got into the child's savings account and where it came from etc, and decide whether they believe it is really your DC's or whether as HappyMummy says it was put there to try to avoid the creditors.

if they conclude it is really your DCs, then you do not own it and they won't take it.

I went bankrupt 2 years ago, they didn't touch my childrens savings, but I didnt tell them I had them, the bank froze my accounts but not the childrens. Large sums of money didnt go from my account to the childrens I think they look at this. The children still have the accounts. They can also see that its birthday money, and various small amounts going in

Thanks i am abit worried about the whole savings account as i transfer alot online but its small amounts that is my sons money but i think for peace of mind i ll change it to my DP name.
shineyshoes - did they go into everything ? or just what your told them ?

shell, it could look suspicious to put it into DP's name.

True .. But dont want them taking his savings ..!

what I mean is, there could be more risk of them being taken if you now try to put them somewhere else (ie into DP's name) - it looks as though you are hiding something that way!

you could try ringing one of the debt helplines and see what they say about children's savings accounts

Yeah im going to check it out i think .. thanks for advise .. playing on my mind just need to sort this ..