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  • FIRST POST
    • Starry-eyed
    • By Starry-eyed 12th Jun 17, 11:09 PM
    • 21Posts
    • 8Thanks
    Starry-eyed
    IVA Advice
    • #1
    • 12th Jun 17, 11:09 PM
    IVA Advice 12th Jun 17 at 11:09 PM
    Hi

    I signed up for an IVA which was agreed 5th May and I have made my first payment. However, since then my ex has lost his job and now I am £300 down a month, and my IVA payments are £235. I'm stressing so much about this :-(

    Originally I was advised that payments would be over 5 years, and £150 a month. After the creditors meeting, it was upped to 6 years and £235 a month, of which I agreed as I didn't see another way out. I had to ask of how much exactly was I paying back to my creditors and was told I was paying back 91%.

    I've decided a better route for me, now with the uncertainty of when my ex will get a job and right now I just cannot afford the payments, to end my IVA and file for bankruptcy. I have no assets, and don't own my own home.

    My questions are:
    1. Can I cancel my IVA so soon into the IVA?
    2. Can my IP refuse?
    3. Will there be a fee to pay to cancel as I have only paid one payment?
    4. How soon can I file for bankruptcy?

    I've messaged my IP but am awaiting a reply.

    Many thanks for your help!
Page 1
    • fatbelly
    • By fatbelly 13th Jun 17, 12:17 AM
    • 11,057 Posts
    • 8,248 Thanks
    fatbelly
    • #2
    • 13th Jun 17, 12:17 AM
    • #2
    • 13th Jun 17, 12:17 AM
    You can stop paying. It may be some time before your IVA is terminated.

    You can only have one form of insolvency at any time.
  • National Debtline
    • #3
    • 13th Jun 17, 1:58 PM
    • #3
    • 13th Jun 17, 1:58 PM
    Hi starry-eyed,


    Your IVA will need to fail before you can file for bankruptcy and I am afraid that is likely to take a bit of time, especially because the IVA is so new. Check the terms and conditions of the IVA, they may offer/ give you a payment break for months before they fail it and this would delay you potentially filing for bankruptcy.

    It is also important to get full, free advice about bankruptcy before going down that route. Something may have already put you off this option, which is why you did the IVA, so be mindful that there are pitfalls in bankruptcy too. You may be able to salvage the IVA if they are willing to vary the payments, so do a new SOA and check your IVA contract before doing anything else.

    Laura
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • Starry-eyed
    • By Starry-eyed 13th Jun 17, 3:16 PM
    • 21 Posts
    • 8 Thanks
    Starry-eyed
    • #4
    • 13th Jun 17, 3:16 PM
    Iva
    • #4
    • 13th Jun 17, 3:16 PM
    Hi Laura

    Thanks for your advice, which I appreciate :-)

    Unfortunately I am wanting to cancel my IVA and apply for bankruptcy due to the fact that my ex-partner has lost his job and is currently unable to work due to illness. This has meant that I am now £300 down a month and have no idea when this will change. This is a lot of money for me and it means I can no longer afford the monthly payment of £235.

    I therefore feel that this leaves me no option at all other than to fail the IVA, and go bankrupt.

    So I guess it's a waiting game until my IVA fails officially.
    • fatbelly
    • By fatbelly 13th Jun 17, 5:52 PM
    • 11,057 Posts
    • 8,248 Thanks
    fatbelly
    • #5
    • 13th Jun 17, 5:52 PM
    • #5
    • 13th Jun 17, 5:52 PM
    You may wish to hop over to the bankruptcy board for the fine detail.

    The good news is that while you are still officially on the IVA, though not making payments, you are still protected from enforcement action by your creditors.
    • Johnsmith2016
    • By Johnsmith2016 18th Jun 17, 7:11 AM
    • 431 Posts
    • 221 Thanks
    Johnsmith2016
    • #6
    • 18th Jun 17, 7:11 AM
    • #6
    • 18th Jun 17, 7:11 AM
    Did you take advice as to an IVA being our best option and was it?

    Don't pay, wait to fail and go bankcrupt if you have nothing to protect and substantial debts that will take over 5yr to repay. In my opinion.
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