Advice..

saintly_2

i currently live with my parents and knew they were in an IVA. However they have missed a couple of payments and I think its failed. They havent actually told me this but the way they are stressin over money at the moment im takin a stab in the dark

they have no clue about pc's so wont come on here and i know they are embarrassed about their debt so i wont speak to them about it.

just a question, what happens when an iva fails?? do they have to go bankrupt?? ive got all these scenarios in my head of whats going to happen and im getting myself worried.

thanks

thecableguy12

in most cases they should be made bankrupt and also in some cases funds are kept aside to fund the bankruptcy, depends on the company, where i worked the insolvency practioners never made them bankrupt instead advised they went on dmp plans and even in some cases let them re apply for an IVA 3-6 months later

AdamMerry

In my case i lost my job while on a IVA so couldn't afford the payments for about 3 months, i had already taken all my holiday entitlements (the company I'm with gave me 3 months over 5 years that i could miss a payment in case of diffulcties or going on holiday egs) so i was expecting the IVA to fail.
My manager told me not to worry and they informed all my creditors what was happening, he said it was important to keep them up to date and in the end i got a new job but with less money so they were no way i could make the original IVA payments so a new meeting was brought up with my creditors and a new proposal was put to them that they accepted.
I'm paying £100 less a month now, 6 months have been added on to my IVA to make up for the short fall but at least i'm still in my IVA with only 3 years left to go.
The way how i looked at it was if you go bankrupt, IVA company loose out and your creditors loose out because there not getting there money back egs so it's in there intrest to try and work with you and sort things out.