Failing an IVA

Whitetornado

Hi, I have posted on the bankruptcy board today as well but wondered if anyone here could help too. My husband is currently in an IVA ,it has been running for 2 1/2 years. We are finding it very difficult to make the payment each month. For the IVA they calculated the payments using my husbands wages and all of my wages. At the beginning they said we had £215 to pay each month but at the creditors meeting this was increased to £255 per month. At our annual reviews our I&E now looks like we have £157 surplus each month, but this is only because I lowered some figures because I thought it would fail if we only had as little as what we really do have. ( We had not come across this site before and were scared we had no other options ). I hope I am making sense.
We have already missed 3 payments with the IPs permission and they increased the payments by £20 so now they are £275 per month.
We never have any money and are always robbing peter to pay paul with our other bills to make the IVA payment.
Do you think bankrupcy would be the better option, we have no assets and live in a council house.
I hope someone will have a bit of advice, Thanks.

pammie39

hi there
i can't give you any advise, but only to wish you luck in what you do.
i am in the same position, trying to deceide which way to go.
i will need to have the 3 month non payment option,(only just payed back the last 2 months arreers).

good luck

Whitetornado

Hi, Pammie39
I have read your posts and see you are in a similar position to us.
I wish you all the luck. It is very stressful isnt it?
Thankyou.

MIVAA

Hi Whitetornado,

Without seeing the full picture it is almost impossible for anyone to comment really.

What I can say is this, an IVA is supposed to offer you an alternative to bankruptcy, especially if you have an asset or income which you are trying to protect.

Therefore do you have an asset that you are trying to protect, ie do you have any equity in your home - or do either yourself or you husband risk being made unemployed if you declare yourself bankrupt?

If the answer to both these questions is no, then I would suggest you need to ask a professional debt adviser take a look at your financial statement.

And if, as I suspect, your disposable income is lower than £100 per month, you should really be considering the bankruptcy option.

Best advice would be to ring a professional advisory service - such as the National Debt line. 08080 808 4000

They will go through everything with you and help you establish the best way forward from here.

MIVAA

Whitetornado

Thanks MIVVA
We have no assets to protect and both of our jobs are fine and would be unaffected. I will give National Debtline a ring tomorrow.