Bankruptcy - Statement of Affairs

james32_uk

You should stick with your IVA if you can help it. Would be such a shame to go bankrupt now, particularly as your total IVA repayment is only £14k which will wipe out all your debts including your £17k student loan that would remain after bankruptcy.

It should have been explained to you that a 5 year IVA can actually be paid over a period up to 72 months. As long as you make your alloted payments within 6 years then you should be ok. In other words if you intend to pay 60 payments over 5 years then you should be able to miss up to 12 payments and stick them on the end. Ring DFD and talk to them about it.

scheming_gypsy

you SOA looks similar to my girlfriends. She went to the CCCS and they told her that she wasn't earning enough to live let alone pay any of her creditors off and told her she should go bankrupt.
She wanted to take full responsibility for her debt seeing as she got into it (athough her ex did his fair share of spending the money and the bill money and then losing his job). In the end she realised that she couldn't pay the debts without getting further into debt and took everybody's advice and went bankrupt.

james32_uk

scheming_gypsy wrote:

you SOA looks similar to my girlfriends. She went to the CCCS and they told her that she wasn't earning enough to live let alone pay any of her creditors off and told her she should go bankrupt.
She wanted to take full responsibility for her debt seeing as she got into it (athough her ex did his fair share of spending the money and the bill money and then losing his job). In the end she realised that she couldn't pay the debts without getting further into debt and took everybody's advice and went bankrupt.

But in the case of the OP he'll actually owe more by going banktrupt than seeing out his IVA. Crazy!

fatbelly

James - you're becoming our expert on IVAs. I didn't realise that student loans could be included in an IVA but then found this from The Telegraph:

Many graduates are using IVAs to get rid of outstanding student loans because the Government has closed a loophole in the bankruptcy laws that allowed student loans to be written off. Under an IVA the Student Loans Company may agree to write off some of the debt. "The Student Loans Company can decline an IVA, but they often take a pragmatic view," says James Dean of Debtmatters.

National debtline advice to someone in the OP's position is pretty much what you said:

You may not be able to keep to the monthly payments under the terms of the IVA. This might be because your circumstances have changed or because the payments were set unrealistically high in the first place. It is very important that you talk to the IP supervising your IVA. The IP can ask the creditors to agree to a lower amount. You may be charged another fee for doing this. If you can't agree a new or "modified" IVA then the IP can terminate the old IVA if you cannot make the agreed payments. It is then possible for the IP to apply to make you bankrupt. If the IP decides it is not worth doing this then your creditors can take action against you instead. You will need to try to negotiate payment arrangements with each of your creditors separately to stop this happening.

james32_uk

fatbelly wrote:

James - you're becoming our expert on IVAs.....

LOL. Only the bits I'm going through myself. If you've got a house I know jack! :rotfl: