Can IVA be converted to a DMP

davebeddo

Hi folks,
I currently have an IVA which I am struggling to make the monthly payments.

My girlfriend lost her job last year and we got behind on council tax and utility bills. I admit, I stuck my head in the sand and hoped she would find work immediately.

Long story short, she was not able to find work, I am now faced with large monthly bills repaying arrears.

Basically my question is would I be able to convert a IVA to a DMP and so repay arrears more quickly? And then in April (when arreas will be sorted) increase my DMP payments?

Hope someone can help?!?!

debtinfo

not as such, you could let the IVA fail (would need to check if there was a bankruptcy clause) and you may then be able to start a DMP, Also be aware that if you are in the first year of an IVA then the debts are likely to be larger than when you went into the IVA

Charco_2

As above, you simply let the IVA fail... but I personally wouldn't! Especially not to enter a DMP!

As for a bankruptcy clause... I'd be 99.9% certain that no-one is going to pursue your bankruptcy for failing your IVA! Bankruptcy fees would almost entirely consume any value there would be in your assets or earnings leaving nothing for your creditors so they are not going to do that. why would they spend their money for no return!?

Have you spoken to your IP? Any time your circumstances change - for better or worse - you need to inform your IP to review your situation. IVAs are not inflexible and need to reflect your situation if they are to work in the long term... It would be madness to think that nothing your personal situation would change in the course of five years. So instead of becoming just another failed IVA statistic, speak to your IP and see what is salvagable!