IVA into DMP???

dimples_2

Is it possible when you,ve set up an IVA to go back to a DMP instead??

I have a joint IVA with OH. Things are a bit rocky with us and I may at some point end up alone with my 2 kids and a whole lot of debt. I don't work am paid carers allowance as a carer for my daughter who has severe disabilities plus she gets DLA and I get the normal child benefit. I have no other income so would not be able to continue the IVA myself.

I have no assets as we rent the car is part of my daughters DLA so doesn't belong to me.

To be honest I know I should go bankcrupt but the thought of BC scares me to death and the impact on our future it could have.

Anyone know if I'd be able to do a DMP if the IVA fails?

Thanks for your time.

rog2

I have not heard of anyone going from an IVA to a DMP - normally, if an IVA fails then the next step is bankruptcy.
Could be wrong, though, and I am sure someone will either confirm my thoughts or put me right.

sgx.saint

Best bet would be to consult your IP.

The IP might be able to arrange a payment break, or reduced repayments considering your circumstances.

Your creditors would rather you still pay them something rather than nothing through Bankruptcy.

Somerset

I believe a lot of IVA's have a clause in them that say if they fail then then the IP has to go for bankrupcy. You need to read the IVA document or speak to your IP about that - it may be that you've no choice about the next step. If there isn't such a clause in the IVA, please rethink the bankrupcy route anyway. You make no mention of a property or other assets to protect, if there are none, it's probably the quickest best way out. You'll only have the benefits you mention to live on, so there's no surplus income anyway. You'll be deciding to pay to creditors ( on a DMP ) benefit income, so you'll struggle. Plus you won't be paying much ... will the creditors accept it? will they constantly ring you to increase it ?. You'll have these debts hanging around for the rest of your life whereas bankrupcy will knock them on the head. Anyway food for thought.

dimples_2

Thanks for the replies.

I guess you are right Somerset, at least by going BC there will be an end in sight. It just doesn't "feel" right to me as I've through my own fault got myself into this debt just feel I should be paying something back.

Thanks again and Merry Christmas to you all.