cancelling my iva

smurfwife

unfortunatly due to my husbands job not improving (so less wages as he is self emplyed) and cost in living increasing i will be sending a letter to my iva today cancelling it and will be looking down the bankruptcy route as living like this is just impossible any more..
what i would like to know is will the calls from my creditors start again once they are informed the iva is failing?
will the interest start again on my debts?
and to be honest what happens if im not accepted for bankruptcy ?

FoggyBrain_2

Hi. You really need to dicsuss options with your IP. Your IVA will fail automatically after three payments have been missed -- you cannot proceed with BR until the IVA officially fails. Your creditors won't know anything until the fail happens, so, if you go for BR right away they will not have a chance to react. BR will cost you £700, so save up those missed payments to account for this ( some IP's set aside this amount from IVA payments as a contingecy -- so, again, speak to your IP).
.
Once the IVA fails all bets are off with your creditors and they will start charging interest and hassling for payment.

It is unlikely you will be refused BR, but, if that did happen you'd be back to square one with creditors (and the worst they can do is make you bankrupt!!! ).

Finally, if I haven't mentioned this already --- speak to your IP :-)

Best of Luck.

smurfwife

many thanks spoke to my ip who agreed to fail it straight away she said she was actually amazed we were evening managing to pay it so long received my failure notice within 2 days so now its bankruptcy for me

FoggyBrain_2

Well, at least things are being sorted .. and bankruptcy isn't as bad as it used to be.

Best of luck