Newcomer - IVA vs Bankruptcy, need some advice

babygiraffe

Hi all,

This is my first message and I hope I have done the right thing by starting a new thread - I wasn't sure which one to latch on to otherwise. I am currently in an IVA which I have been paying into for a year now. The IVA has written off a percentage of my debts and reduced my monthly repayments which has certainly helped, but I am still struggling to pay my rent and bills each month and don't think I can manage this for another 4 years. I have had my payments re-assessed, but as I must be paying at least 27p in every £ owed, they are not prepared to reduce the repayments.

I am paying £467 per month.

I am looking into bankruptcy as an alternative, but I am not sure if I can complete the 6.27 and 6.28 Forms and submit to Court as is the usual process or if I need to go through my existing IP - can anyone advise?

Also, as I have paid off £6,000 through the IVA, will this still count, or will these repayments be ignored/written off?

Any advice would be gratefully received as I am struggling to get info from my local CAB and would like to get as much background as possible before I commit to anything.

Also, apologies if this has already been covered in another thread - I have read a number of them, but hadn't come across answers to these q's.

Many thanks.

E

TallGirl

Best advise would be to speak to your current IP and tell them you are struggling. For impartial advice CAB is good or see Payplan or CCCS.

sandralovescats

Have a look at the Bankruptcy Club & Supporters - there are a lot of people there who are, or have been, in the same position.

http://forums.moneysavingexpert.com/showthread.html?t=273844


You do need to talk to your IP who did your IVA.

You can declare bankruptcy yourself. However, if you stop paying your IVA, the IP will declare bankruptcy on your behalf - the £475 is included in the IVA charges when it is set up.

Some of the £6K will be taken as IVA charges but in bankruptcy this will be immaterial.

If you get an IPA, which sounds very likely on the amount you are paying to your IVA, you pay it regardless of the amount of money owed, whether that amount is £10K or £200K. It is a fixed sum worked out from your residual income.

babygiraffe

Thank you!

I will talk to my IP.