We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Should I fail my IVA and go bankrupt

Bscdjc
Bscdjc Posts: 8 Forumite
in Bankruptcy & living with it
Hello,

I have a house in £30K negitive equity with 3 charges on it, relating to my morgtage, secured loan and a credit card debt.

I have an IVA they have just taken my PPI refund £10K and now they say that it's just extra payment. They also wont reduce my monthy payment or reduce the term.

As I still have no money or quility of life should I fail my IVA ( I have already reduced my payments twice) but increased my term by 1 year.

Will I be able to go bankrupt, I am in full time employment.

Advice anyone.
«1

Comments

  • debtinfo
    debtinfo Posts: 7,012 Forumite
    how long have you got to go,

    Do you know what an IPA (income payment agreement) is
    Hi, im Debtinfo, i am an ex insolvency examiner and over the years have personally dealt with thousands of bankruptcy cases.
    Please note that any views i put forth are not those of my former employer The Insolvency Service and do not constitute professional advice, you should always seek professional advice before entering insolvency proceedings.
  • Ineedaname
    Ineedaname Posts: 3,681 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    How much do you still owe in debt and how long have you got to go on the IVA?

    Are you really struggling to live day by day and if so, is there any way you could negotiate a reduction in your IVA payments on that basis?
    When I joined, I needed a name. The forum members gave one to me...I am INAN :D
    "Fortunes ebb and flow and a boat must move with the tide and be thankful that it floats." Judith Allnatt
  • Bscdjc
    Bscdjc Posts: 8 Forumite
    I have 4 and a but years left, i had to reduce the monthly payment at the start of the year due to a drop in income then added an extra year on the term as a result

    what's an ipo
  • debtinfo
    debtinfo Posts: 7,012 Forumite
    and roughly what are you paying at the moment
    Hi, im Debtinfo, i am an ex insolvency examiner and over the years have personally dealt with thousands of bankruptcy cases.
    Please note that any views i put forth are not those of my former employer The Insolvency Service and do not constitute professional advice, you should always seek professional advice before entering insolvency proceedings.
  • Bscdjc
    Bscdjc Posts: 8 Forumite
    between 100 and 150 pm just done a new i&e and worked out at £57 pm not sure they will accept that
  • debtinfo
    debtinfo Posts: 7,012 Forumite
    ok in a bankruptcy many people have to pay a payment for 3 years into the bankruptcy, much like an IVA, the reason it is better though is because you only have to pay what you can afford, not to meet any minimum target, However the trustee in charge of your case has a big say in what "you can afford" which may not be the same as you think, but broadly they are similar to how they work it out in an IVA

    2 big points to consider,

    how attached are you to your home, what are the total secured payments and how do they compare to a local rent,

    do you have any cars on finance
    Hi, im Debtinfo, i am an ex insolvency examiner and over the years have personally dealt with thousands of bankruptcy cases.
    Please note that any views i put forth are not those of my former employer The Insolvency Service and do not constitute professional advice, you should always seek professional advice before entering insolvency proceedings.
  • Bscdjc
    Bscdjc Posts: 8 Forumite
    there are no assits in my name, except the house with my wife. We have £30k negitive equity would I be forced to sell
  • debtinfo
    debtinfo Posts: 7,012 Forumite
    what are the total secured payments and how do they compare to a local rent,
    Hi, im Debtinfo, i am an ex insolvency examiner and over the years have personally dealt with thousands of bankruptcy cases.
    Please note that any views i put forth are not those of my former employer The Insolvency Service and do not constitute professional advice, you should always seek professional advice before entering insolvency proceedings.
  • tigerfeet2006
    tigerfeet2006 Posts: 14,030 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    I am sure that everyone will agree that they won't accept that.

    Have a look at the sticky marked Bankruptcy Help, it will explain a lot of' the basics on going BR.
    https://forums.moneysavingexpert.com/discussion/1056083

    You would need to fail the IVA and then get some advise from one of the debt charities high lighted in the sticky.

    Any questions you have on the process just ask.

    ETA: DI you are a star :)
    BSCno.87
    The only stupid question is an unasked one
    Loving life as a Kernow Hippy
  • Bscdjc
    Bscdjc Posts: 8 Forumite
    local rent is about 450 to 550 a month my mortgeg is £300 secured loan is 800 pm
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.2K Banking & Borrowing
  • 253.6K Reduce Debt & Boost Income
  • 454.3K Spending & Discounts
  • 245.3K Work, Benefits & Business
  • 601K Mortgages, Homes & Bills
  • 177.5K Life & Family
  • 259.1K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.
Update Your Picture