Can I request our IVA company to make us Bankrupt?

ROSDOG

Hi Guys

Currently in a IVA that has been running for over a year & was managing quite well until a dramatic change in circumstance.

We entered into a IVA in 1st place as my Wife is ill & she will not get any better & need to care for her on a daily basis.

we get benefits plus I have a small part time job which fits in so I can care for my Wife & just get by financially.

We were both working FULL time before she became ill.


here's where the problem starts!

1. The Iva was agreed on the condition that after 6 months I increase my working hours & money....I cant because I have to care for my Wife.

2.My Mortgage has now reverted back to repayment & Interest ( been Interest only for 6 months)

3. cost of living gone up since taking out IVA

4.I had to take a pay cut on my part time job in order to keep it.

I have been in contact with IVA company & they say I can afford the payment of £200

we have missed 3 IVA payments but made a payment last week but only half what we are expected to pay so looks like the IVA will fail shortly.

so I have more going out than coming in & have trimmed things down to the bare minimum , negative equity on our home, Car I need for work but not worth more than £500 & have no valuable assets.

we have been to CAB & they have told us all our options & the 1 that looks the more likely is Bankruptcy but question I would like to know is can we ask the IVA company to make us Bankrupt or is this a rare thing to do in our case because the company & the Creditors not much to gain?

asking this as its hundreds of pounds to go Bankrupt & I have read somewhere that most IVA companies have reserved funds for Bankruptcy ?

sorry for waffling
many thanks

debtinfo

Most used to, but it is not as common now, the only way to know is to look at your agreement and see if the clause is in there

oplus

Talk to your IP as soon as possible.

National_Debtline

debtinfo wrote: »

Most used to, but it is not as common now, the only way to know is to look at your agreement and see if the clause is in there

Just to echo what Debtinfo has said that you may find that your IP doesn't take this route even if there is such a clause if your property is in negative equity as they may feel that bankruptcy wouldn't be in the creditors' best interest. It would certainly be worth having a chat with them to find out what your options are.

Best wishes.

ROSDOG

Thanks for the advice guys !

Been told by the IVA company that I should maybe petition for my own Bankruptcy.

1 question though please...while I am trying to put money together for BR the creditors will maybe take county court action against us, once they do this can we include them in BR?

debtinfo

yes the CCJ's will be included, one thing to remember is that that the creditors are just as bound by the IVA as you are, so until it officially fails they cannot think about starting any action and even when it does it can take a while before any action actually gets through the court process, so you have a bit of time yet