Seems too easy!

rufus79

Well, I went to CAB for 2nd time, explained I thought an IVA had been a mistake, that my income is about to half, etc, and that I thought bankruptcy was my best option. He ran through the pros and cons with me, and then checked with another advisor and an IP, and I literally don't have to do anything except cancel my standing order for the IVA! Aparantly the court fees etc have all be taken as part of the IVA payments I have already made, and once I have missed the 2nd payment, the IVA company will make me bankrupt. I don't need to go to court, and I don't need to find the fees. I was so relieved I just cried! The guy I saw was soooo nice as well, no embarrsassment or anything with him and basically told me that in a year or so I would have my whole life ahead of me and be able to do what I wanted (I'm only 27). I feel like a weight has been lifted.

gettingitsorted

Good news rufus ,just make sure your getting the same advice along the way.

rufus79

Im going to read through all the small print on my IVA paperwork (obviously not going to call them and ask!!), and then if I haven't heard by middle of July I will go for it myself.

gettingitsorted

very sensible rufus ,just make sure you keep your eye on the ball so to speak

NekoZombie

Just out of interest, why aren't you telling the IVA company? Wouldn't it be better to let them know you've decided to default?

I very nearly signed up for an IVA in February, and I was advised by the company that your IP won't necessarily apply for your bankruptcy - they *may* do depending on what is decided by the creditors. Of course, its up to you what you do but I would want to call my IP and see what the situation is. They are there to help after all.

rufus79

Its not a 'proper' IP, its one of those companies from the back of the paper. I was advised not to tell them and just let it default by another IP called by the CAB.

NekoZombie

Hi Rufus

wherever the IVA comes from, there'll always be a proper insolvency practitioner administering the case. This is required by law. They are also required to be impartial, regardless of who they work for.

Tr@cker

Out of interest how do you go on with an IVA if you get a sudden windfall say, half way thru the plan ? Do the creditors have any claims on it ?

NekoZombie

Tr@cker wrote: »

Out of interest how do you go on with an IVA if you get a sudden windfall say, half way thru the plan ? Do the creditors have any claims on it ?

Absolutely they do! Whichever route you take to insolvency (be it bankruptcy or an IVA) your assets are no longer yours. In bankruptcy, this only lasts until discharge (1 year max), or the end of your IPA (3 years), which ever is longest. In an IVA, this is 5 years duration. During that time you forfeit any windfalls.

Tr@cker

You must be in a similar situation as myself then Neko-borderline-ive considered it but as my credit rating is A1 at the mo i might do better with a single consolidation loan (£18k)
There wouldn't be a great difference on the payments and those on a 5 year IVA plan. Im sick of having a sh1tload of cards and want a single monthly payment.
They're 'selling' those IVA's aggressively now and making it look so easy to get big reductions on debts but of course, there are fat fees in it for them and your credit rating bites the dust for at least 6 years.

NekoZombie

Tr@cker wrote: »

You must be in a similar situation as myself then Neko-borderline-ive considered it but as my credit rating is A1 at the mo i might do better with a single consolidation loan (£18k)
There wouldn't be a great difference on the payments and those on a 5 year IVA plan. Im sick of having a sh1tload of cards and want a single monthly payment.
They're 'selling' those IVA's aggressively now and making it look so easy to get big reductions on debts but of course, there are fat fees in it for them and your credit rating bites the dust for at least 6 years.

Not quite in the same situation - I'm a bankrupt as of 28 March 2007. No loans coming my way for a looooong time!