Is the assessment for IPA "tougher" than an IVA?

thinkpositive1

About to go BR after a few years in an IVA, with income hugely down my IVA has become unsustainable.

BR is pretty much my only option and I have been getting plenty of advice and reading up on so much info and advice but one thing I fear is an IPA. To be frank, with 2 years of an IVA remaining (albeit one I cannot currently afford to keep going) I don't want to end up effectively adding on another year's payments via an IPA under bankruptcy.

I appreciate everything is assessed on a case by case basis but for anyone who went from IVA to bankruptcy and then had their Inc & Exp assessed for an IPA - are the "allowances" within a "reasonable budget" treated more severely than an IVA assessment of Inc&Exp.

I have heard a few people saying if anything BR is a bit more lenient - there can be a bit more generosity in the parameters allowed for budgetary items than an IVA.

Any experiences people can share on this?

SPELLKASTER

I too am currently 2 years into a 6 year IVA.

My income is largely taken up by vets bills, dental costs, and other essential bills.

I also am wondering whether or not to go for full bankruptcy because I fear I cannot keep up the payments on the IVA.

I am on state benefits, and if I loose them next year as they are due to be reviewed, I cant continue with the IVA.

I would advise you to go to your debt adviser at your local Citizens Advice Bureau who might be able to advise you better as to what options are available as I am going to look at bankrutptcy also.

Good luck xx

thinkpositive1

SPELLKASTER wrote: »

I too am currently 2 years into a 6 year IVA.

My income is largely taken up by vets bills, dental costs, and other essential bills.

I also am wondering whether or not to go for full bankruptcy because I fear I cannot keep up the payments on the IVA.

I am on state benefits, and if I loose them next year as they are due to be reviewed, I cant continue with the IVA.

I would advise you to go to your debt adviser at your local Citizens Advice Bureau who might be able to advise you better as to what options are available as I am going to look at bankrutptcy also.

Good luck xx

Cheers Spellkaster

I have already seen CAB, spoken to Business Debtline (I am self employed and was advised to talk them) and a legal person specialising in bankruptcy as well as my Insolvency Practitioners. Everyone gives the best advice they can I am sure but sometimes it conflicts and people's experiences posted on here tell different stories to the advice I have got on this and other issues.

Hence me thinking those who have gone from IVA to BR and been assessed for a potential IPA would know best about how tough the Inc & Exp assessment is in comparison to an IVA.

Good luck too

Anondebtadvisor

Can you not speak to your IP and see if they will propose a variation to lower your IVA payments to an affordable level?

Remember that it is your IVA and it is your right to propose a variation to your IVA.

thinkpositive1

Anondebtadvisor wrote: »

Can you not speak to your IP and see if they will propose a variation to lower your IVA payments to an affordable level?

Remember that it is your IVA and it is your right to propose a variation to your IVA.

Thanks Anondebtadvisor

I have been through that process looking at a number of scenarios. With tax arrears too (which means to maintain the IVA I would need to also set aside enough for a "time to pay" arrangement with HMRC) I am left with about MINUS £50 in my monthly budget. With some tweaking of budget items and HMRC providing a bit more leeway I could potentially offer up £80 or so a month in an IVA but that isn't enough frankly. A variation has been agreed before to drop my IVA payments from £300 to £180. The advice from my IP is anything under £100 a month is unlikely to be viable as a proposition they could put to creditors.

skintoz

I was looking at an IVA before going bankrupt, I am glad i went bankrupt.

Seems to me IVA are only worth doing to protect assets or certain jobs.

I think with the IVA any partners whole income is taking into consideration because your iva could be seen to benefit their creditors, IPA's look at any partners contribution to make sure they are paying their correct % in relation to each others income.

Also i know people recently who have had their PPI snatched by IP's after their IVA's are complete and certificate provided so just like bankruptcy.

SPELLKASTER

skintoz wrote: »

I was looking at an IVA before going bankrupt, I am glad i went bankrupt.

Seems to me IVA are only worth doing to protect assets or certain jobs.

I think with the IVA any partners whole income is taking into consideration because your iva could be seen to benefit their creditors, IPA's look at any partners contribution to make sure they are paying their correct % in relation to each others income.

Also i know people recently who have had their PPI snatched by IP's after their IVA's are complete and certificate provided so just like bankruptcy.

Thats is not strictly true here.

I live with a partner and he is not named on my IVA at all, and his income was not taken into account.

Also, what is an IPA!?

National_Debtline

Hello there,

There is a guide to the figures used by the Insolvency Service on the excellent CabMoney system. You can find that here:
http://nedcab.cabmoney.org.uk/ipaipo.asp

There figures used by IVA firms can vary significantly, we have come across firms that leave very little for living costs. Most respectable firms adhere to the IVA protocol, as such they use recognised guideline figures.

Really hope you found the folks at Business Debtline helpful.

David @ NDL.

longtermplanner

thinkpositive1 wrote: »

Hence me thinking those who have gone from IVA to BR and been assessed for a potential IPA would know best about how tough the Inc & Exp assessment is in comparison to an IVA.

That is a good thought, but in practice there won'[t be many people around who fit the bill. Most people who have started an IVA really struggle hard to carry on with it. People who are more than half way through can sometimes get their IP to propose to the creditors that the IVA is treated as complete. So most people moving from an IVA to bankruptcy tend to have little or no surplus income left so an IPA is not an option and it doesnt really matter what the OR's calculations are.

My income is largely taken up by vets bills, dental costs, and other essential bills.

Are your vets bills and dental costs large? If so, you will have problems in bankruptcy as well.

Could you post a Statement of Affairs here and we could have a look at what the OR might say? http://www.stoozing.com/calculator/soa.php

thinkpositive1

National_Debtline wrote: »

Hello there,

There is a guide to the figures used by the Insolvency Service on the excellent CabMoney system. You can find that here:
http://nedcab.cabmoney.org.uk/ipaipo.asp

There figures used by IVA firms can vary significantly, we have come across firms that leave very little for living costs. Most respectable firms adhere to the IVA protocol, as such they use recognised guideline figures.

Really hope you found the folks at Business Debtline helpful.

David @ NDL.

Thanks David

Yes Business Debtline were superb. Others were too but for the self employed BDL clearly "got" my situation and a grasp of the issues quickly and provided, I thought, clear advice.

skintoz

SPELLKASTER wrote: »

Thats is not strictly true here.

I live with a partner and he is not named on my IVA at all, and his income was not taken into account.

Also, what is an IPA!?

I never said anything about the partner being named on a sole IVA just like your partner wouldn't be mentioned on your bankruptcy.

IVA companies do calculate IVA's using partners income and what they pay to the bills (well the ones i spoke to did) because if you tried to enter an iva saying you pay all the bills and your partner blows it all on having a good time or paying their debts then your creditors would likely refuse your IVA.

With an IPA you tell the OR your partners income and they work out they are paying the % of the bills they should be according to their income.

BR was the best thing i have done, I wish i had years ago. IVA's are good for two things protecting assets and your job if you in management or a director.