IVA might fail, bankruptcy?

MrKev83

Hi, I have been in an IVA since last september for a term of 60 months, paying 279 until my car finance finishes and then that on top.

I am due to come out of the RAF but started to rent in feb this year, but still live in accomodation on base whilst I work. I got a phone call today saying that cos I didn't "have to" rent then my IVA is likely to fail cos my added expenditure is more than my payment so I now pay 170 and my account is in arrears. (I rent so I can live with my partner, the RAF only caters for married)

I am struggling even to make the 170 and with four years left on my IVA is bankruptcy a bad option? I mean both an IVA and BR will screw my credit rating but with the time I have left on my IVA would it be a good option for me to go bankrupt and actually have a bit of money again?

Thanks in advance

gettingitsorted

Hi Mr Kev

Is your IVA with a fee charging company?

i would advise you to contact either of the debt charities www.payplan.com or www.cccs.co.uk both are charities so no fees they will give you the best proff advice for your circumstances .

MrKev83

It is with a company called Haines Watts, which was through a TV advert which I now regret obviously

gettingitsorted

Yeah iv heard of those .
you wont be the first or last to have an IVA fail ,i really would advise you contact one of the links i posted so you can find out what options are available to you.

MrKev83

Just spoke to payplan and they said to speak to my IP, which I already have...I'll just wait and see wot my creditors say, another option may be to extend my IVA past the 5 year point, thats also why I'm thinkin would bankruptcy be a "better" option for my credit rating, get me out of debt quicker and back building my credit rating up post BR discharge.

fermi

I really do agree with GIS.

You need to get some professional advice on what is best for you, and not what is best for your IVA company (which is the only thing they normally care about).

MrKev83

will have to wait till my days off then and go to CAB. Just wonderin about BR too as an option?

fermi

BR is always an option.

That would stay on your credit record for 6 years, and make it next to impossible to obtain any significant credit until that drops off (apart from perhaps a mortgage).

You might have to pay an Income Payments Agreement for 36 months. See here to see about these:

http://bankruptcy.informe.com/viewtopic.php?t=18

Have you got any other concerns/questions about the consequences of BR?

Sounds like that was a bit short by Payplan? Have you spoken to CCCS?

gettingitsorted

Kev bankruptcy is an option but not one to be taken lightly by any means .

Your IVA company are charging you for the privilage of using them so extending your IVA will just put more money in there pockets so they will jump at the chance to help you .

MrKev83

I have a car on finance at 106.88 a month which i need to get to work as when i come out of the RAF I plan to be commuting 30 miles a day each way to work, will they take it off me?

fermi

MrKev83 wrote: »

I have a car on finance at 106.88 a month which i need to get to work as when i come out of the RAF I plan to be commuting 30 miles a day each way to work, will they take it off me?

Cars and BR are really complicated.

As far as the 'Official Receiver' is concerned they assess each case as to whether a car is essential and not just convenient.

Many HP contracts have that going BR effectively ends the contract, so it would be up to a combination of both the OR and finance company to decide.

In other words, almost impossible to give you a straight answer.