Reduction in income - struggling to complete IVA

beckett110

I am looking for some advice. I am nearly 4 years into my IVA and just when I thought the end was in sight I've received my tax credits renewal and from this month our monthly payments are dropping by £200 per month.

I was just about managing to cope with rising bills before this and now I don't know whether I will be able to keep up with my IVA. I am only paying £200 per month as it is so I don't know whether it would even be possible to reduce my payments. It is due to finish in November next year due to me having a 3 month payment break when my partner was signed off work sick due to a slipped disc.

My main questions are:

* If I have to file for bankruptcy will this show on my credit record for another 5 years?
* Is there likely to be an option to end my IVA early due to my change of circumstances?

I feel absolutely gutted about this as its been a long struggle and I was finally optimistic of overcoming my debts and now I feel like I'm back to square one all over again. The IVA is just mine but my partner has had to suffer as a result of us having a joint account and I just don't know what to do for the best. Bankruptcy was always a last resort for me but I can't see any alternative.

I've contacted my IP who are going to send out the income/expenditure paperwork to advise me on my possible options and how to move on from there. Any advice in the meantime would be much appreciated.

longtermplanner

Nearly 4 years into your IVA, it may be possible for your IP to propose that your IVA is treated as complete to your creditors.

First however your IP is likely to suggest that you take a payment break for a few months, which will be added onto the end of your IVA. Then your situation will be looked at again at the end of that to see if it has changed.

Do you have a house with equity in it?

To answer your question, if you go bankrupt, this will remain on your credit record for 6 years.

beckett110

I rent the property I live in so that wouldn't be a problem, I'm hoping that if I have a payment break things might change but I don't see things changing enough unfortunately.

I hope that my creditors would lean towards agreeing to complete the iva with my contributions so far as I think bankruptcy would result in more fees going towards my ip rather than my creditors as I have no assets they could benefit from.

I've submitted by income and expenditure for my annual review which was due next month anyway so my ip has bought it forward slightly to fully assess my situation.

Fingers crossed I can resolve this as I feel like I did before my iva was agreed with all the stress and worry. I was feeling really positive about finishing it next year and moving forward.