IPA and IVA Much of a muchness

Banquo21

I am declaring myself bankrupt due to my IVA being totally unaffordable and my provider not being very forthcoming in what will happen when my wife gives birth in late August. Apparently I'm not allowed to vary my IVA before my child is born, not that we need new stuff or anything!

I have filled in an income and expenditure form and at the moment the surplus income is more or less the same as it was when I started my IVA.

Obviously I know that these payments will only last for 3 years compared to the six years in my IVA which is why I am doing it I want to make a fresh start. Is it reasonable to expect the payments to be roughly around the same?

my wife and I live in the same house but the mortgage is in her name only as explained in a previous thread.

As with my IVA I am doing a joint income and expenditure form

Flyright

I wasn't aware that you could declare bankruptcy whilst still subject to an IVA..has the IVA been formally failed by the supervisor..?

egrescrimp

My understanding of IVA's is that they are a lot stricter with expenses/outgoings, your IVA will need to fail before you can declare yourself bankrupt.

Post up your SOA as it could be you actually could end up paying less into an IPA.

Banquo21

I am awaiting my failure certificate to come through. Again my provider hasn't given me a time scale. I shall post my SOA up here later.

Banquo21

Just a quick question. Does the OR send out a more detailed income and expenditure form for you to fill in? The one on the form 6.28 seems a little threadbare.

egrescrimp

Nope, they go by whats on that form. You can add additional information on the blank pages if you can't fit everything onto that page.

Banquo21

It seems open to "cooking the books"

luvchocolate

Hi...you put down what you spend the O.R will go thro this with you and if some are high will ask you to justify this.
If you post your S.O.A up on here the good folks will take a look and advice.
B.R like most things work better for planning, read everything you can, all the stickies on here, the I.S website and speak to a debt free charity.
keep coming on here with things you need explaining, brilliant help on here.

Banquo21

I have read everything I can so far. I am in touch with two debt charities and blocking calls off the "ambulance chasers" that offer me help with my SOA.

luvchocolate

Thats good research is the key, I did not mean to come over bossy.
pop you S.O.A up here we have all been there and happy to help x

egrescrimp

Banquo21 wrote: »

It seems open to "cooking the books"

The thing you need to remember is that you are going bankrupt because you currently cant afford to meet all your current financial commitments.

When you go bankrupt, the debt is obviously wiped out and you can start planning for a better future with or without credit once discharged. You can now create a budget that gives you a reasonable living experience, with an IVA you've been used to squeezing every last penny out of your income to meet what your creditors want.

I don't lead a flashy lifestyle or have all the latest gadgets and phones, what I do have is a very reasonable allowance from my income that allows me to buy clothes when I need them, put the heating on when I'm cold and have a decent meal every day without worrying about money.

I have an IPA too and you'd be surprised that the OR's actually help you with your SOA's too. If they believe you've under budgeted they will increase whatever is under budgeted they will also reduce anything you've over budgeted for. They actually added things into my SOA that I'd not even considered.

People on here are here to help and we might be able to assist you with things you've missed out or possibly under estimated. Once your budget is agreed with the OR you don't have to spend the money on those particular things in the allowance, one month you might not need clothes but may need a new toaster and microwave because they decided to pack in on the same day!