IVA failed help

Ma_Rah

I have debts £9000 all payday loans and mobile phone bills. i started an IVA 2 years ago my circumstances have now changed a lot so i am no longer able to afford the payments. When i spoke to Knightsbridge my IVA providers all they told me is that my IVA will fail if i stopped paying and my creditors will now be able to contact me and unfreeze the interest . I have no assets apart from a 12year old car which is only worth about £1100.

Has anybody had a failed IVA?
What are the chances of them petitioning for bankruptcy with that amount of debt?
thanks

sourcrates

Ma_Rah wrote: »

I have debts £9000 all payday loans and mobile phone bills. i started an IVA 2 years ago my circumstances have now changed a lot so i am no longer able to afford the payments. When i spoke to Knightsbridge my IVA providers all they told me is that my IVA will fail if i stopped paying and my creditors will now be able to contact me and unfreeze the interest . I have no assets apart from a 12year old car which is only worth about £1100.

Has anybody had a failed IVA?
What are the chances of them petitioning for bankruptcy with that amount of debt?
thanks

Hi,

It's unlikely they will petition for your bankruptcy, as that would cost them money, and if you have no assets to realise, what is the point ?

There would be no benefit to them.

Usually the calls and letters will probebley start up again, and that will be it.

Once the IVA has failed, you may want to look into a debt relief order, as you will most likely qualify.

Info here :

https://m.stepchange.org/how-we-can-help-you/debt-solutions/debt-relief-order?WT.srch=1&WT.mc_id=288026&WT.seg_1=dro&gclid=CI775fGiztECFYIL0wod99AJdA

You make no payments for a 12 month period, after which your debts are written off.
A DRO can be set up within a week.

DCFC79

Ma_Rah wrote: »

I have debts £9000 all payday loans and mobile phone bills. i started an IVA 2 years ago my circumstances have now changed a lot so i am no longer able to afford the payments. When i spoke to Knightsbridge my IVA providers all they told me is that my IVA will fail if i stopped paying and my creditors will now be able to contact me and unfreeze the interest . I have no assets apart from a 12year old car which is only worth about £1100.

Has anybody had a failed IVA?
What are the chances of them petitioning for bankruptcy with that amount of debt?
thanks

Why an iva for a small amount ?

I thought to do an IVA it needed to be for a higher amount.

sourcrates

DCFC79 wrote: »

Why an iva for a small amount ?

I thought to do an IVA it needed to be a certain amount.

Some companies recomend IVA's where they are unsuitable, in order to benefit from the large fees generated.

That could be the case here, although there is no minimum amount of debt for an IVA, they usually work best when the debtor has a lot of debt, in the region of 30-40k plus.

DCFC79

sourcrates wrote: »

Some companies recomend IVA's where they are unsuitable, in order to benefit from the large fees generated.

That could be the case here, although there is no minimum amount of debt for an IVA, they usually work best when the debtor has a lot of debt, in the region of 30-40k plus.

Thanks, useful to know.

foxy-stoat

Ma_Rah wrote: »

I have debts £9000 all payday loans and mobile phone bills. i started an IVA 2 years ago my circumstances have now changed a lot so i am no longer able to afford the payments. When i spoke to Knightsbridge my IVA providers all they told me is that my IVA will fail if i stopped paying and my creditors will now be able to contact me and unfreeze the interest . I have no assets apart from a 12year old car which is only worth about £1100.

I think you may be in trouble - IVA £9000 - normally pay 25% of the debt = £2250 over 5 years = £37.50 a month.

If you are unable to afford £37.50 you need to take drastic steps - second job, sell stuff.

How much are your monthly payments, which should be based on your income and living expenses?