Confused Iva help

Annalise1234

Hi I posted back in September regarding going down the I v a or bankruptcy route , I decided on the I v a to try and pay back some of what I owed, however since then I have had a breakdown and am no longer working and have been placed on e s a support group and receive housing benefit. I have called credit fix (ip) who have said there is a government scheme in place which will pay my I v a payments for up to a year ( if I’m still unable to work) I was calling them as I thought it’s best I go bankrupt , can anyone please advise me as I am very confused and have severe anxiety and I am so worried I don’t know if they are helping or advising me to carry on with the I v a so they benefit, many thanks x

National_Debtline

Hi there,


If you are already in an IVA then that would need to formally fail before you can apply for bankruptcy. I am not aware of any government scheme that pays for an IVA for 12months when you are struggling - and I think that is quite misleading. You can sometimes have a payment break in an IVA but that is not the same thing and you will need to make the payments up later.


If you have not yet signed up to this IVA I would suggest you stop for the moment. Talk to one of the free debt charities to look at this more independently and check your budget. ESA is quite a restricted income and is unlikely to be enough to make an IVA practical/ less stressful. Take your time, and I am sure you will find a solution that works for you. If you feel pressured then stay off the phone for a while and keep communication as emails/ letters.


Laura
@natdebtline

Annalise1234

Thank you , yes I am already in the I v a , I did check with credit fix to make sure it wasn!!!8217;t a payment break they guaranteed it wasn!!!8217;t but full payments made by a government scheme, it is helpful to know about the I v a failure before bankruptcy so I take it credit fix will need to fail this and recommend bankruptcy many thanks

sourcrates

I have never heard of this Government scheme either and I have advised the Justice Policy Group at the Ministry of Justice on certain debt matters.


Where debt is concerned, things do not move that quickly, do not do anything rash here, if you have no disposable income, you may as well allow the IVA to fail, don`t be tempted to sign up to any dubious schemes.


You will not automatically have to go bankrupt either, it may well be the right thing for you, with no real income or assets, but get some correct advise from one of the free debt charities as to your options.