IVA due to covid on verge of cancellation

Confused83_2

Hi, im at my wits end with this debt. I left a past relationship and ended up with all the debt. I owed a total of around 14k to 4 or 5 credit cards and loans. No mortgage etc.
I was paying £143 into my iva and have kept up with payments for 2 years as im self employed... then covid strikes. Ive been out of work since march with no income bar Universal credit. Through no fault of my own i cant get work now because nobody in my sector is employing and i cant find a job anywhere.

My IVA gave me a 3month break but now im due for there annoying annual review. I haven't a clue what to do as i feel like ive paid 2 years money for nothing now. Looking back i wish id just gone bankrupt as the iva has been a total waste of time for me. I only chose iva as i disnt want to lose my van in the BR or id also lose my self employment job so it was catch 22. I ended up going for the iva to remain working and try to do the right thing by paying some of the debt back which in hindsight was a stupid move on my part looking back i should of just done a BR. Anyway thats by the by now.

I just dont know what to do about the iva does anybody have any history of reduced payments being accepted? As if my iva fails its money down the drain. But also if it continues i cant afford my old payments now im out of work. I dont know what to do. Ive sold my van 4 months ago, not earned since then and dont even know if there will be a second peak that means this goes on longer. 

Confused83_2

I feel like my only options now bankruptcy but does anyone know the answers to these 2 questions.

1. I apply for bankruptcy and its accepted, can i buy a cheap car to get to job interviews whilst bankrupt?
And secondly
2. What happens if my bankruptcy is accepted because im on benefits now but then say in a month or twos time i get a job. Will they reverse the bankruptcy or would i then be asked to pay some money back?

fatbelly

I wouldn't anticipate the IVA being cancelled quickly. It could take a long time, possibly a year.

Until that happens you cannot declare bankruptcy.

So use the time wisely to get yourself sorted with a job and a sub-£1000 car. If it's essential for your employment a sub-£1000 car is allowed, as are the running costs.

Bankruptcy is not reversed. If your circumstances change (in the 12months your bankruptcy will run) and you get surplus income this is taken as a 3-year IPA. 

fatbelly

Actually, with 14k debt, benefit-only income and  no car, you are in DRO territory.

The downside of that is that a DRO can be (is) revoked if you get surplus income of over £50 per month within the 12-month moratorium