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In IVA considering Bankruptcy
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savingsavy
Posts: 31 Forumite
in IVA & DRO
Hi,
My partner and I are in a joint IVA which started in 2018. We've had 9 months payment holidays and it is now meant to end in June 2024.
However, things have gotten more complicated. I was made redundant due to Covid lockdowns and I am still looking for employment. We receive some Universal Credit which is a huge help, but it does not make up the income I lost. Since the IVA we accrued debt of £2500 for council tax, £1400 for water, which we were making payments towards these with an arrangement with the creditors, but just received an overpayment of tax credit letter HMRC of £1200 each for a joint claim. Since the overpayment dates back from before the IVA, it can be added to the IVA but we'll then each be liable for the total of £2400 each and £4800 is being added to the IVA. Our IP now wants to extend the IVA by up to 24 months.
So we are a bit concerned whether the IVA is still the best solution for us. Our income is currently a lot less than it was then we started the IVA and realistically cannot sustain the IVA. Due to all the stress, it has impacted on both our mental health and our relationships. We have 2 primary school age children too.
I am looking for some help and information to help us make the correct decision please. We are not homeowners, no saving and don't own anything valued at over £1000, so the bankruptcy is looking appealing as it's an absolute debt solution so we can start with a clean slate and get a much needed respite. However, we cannot really afford to make a mistake.
Many thanks
My partner and I are in a joint IVA which started in 2018. We've had 9 months payment holidays and it is now meant to end in June 2024.
However, things have gotten more complicated. I was made redundant due to Covid lockdowns and I am still looking for employment. We receive some Universal Credit which is a huge help, but it does not make up the income I lost. Since the IVA we accrued debt of £2500 for council tax, £1400 for water, which we were making payments towards these with an arrangement with the creditors, but just received an overpayment of tax credit letter HMRC of £1200 each for a joint claim. Since the overpayment dates back from before the IVA, it can be added to the IVA but we'll then each be liable for the total of £2400 each and £4800 is being added to the IVA. Our IP now wants to extend the IVA by up to 24 months.
So we are a bit concerned whether the IVA is still the best solution for us. Our income is currently a lot less than it was then we started the IVA and realistically cannot sustain the IVA. Due to all the stress, it has impacted on both our mental health and our relationships. We have 2 primary school age children too.
I am looking for some help and information to help us make the correct decision please. We are not homeowners, no saving and don't own anything valued at over £1000, so the bankruptcy is looking appealing as it's an absolute debt solution so we can start with a clean slate and get a much needed respite. However, we cannot really afford to make a mistake.
Many thanks
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