Failing IVA - process/approach

beeteecee

Hi there,

My IVA is going to fail, as I am not going to make further payments towards it. I have post-IVA debt and bankruptcy is going to happen sooner or later, probably sooner.

Anyway - my main point - my IVA company gave me a 6-month payment break to try and solve the post-IVA debt issues (HMRC...) and this hasn't happened, they haven't come to an agreement with me and so nothing has changed. My IVA payments are due to start up again on 8th May but with this post-IVA debt being unmanageable, there is no point in paying into the IVA is there? It'll just be the same situ again repeating and repeating.

So - what do I do now? Do I contact the IVA company and tell them I'll be making no further payments? Do I ask for it to be failed? I'm pretty sure ignoring them entirely isn't the answer but I'm not sure what is.

Thanks as always  

ManyWays

I think you should tell the IVA firm in writing that you will not be paying any more, that you do not want another extension, and that you want the IVA failed as soon as possible as you intend to go bankrupt.
Ask them for confirmation in writing that they will be failing the IVA. 
And of course start saving up the bankruptcy fee. 

sourcrates

Well if bankruptcy is going to be on the cards, you don`t really have to do anything except stop paying the IVA.

You can write to your IP and tell them your intentions, but essentially the only way it will fail is if you stop payments.

The process can take some time, but that`s all you have to do.

beeteecee

ManyWays said:

I think you should tell the IVA firm in writing that you will not be paying any more, that you do not want another extension, and that you want the IVA failed as soon as possible as you intend to go bankrupt.
Ask them for confirmation in writing that they will be failing the IVA. 
And of course start saving up the bankruptcy fee. 

Thanks - I'm waiting for the HMRC to make me bankrupt/the IVA company to do it? Most advice on here has been to let them do it rather than paying myself? 

Thanks again for your reply

beeteecee

sourcrates said:

Well if bankruptcy is going to be on the cards, you don`t really have to do anything except stop paying the IVA.

You can write to your IP and tell them your intentions, but essentially the only way it will fail is if you stop payments.

The process can take some time, but that`s all you have to do.

Thanks! I think bankruptcy seems to be a waiting process or may happen when the IVA fails? I'm waiting for them or HMRC to get the process moving.

Thanks again for your reply . 

sourcrates

One possible consequence of IVA failure is for the IP to petition for your bankruptcy, however, that is extremely rare, and would only happen if your home had a lot of equity in it, and whilst on the theme of housing, do you own property at all? as bankruptcy would relieve you of it most likely.

beeteecee

sourcrates said:

One possible consequence of IVA failure is for the IP to petition for your bankruptcy, however, that is extremely rare, and would only happen if your home had a lot of equity in it, and whilst on the theme of housing, do you own property at all? as bankruptcy would relieve you of it most likely.

Hi - nope no property or anything of value at all. When I entered the IVA the HMRC had been threatening bankruptcy so I expected it would happen again once the IVA failed? Esp with further additional debt...I can of course petition myself but was advised to let them pay if they want to go ahead with it? Thank you . 

ManyWays

How old are you, this makes a difference to the advantage of going bankrupt yourself or waiting for HMRC?

beeteecee

ManyWays said:

How old are you, this makes a difference to the advantage of going bankrupt yourself or waiting for HMRC?

I'm 37 - not sure what impact this has...I'm self-employed and will remain so whatever happens and am the sole earner for our household of 7 so...need to get into shape really..

Thanks  

ManyWays

If you were over 55, so you could potentially access your pension, then there is a check on your pension if you apply to make yourself bankrupt, but no check applies if a creditor makes you bankrupt. 
But this isnt relevant to you.
I dont have any recent experience, but HMRC used to sometimes be very slow about going bankrupt, so getting it over with by going bankrupt yourself used to often be preferable if there was no other option. 

beeteecee

ManyWays said:

If you were over 55, so you could potentially access your pension, then there is a check on your pension if you apply to make yourself bankrupt, but no check applies if a creditor makes you bankrupt. 
But this isnt relevant to you.
I dont have any recent experience, but HMRC used to sometimes be very slow about going bankrupt, so getting it over with by going bankrupt yourself used to often be preferable if there was no other option. 

I'm not organised or put together enough to have a pension of any kind...god knows what I'll do if/when I have to stop working. Another for the worry bank 😅

I just want to get things right and give us the best chance for a better future and it's deciding how to do that I guess. Thank you.