Creditfix - IVA annual review

BreakdownPending

Thanks for responding again sourcrates.

I am really trying to snap out of it and stop worrying! I’m scared I’m going to do something stupid if this worry goes on much longer. I’m over a stone lighter in the two weeks since they have been in touch

I will hopefully be contacted tomorrow.

I’m just worried sick that in some way shape or form they will say I am in breach and then I will be F**ked ! And I don’t see a way out if this fails

If my 3 x payslips show I’ve taken home more, I guess they will ask for more payslips and slap down the sum of whatever I have gone over? I will have to pay that and increase my monthly

I’m just in over drive and I cannot bare the thought of failing and bankruptcy 

I feel like I have ruined my whole life

RAS

Failed IVAs very rarely lead to bankruptcy. A good third fail and the biggest problems are that the IP has probably paid their own fees and nothing towards the debts and waiting for the confirmation letter.

You just stop paying everyone, build an emergency fund and wait until the creditors get in touch before making affordable payments. The creditors aren't going to have high expectations after a failed IVA.

BreakdownPending

Hi Ras

Creditfix would be in touch with me before actually officially failing the IVA though, right?

I really hope it doesn’t fail and I can just get on with the next 20 payments and complete it. I’m just convincing myself of the worst!!!

The thing is I have 8 different creditors. If they start applying interest etc then I am well and truly buggered 

Am I able to tell if anything has been paid to any of my creditors? Looking at my credit file it says most have slightly decreased since Dec 2024.

i thought I had hit rock bottom when I signed up to this IVA. But the uncertainty over the last few weeks is close to tipping me over the edge 

sourcrates

You really are overthinking this whole process, and for no good reason, you must look at this logically, you may also benefit from reading your IVA agreement, because all this is listed in it, IVA`s only fail, on the whole, for one reason, and one reason only, and that is because the debtor cannot afford the repayments and stops paying.

For anything else, and this means you, in your current situation, it just means your payments go up, nothing more.

And failure of an IVA can take up to 12 months to occur, its not an overnight thing, and does not automatically lead to bankruptcy, again, look at the facts, its only worth making someone bankrupt if their home has substantial equity in it, and is solely owned by the debtor, about 1-100 failed IVA`s results in a bankruptcy order.

Your IP, on average will pocket around 5k from your arrangement, the nominee fee which around 2k, and the supervisors fee, which is approx. 20% of your monthly payments, so I can almost guarantee you 100%, they will not fail your arrangement, why would they? they want their fee`s, period.

You really need to understand how your arrangement works, and how much your IP relies on you to keep making those payments so they can keep getting paid, its all there in black and white I really can`t be any clearer than that, your IVA will not fail.

BreakdownPending

You were all right!!!

Absolutely nothing to worry about!
All done and dusted. Not even an increase in payment

I would  just like to Thankyou all for reassuring me, even if it was like talking to a brick wall.

I wasted 2 solid weeks with worry for absolutely nothing

sourcrates

BreakdownPending said:

You were all right!!!

Absolutely nothing to worry about!
All done and dusted. Not even an increase in payment

I would  just like to Thankyou all for reassuring me, even if it was like talking to a brick wall.

I wasted 2 solid weeks with worry for absolutely nothing

Been there, got the t-shirt, glad it worked out OK.

ManyWays

Thanks for the very positive update!

(@sourcrates could you move this to the IVA board where it may be seen by other people with similar worries?)

RAS

BreakdownPending said:

You were all right!!!

Absolutely nothing to worry about!
All done and dusted. Not even an increase in payment

I would  just like to Thankyou all for reassuring me, even if it was like talking to a brick wall.

I wasted 2 solid weeks with worry for absolutely nothing

Sorry I didn't make explicit that most people who fail IVAs are those who can't afford to pay them, because they were wrongly advised, have a reduced income or massively increased costs.

Even so, very, very few become bankrupt, some through choice.