Continue with IVA or bankruptcy?

[penny.l]

Due to a discrepency of over £600, after a 3 months payment review my IVA is likely to be failed unless I find the extra money from somewhere (this was due to poor communication from my IP and consequently a pay rise miscalculation on my part). I question whether it will be worth my while continuing with the IVA - it will take 4 yrs for my IVA to complete, another 1 yr for my credit rating to clear. I have no assets and pay rent to my boyfriend who owns his house. It will only be 1 more year for bankruptcy to clear from my account than if I stuck with the IVA. If I did go with bankruptcy though will I be left enough to live on? I earn a reasonable amount at the moment so assume payments will need to be made for 3 yrs ?Also, I was horrified to find that after 2 years of paying £300-400 a month only £3000 has actually been paid into my IVA, the rest seems to have gone to my IP who are doing little towards helping me or properly administering the IVA (I can never get hold of them to speak to). They have been absolutely appauling so far, so I begrudge continuing to pay them anything, I would rather the money go to the people I owe, particularly if at the end my rating will be no different if I just go the whole hogg and go bankrupt. Help!! [V]

[MelanieGiles]

First of all you cannot be in default with your IVA if you only owe £600 and your monthly payments are between £300 and £400. Why is your IVA therefore likely to be failed? I suggest that you offer a repayment plan to your IP - perhaps an extra £20 per month until the arrears are cleared would be sensbible, or if this is not possible ask for the sum to be tagged onto the end of the IVA therefore extending the repayment period by a couple of months.

If you decide that bankruptcy proceedings are a better option, the Official Receiver is bound to allow you sufficient money to live a modest life - which to be frank may well be less than you are currently paying into your IVA.

With regard to the monies you have already paid in, by law the IP is entitled to draw down his nominee's fees in priority to payments to your creditors, so there is nothing stange about that. It is a shame, however, that you do not feel you are getting good service from this firm - who are you using?

[penny.l]

Thanks Melanie. I am with Varden Nuttals, based in ALtrincham. I was made redundant in the first year of my IVA so had 3 months reduced payments - they have therefore said that I'm not allowed any more months of reduced amount otherwise it will be classed as defaulted and tehy will fail me. I am struggling to work out whether bankruptcy is better for me or not.


"If you decide that bankruptcy proceedings are a better option, the Official Receiver is bound to allow you sufficient money to live a modest life - which to be frank may well be less than you are currently paying into your IVA." - do you mean I will have less to live on than I do now in my IVA?

thanks

[MelanieGiles]

Hi there

I don't know anyone in that firm personally - but I bet I know a man who does!

Ian - is this another one for you to have a quite word? Sounds like a sensible variation would do the trick to avoid an unecessary bankruptcy.

[hymers]

good luck sincerely
you are doing the right thing by seeking this expert advice it may work out for you I hope it does
x

[penny.l]

I've now contacted my IP who have apologised profusely for the poor communication on their part. We have agreed an increased payment plan, which I think I can afford. I am so relieved I could cry!!

Thanks guys, your support is invaluable!!

PHEW!

[Reviva UK]

Well done & congrats!

[debbiw]

Great news Penny, hope things work out x