If the IVA fails is it automatic bankrupcy? We are in arrears of 3 months, as we were granted half payments to pay for car repairs. I go on maternity leave in May and will need a break from payments for 6 months. We are so worried that we won't be able to catch up. What will happen? Our supervisor hasn't reassured us as yet.
Not necessarily as you may not of paid enough to cover the bankruptcy fees out of the pot and unless it in your terms and conditions it is more likely that you will be back to square one again and the creditors will be on your back.
Usually once you miss 3 payments the IVA will fail and bankruptcy can be your option but be aware it will cost £495.00
Bankruptcy is fine for those who want it, or there is no other way out for them.
Some of us don't want to lose our homes, and some of us want to pay back as much as we can to our creditors.
Most people on here in an IVA do have bank accounts.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
A variation can be the answer for a payment break to cover your loss of income whilst on maternity leave. Discuss with your IP asap.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
With missed payments, you can either make them up by paying extra for a few months until you catch up, or by adding the payments on to the end of the term.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
kallis3 wrote:
With missed payments, you can either make them up by paying extra for a few months until you catch up, or by adding the payments on to the end of the term.
Hi, thank you. That sounds a bit more promising then as have been worried about losing our home if we were forced to go bankrupt. We are half way through, but it has been such a struggle already and would be a disaster if we lost it all now! We really need help with budgeting as husband gets paid weekly and from that we have to put money aside for car repairs, dentist, optitians etc. He only gets £200 per week and we have to do the shopping from that too and petrol!
