I have been in an IVA for 2 years now. Although I am still meeting the payments, I am struggling, and more in the emotional sense than financially. My personal circumstances have changed considerably, mainly splitting up with someone after 5 years and then moving a long way from family and friends due to work. I want to move on and get on with my life, but feel totally trapped at the moment.
I am considering bankruptcy as I have no assets, but do not know if I would be any better off or feel any better...
Anyway, I guess my questions are as follows:
1. Can I petition for my own bankruptcy now or would my supervisor need to do that?
2. What happens to the IVA Contributions already made?
3. I understand bankruptcy income payments are normally made for 3 years, how much do they normally ask for? I have seen 60% of surplus income somewhere....
Would really appreciate some advice if you have done the same thing, moving from IVA to BR.
BR could be an option for you if you have no assets.
1. You can petition yourself, but check on your proposal to see if there is a clause about any funds being held back in case the IVA fails. Some have this, some don't. You will need to let your IVA fail by missing three monthly payments.
2. Your contributions made will have been used as IP fees initially and anything left will be distributed between your creditors.
3. An IPA will be made if your disposable income is more than £100 a month after your priority payments have been made. These are typically between 50 and 70% of the excess. If you petition now you will receive a nil tax code if you are working so that for the remainder of the tax year you have to pay your income tax to the OR.
Any other questions, feel free to ask.
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
Hi there - sorry to hear you're having problems. As you have been in the IVA for 2 years it would be a shame to let it fail. If there is a reason why you can't make the payments, you could ask your IP for a variation meeting to see if payments could be reduced.
Going BR after failing an IVA is possible ( hubby did that earlier this year), but it is a big step and you need to make sure you're 100% sure before going down this route.
If you read skippy's blog there's a chart showing the payment you may have to make in BR based on your disposable interest.
If you do decide to go BR, its not the end of the world and we'll all support you.
Either way, you should get all the advice you can.....oh and there's nothing to be ashamed of so you should change your user name [:)]
If there is a clause about funds being held back in the event of the IVA failing, then is this when I would need to let the IVA fail by missing 3 months? If the clause isn't there, can I just petition myself? Sorry if this was a silly question, I am confused [:I]
If there is a clause, then you need to speak to your IP to see if there are sufficient funds there.
Otherwise, just stop paying the IVA for three months and use some of the money from the payments as your court fees. You will then be able to petition yourself.
You will need a letter of non compliance from your IP, which you should get once the IVA fails. Most courts will want one of these before accepting your petition.
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
In addition to Kallis's advice - different courts have diifferent ways fo dealing with BR. Some you have to make an appointment, others you turn up and wait. So if you decide to go BR, its worth a phonecall to the clerk of the court to see what their procedure is and what documents they need from the IVA. Of course you'll have to complete the statement of affairs before attending court too.
Our local court had a 2 week waiting period, but didn't require any paperwork from IP.
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
Isn't it better to see if your IP could reduce the IVA payments to a more manageable level? Many people are faced with similar difficulties at the moment, but it does not necessarily mean the IVA has to fail with you made bankrupt?
