IVA and job loss

[kiki]

Hi,
i had an iva agreed a few months back, but two and a half months a go was made redundant, i have been taking the standard three month payment break with DFD but that is up very soon and have been unable-despite my best efforts to get another job.
I have no assest like a car or home, and was told ages ago i could go bankrupt but wanted to try and pay back my creditors, does anyone know if i can go bankrupt if the three months are up and i cant make the iva payments, im really worried about it
thank you for reading this
kiki

[kallis3]

Hi Kiki,

Sorry about your job loss, and the fact that you can't get any further work.

You have tried your best to try and pay your creditors, and it is not your fault that you are in this position.

Phone DFD and ask them to fail your IVA as you have now missed three payments. When you get the notification, make an appointment at the court and you can make yourself bankrupt.

[rayb]

Also to add as you are not working I do believe you pay a reduced amount to make yourself bankrupt instead of the usual £495.00

[kallis3]

I believe you are right Ray. I'd forgotten about that.

[MelanieGiles]

Once you are in default with the IVA payments, then your IP ought to serve you with a default notice which you can use to support your bankruptcy application. Given that you are still out of work, and have no assets which would be effected by bankruptcy proceedings, this could well be the best option for you now.

[kallis3]

Kiki,

I have deleted your new thread as it is basically a duplicate of this one, which has mostly been answered.

All DFD will do is fail your IVA once the three payments are missed and you will be back to square one and able to apply for bankruptcy.

[emma_t]

Good luck kiki,

All anyone wants to do in an iva is try their hardest to repay what they can, and you have done that and now cannot continue.

Do not worry about going for bankruptcy as lots on the forum have been through it and will advise further as you go through the process.

[:)]

[David Mond]

You can complete a bankruptcy application on line at the Insolvency Service Web Site

https://www.insolvencydirect.gov.uk/isolv

[kallis3]

The court fees are usually £495, but I believe if you are unemployed, these are usually less.

[Notsowiseone]

In my report, it states that the IP will have £750 put aside to petition my bankruptcy should the need arise. Does that not happen in all IVAs? What happens to that money if they never have to use it?

[kallis3]

No it doesn't. Mine does not have any provision for this.

I presume if it is not needed, that it is paid across to the creditors.

[Michael Peoples]

If it is a condition of the IVA your IP should bankrupt you but he/she could ask creditors and if, after fees, the money was still there it would be distributed to creditors. Unfortunately you would be back to square one as if the IVA was never there in the first place. Given that your IVA is quite recent it is unlikely that there is the money to bankrupt you as the nominee fee is unlikely to have been covered never mind the first year's supervisory fee or statutory costs.

[David Mond]

In most current protocol compliant IVA's there is no clause regarding bankruptcy and there is a usual provision for your Supervisor to write to your creditors asking them what they would like to happen. If there is no money left in the estate then it will be doubtful that your Supervisor will pay himself to bankrupt you - it will probably be left to a creditor to initiate it

[kallis3]

Or you can always petition yourself if it is the only option left to you.

[David Mond]

Yes you could do Bankruptcy yourself - visit:

https://www.insolvencydirect.gov.uk/isolv/