Hello, i started an iva in 2006 but now after almost 5 years my iva has failed because i couldn't keep up with the payments. when they initally started they were at £200 a month which i could just about manage, but the proposal was to increase payments to £330 then £440 but this was unrealistic. i could only afford £200. so now my iva has failed and i dont know what to do? im in rented accomodation and have two children under 5. i only work part time and dont have a great deal of money but i tried my best to pay what i could. the cost of living has increased dramatically in 5 years and i think this contributed to the fail. i'm so lost and confused, it seems most of the money i have paid has gone to the ip company.Any advice would be greatfully recieved thanks Amy
Hi Amy & a warm welcome to the forum from me.
Im so sorry to hear that you got this far & your IVA has failed.
As you have no assets & reading your circumstances I really feel that Bankruptcy could be a solution. You have tried your absolute best to pay for your debts & it seems as thought its been taken out of your hands.
There are members on the forum whom have gone the BR process & it really is not as daunting as it sounds. After enduring a IVA for the time that you & then for it to fail, I would see it as you have exhausted all your options in trying to pay your debts back.
Hang on in here for some more advice from others whom are more knowledgeble than myself, as this is the right place for you to be at this time.
Last edited by MrsKnight on Thu Mar 10, 2011 1:52 pm, edited 1 time in total.
Final IVA payment made in April 2013, never ever thought we could do it or get through it but we did! X
An IVA.co.uk Mentor is someone sharing from their experiences of dealing with debt
Hello Amy and welcome, surely after almost 5 years, your IP would be able to put a case forward to your creditors to accept what you have paid to date as a F&F? it seems an absolute shame to get this far and it fail now. Have you spoken with your IP? have they reviewed your I&E regularly?
surely at the yearly reveiw your shortfall in income would have been picked up.
what reasons did your ip give for increasing you payments.
as lem says your circumstances have changed greatly since your original proposal was worked out so ask your ip to put forward a "paid so far f@f"
who was you ip firm?
dont give up yet and tell them you want to propose a settlement on whats been paid
cc received 6th January 2014 now upwards and onwards
It does sound like bankruptcy is the best option but check and see if your IP will pay for it if the IVA has not been failed already. It is a pity the IVA could not have been concluded based on payments to date but perhaps it is time to move on once and for all.
well i kept telling them i couldn't manage the payments and after everything had been paid like rent etc £200 was all i had left. Then i got this letter saying my iva had failed and the £500 for bankrupcy was to go back into the fund, which in the original agreement they would site bankrupcy if the iva failed. So i'm not sure what will happen next? all the debt has been taken over by max recovery and so far all my contributions add up to 12,000. i think the original debt was for 19,000. i feel so down just as i thought i was getting my life back i'm back to square one. i didnt want to go b/r because i wanted to try and pay my debts back as much as possible.thankyou for all your kind advice. amy
Sorry to hear your IVA failed - it sounds if you tried your best to pay back the debt - thats all anyone could have asked for.
You havent failed - the iVA just did not work for you!!
Once all the bankruptcy paperwork is done - it will be time to move on!
Have a look at some of the blogs - on here, as there are a few people who post whose IVA have failed and they have had to undertake bankruptcy.
am i missing something here?
i thought the iva company was supposed to manage her iva and work out what she could afford to pay.
this has been running for 5 years and now they decide to fail the iva?
if her dissposable income was £200 then thats what she should be paying.
the ip is supposed to manage this side of it so as to pay back the creditors the maximum she can afford.
either amy.tw is not telling the whole story or the iva firm has not run this account very well.
why should she go bankrupt right near the end of the term when she has paid £12,000 in on a £19,000 debt.
give us some more details amy.tw and we can have a proper look at the case.
cc received 6th January 2014 now upwards and onwards
Hi Amy, just catching up on the comments.
You have done everything in your power to repay your debts through an IVA. You have done extremely well to get so far in your IVA & for it to fail at the stage you are at must be devastating.
Obviously we dont know the full ins & outs of your IVA, but if it has completely failed, then in my view Bankruptcy could be the best way forward. When applying for Bankruptcy it always a last solution for many of those whom go through it. They will be able to see that you tried your best, I think they would be sympathetic to your situation regarding the length & failure of your IVA.
As you have no Assets to protect & little ones to think about, you could save up the fees & apply for Bankruptcy yourself & put this all behind you & look forward to the future knowing you tried your best.
Have a word with your IVA company & find out exactly what they have done with that 500 & ask for a break down of whats been paid & were you stand now. Keep posting - your in good hands on here.
Final IVA payment made in April 2013, never ever thought we could do it or get through it but we did! X
An IVA.co.uk Mentor is someone sharing from their experiences of dealing with debt
Hi Amy - this seems senseless! Were the staggered payments part of yur proposal or were the uplifts requested as a result of annual reviews? If the IVA hasn't been failed yet, could you suggest a variation of making an additional 12 payments or offer a lump sum as a full and final or even just continuing to the end on your current payments? Have these options been discussed? xx
I don't understand where the jumps in payments were coming from? Were these drafted into your IVA proposals and, if so, how on earth did they expect you to fund them without a substantial increase in income?
the payments were part of the iva, the reasons were things like my daughter being out of nappies, but i had another child.our income has stayed the same but everything has increased over the years, like the council tax, our rent, food and household bills. i sent all the increases on the yearly expenditure with proof but nothing was said about it. To be honest i'm not as clued up as i sould have been, i've been reading things on here and i really didn't know half of what i know now. my sister had a baby who was born with renal failer 18 mnths ago and that has been our priority. i didn't realise how much money went to the ip company almost £6000, when i took the iva i was just so relieved i didn't have to worry anymore. the spiral into debt was so fast, i lost my job and then found unexpectantly that i was pregnant so as u can imagine no one would employ me. i was young and stupid and i let things get out of control. thankyou for all your kind words and advice it's nice to know other people have/are going through the same experience.
Hi Amy, you don't need to worry about the fees. They sound about right and it will be your creditors who pay them out of the debt they write off.
It seems incredibly risky to predict I&E changes in a proposal and incredibly poor management not to call a variation as soon as you couldn't meet the required uplift. But none of this is your fault. Other than the lucky few who find this forum before embarking on the process, we are all at the mercy of the professionals who advise us.
Has the IVA actually been failed or are they in the process of failing it?
yeah they have failed it, i got a letter the other day. i didn't know that they had called a meeting to decide. i started to get behind in my 3rd year, my payments had gone up to £330 but it was way to much to manage. my hours were cut at work which didn't help, i got phone calls from my ip company and i told them i couldnt afford the increase payments but could do £200. There was no way i could do £440!!! that was my months wage!! my priority was keeping a roof over our heads and feeding my children, i dont go out, smoke or drink cause i cant afford it. i have never even taken my children on holiday. i'm scared now cause i dont know what will happen next.
If it has been failed then you will be back to square one with creditors chasing you.
You could do a debt management plan or look at bankruptcy but I'd seek some further advice from another expert before deciding on your next course of action.
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
