I am currently 36 months into an IVA. My payments have recently been reduced as I've had to take a lower paid job following redundancy. My IVA has been extended by 12 months to compensate. I'm still struggling to maintain the new monthly payments and my house is in an increasingly bad state of repair and I'm unable to afford to pay for repairs to the roof, electrics, plumbing etc. I have been considering bankruptcy for the last couple of months as I can't afford to stay in my house and if I go bankrupt at least I can move into rented accomodation. But I don't know if it's possible to go bankrupt from an IVA, if it's the right thing to do or how to go about it. Is there any advice you can offer?
If you miss 3 payments then your IVA will fail and you will be able to declare yourself Bankrupt.
You can use the money you save from the 3 payments to fund the cost of it.
Good luck and please ask if theres anything else you need to know x
Last edited by Lisa2009 on Mon Nov 23, 2009 9:22 pm, edited 1 time in total.
Check your proposal/chairmans report to see if it says anything in there about funds being retained to fund bankruptcy as some of the olders ones do. This means that you wouldn't have to find the money yourself.
Speak to your IP first and explain that you are struggling and see if they can give you any other options.
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
If your IVA was varied to accomodate a change in circumstances, and you are still struggling, then it might be time to give bankruptcy proceedings a sensible consideration - which your IP ought to be able to help you with.
I think it is fair to say that we are all seeing more cases failing at the moment, due to job losses or work hours being cut - and there really is no point putting yourself in a miserable state simply to continue with an unaffordable arrangement. Have a chat with your own IP to see what they would adviwse given the circumstances.
