www.iva.co.uk

what happens if you have been paying an agreement for 3 years and then become unemployed with 2 years remaining to pay?

You need to speak to your IP straightaway.

Were you made redundant???

Simon, are you referring to an IVA or a loan or HP agreement?

i left due to a re occuring injury which meant i could not do my usual job.due to the current crisis all over finding a job to suit was difficult.i decided to move abroad to look for work but made sure that i had an account in the uk to continue my iva which i have been doing.things are getting hard here now and i am finding it more and more difficut to find the money,working cash in hand to make the rent... any advice would be gratefully taken on board.i.e bankcrupcy and if this happens are there any legal implications... thanks simon

Hi Simon

So sorry you are having such problems when youre obviously trying so hard.

You could try to reduce your payments on the IVA, things change and 5 years is a long time, they may be able to help you through it with reduced payments.

If you cannot maintain it all and know for sure its not going to work then BR is really the next step. I dont know of any legal implications, I am not a professional expert, just another person dealing with debt. BR is a quite straightforward way of dealing with debt, its daunting but not as bad as many people think its going to be. Any assets over 3K in value may be lost, you pay rent so I am assuming you do not have a property. If you have a surplus of £100 after your income and expenditure figures, you may have to pay into an IPA for 3 years. The allowances are higher than they are in an IVA.

You really need to speak to your IP, or email your IP directly, detailing your problems first and foremost, you can find details at www.insolvency.gov.uk.
I hope this helps.

If you have paid three years out of five, and have no realistic prospect of making any further payments into the IVA due to lack of income, then your IP could propose a variation on the basis that creditors accept what they have received to date in full and final settlement. It is worth a try, failing that I would give serious consideration to bankruptcy proceedings.

Or a temporary DMP until you get on your feet again