www.iva.co.uk

Hi, I am currently in an IVA but have just lost my job. I think that bankruptcy is the next best step for me. Can I do this and how do I go about it. I have no assets to my name

Hi jodo, I would contact your IP in the first instance and talk this through with him/her as there are ways to avoid bankruptcy with payment breaks etc., However, if you're sure this is the way forward for you, contact your IP and let them know of your decision and they will possibly help guide you down the right tracks with the process.

Hi
If you know that this is the correct route for you then stop paying into your IVA and save towards the bankruptcy fee, 600 pounds from April
Regarsd

Hi Jodo,

I would agree with Lesley;

If you want to see your IVA through to the end I would recommend that you contact your IP and advise him/her of your current situation. Your IP can then request a payment break, which will provided you with time to find a new Job before resuming payments towards your IVA.

If however as Andy has said you have decided you do not want to continue with your IVA and would prefer to go down the bankruptcy route then I would again recommend that you contact your IP and let him/her know. Once you have missed 3 months payments your IVA will be failed and you can petition for your bankruptcy.

Hope this helps and good luck in whichever option you chose

Sounds as though BR would be the best thing for you.

Take advice from your IP first though.

How long has your IVA been running.

If your IP is informed that no more payments will be made into the IVA then they can fail it straight away!
Does this still take three months? - or will you get creditors calling very soon after the immediate fail?
This could affect a timetable for going bankrupt - avoiding the hounding.

Regards

Hugo

I think you can ask them to fail it straightaway if you are not able to make payments any more.

You won't get phone calls until after the three months.

However, if you are intent on doing that and you can get a court appointment within the next couple of weeks, I would suggest doing so as the fees go up from the first of April.

You do not have to wait for three months missed payments before your IP can fail the IVA. You can advise your IP that you are breaking the contract on the basis that you do not intend to pay any further contributions and they can then commence closure procedures.

Are you then immediately open to creditors again?

regards

Hugo

As soon as your IVA fails, regardless of whether it is you or the IP who does it for you, then you will be back to square one and the creditors can start to contact you again.

If you go bankrupt you are protected from creditors just as in an IVA. It might be better not to fail your IVA straightaway as this will give you time to save up the fee while still having the protection of your IVA.

It's the bit inbetween that might be a problem.

Fees are going up next month so might take a bit longer to save up.

So to clarify -

If your IP failed your IVA after one missed payment because they knew no more payments would be forthcoming - from that moment you would be open to creditors again - not waiting 3 months for missed payments?

Regards

Hugo

As far as I am aware, once an IVA has failed, and a failure certificate has been issued, your creditors are free to contact you again.

That is correct Hugo and Jan