www.iva.co.uk

I currently pay £104pm to my iva, my tax credit have gone down by £150 (4 weekly) so I can't make my payment. I have spoken to my iva company who have suggested I either earn more or spend less to make my min payment (£89 pm) but that just isn't an option, so they have suggested a 6m break so 'we can see what happens, as they would hate for me to fail my iva' but I know nothing will change so do I have to take the 6m break or can I deal with this now?
What does fail mean, is that bankruptcy?
I'm not sure if it makes a difference but it's my iva only but I am married so our expenditure is split 60/40 (hubby pays 60) and tax credits just about pays our nursery fees

If you cannot make the payments the IVA will fail and you will be back to square one with your creditors. They will add back on the unpaid interest and will then expect payment.

You will need to seek an alternative means of dealing with the debts.

If you own a house and there is a good amount of equity the creditors might go for bankruptcy, but this is not always the case.

You don't have to take the 6 month break, but it can give you time to explore options.

Thanks for the reply, no mortgage we rent and no assets, I knew at the time I should have gone bankrupt but they said IVA was best, feel like that's almost 3 yrs down the drain #128542;

How much do you owe ? On the reduced income you might qualify for a Debt relief Order, if they are under £20,000 ( after October when the new limit comes into force).

I think it was about 25k (it was definitely over 20k)

Is there no way that anyone could lend you £1k as that is the amount to make a full and final offer?

2 years left .. more like £2k for a full and final ---- but, in the circumstances £1k could do the trick. If not possible, if failure looks to be the only option, discuss asking for creditors to accept payments to date to close it down rather than fail it through no fault of your own.

I would explore a f&f of £1-2k depending if you have family or close friends who maybe able to help with this. Bankruptcy maybe your only option but explore all other avenues first.

Hi Jones. It would be a shame for you to terminate the IVA now only to find in 6 months time you have found a new job and are back on your feet again. Personally I would take the extension to give you time to see if you can put together a F&F from family/friends or find new work. You do not have to wait the whole 6 months, you can change your mind in the meantime if things definitely don't work out. Then if a DMP doesn't apply to you and your IP does not bankrupt you then consider making yourself bankrupt for £705 (this may be lower if you receive certain benefits at the time).

Hi

I wonder if creditors will accept payments to date as a full and final settlement ?

Regards

Andy - good shout I normally recommend that too but forgot! Glad one of us is awake today.

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Foggy

2 years left .. more like £2k for a full and final ---- but, in the circumstances £1k could do the trick. If not possible, if failure looks to be the only option, discuss asking for creditors to accept payments to date to close it down rather than fail it through no fault of your own.

err ... cough [:D]