Can I do anything to avoid bankruptcy ?

[Mick.99]

My IVA variation has been rejected, and now I have a letter of failure. My son has offered to take out a loan to offer a one off final payment to the creditors. If this fails, is the only option bankruptcy ?? I want to pay something back to the creditors, but I work for myself and money doesnt always come in when you want it to. My main payments are for food, mortgage, transport to and from work and then if anything left pay into IVA. It looks like the IVA is finished, can I do anything to avoid bankruptcy ??? Thanks

[Niobe]

Hi,

Hopefully the full and final will be accepted. If not then you can always revert to a debt management plan rather than bankruptcy if you wish.

[Michael Peoples]

If your IVA has been failed you will have to propose a totally new IVA based on a one off payment. If the IVA has not been failed another variation will need to be called. What have you to fear from bankruptcy and why was the variation rejected?

[terrytibs55]

It seems like a clear case of the IVA company increasing the monthly repayments when the customer has no extra income to meet this. A trick that all IVA companies do to try and get more money from you.
Go bankrupt, at leat that way the debt gets sorted out and your not stuck paying into something you cant afford for 5 years or more. You may still have to pay something back in bankruptcy but its only up to 36 months.

[Skippy]

Terry, I don't think you can say anything is a clear case as we don't have the facts. Nor can you tell someone to go bankrupt.

Mick.99 needs to take advice before making his decision.

[terry d]

trouble is i thought i took the right advice and went for an iva but soon realised that bankruptcy was my only option or course any iva company will try to stear you towards an iva if it looks like you have any D.I at all,but as the cost of your bills/fuel/rent/morgage/food etc etc go up and most peoples wages stay the same,after reading hundreds of posts on here you find quite a lot of people getting into trouble with their iva or the iva completly failingwhen if they would have chosen bankruptcy their debs would be long gone by now,bankruptcy is not a dirty word its a god send to some

[Skippy]

Yes it is a Godsend to some people, but without knowing the details of the OP's situation we can't say that they shouldgo BR!

I disagree that any IVA company will steer you towards an IVA. It's important to take advice from several companies and then it's down to the individual to weigh up the advice and make their decision.

Also, you need to bear in mind that the nature of the forum means that we often hear from people who are struggling with their IVAs. Don't forget that there are thousands of people who we don't hear from who are happy with their IVAs and see them through to the end.

[terry d]

if an iva company can stear you towards an iva where they will made a profit then steering you towards bankruptcy they will,then i first enquired about an iva i rang 9 companies all said iva was the best way forward for me,are you telling me that all 9 companys got it wrong and should have told me to go bankrupt,wheres theres money to be had some companys will tell you anything

[Skippy]

We're going to have to agree to disagree on this Terry. Telling someone to go BR without taking advice is irresponsible and I will always tell someone considering an IVA that they should speak to 2 or 3 companies before making their decision.

[terry d]

i take your point of course i do,people have to take advice but not from an iva company,from a neutral body who can really look at their income and expenditure then tell them what to do for them

[Skippy]

Who do you suggest they contact? And no one should be told what to do, they should be presented with the facts so they can make an informed decision themselves.

If they do speak to a 'neutral body' and they tell them what to do that's no better than your original scenario with the IVA companies!

[Adam Davies]

Hi

Bankruptcy may be an option but no one can say for sure without all the facts

Quote" A trick that all IVA companies do to try and get more money from you"

There are no tricks with IVA companies Terry, they are heavily regulated and audited. Insolvency Practitioners are duty bound to recover as much as is reasonably possible as is the trustee in bankruptcy.

Regards

[terry d]

to sum up,there are some very good companies out there for iva,s and some bad,just how do you chose the correct one,thats my question,phoning 20 companies might help,but a neutral body to guide people to the best ones would be a solution,not just hearsay on this forum,like a which mag for iva,s

[Skippy]

Sorry, I disagree that this forum is like a magazine for IVAs! Surely if it was any posts that are anti IVA (like yours!) would be deleted?

Anyone who is considering an IVA can look at www.iva.com for reviews of companies.

[terry d]

you read that wrong,im saying have a magazine like which for iva,s