I've not been able to keep up the payments on my IVA, I've missed 3 payments, mainly because of illness. I've been quite ill since I took out the IVA and do not get sick pay from my employer, I know I shouldn't but I had to borrow to survive, I also struggle to meet the payments when I am working because the monthly payment was set higher than I was told it would be, I was told £300 but have to pay £360. I don't know what to do next, it has been suggested that my best option is bankruptcy, but is there anything else I can do?
Have you spoken to your IP about this? It may be that your I&E is set too high and needs to be reviewed and your IP may possibly be able to authorise a longer payment break if you still have health problems.
So sorry to read of your difficulties, I agree with Niobe contact your company straight away. Maybe one of the professionals on this forum will have some advice
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Niobe
Hi and welcome to the forum.
So sorry to hear of your problems.
Have you spoken to your IP about this? It may be that your I&E is set too high and needs to be reviewed and your IP may possibly be able to authorise a longer payment break if you still have health problems.
No payrise, Harrington Brooks said they would get the repayments set at £300, but it was changed by one of my creditors,
I'm worried about bankruptcy for a couple of reasons:
I was let some money from a friend, this was before the IVA, if I go bankrupt I won't be able to pay him back.
How many of my assets will I loose, I don't own my house, the only items I have of any real value are my car and motorbike.
Yes, creditors do sometimes "tweak" the figures, but the figures shouldn't have been so tight as to cause these problems.
As for your friends loan --- the situation in BR would be no different than in an IVA. Technically the loan should be included in either. But as an undeclared debt ( whatever the rights and wrongs) it makes no difference.
If the creditors can get anything worth getting from the sale of either the car or motorbike they might force a sale. Generally a modest vehicle can be retained. I doubt though you could keep two.
As for the here and now --- Hopefully, you have the clause in your proposal whereby your IP has the discretion to reduce your payments by up to 15% without going back to the creditors --- if so they could knock the payment down to around £310. Worth checking.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
If you need the IVA payments to be reduced, if you are not affording them currently, then your IP will be sympathetic and ought to be willing to propose a variation of terms with your creditors - which ought to seek forgiveness for the missed payments.
At times like this, ongoing communication with your IP is a must - you are with a good firm and they will want to assist you through these difficulties. Bankruptcy might be the best option for you, but make sure you explore all of the possibilities in the meantime.
Thanks for all the input, much appreciated, still not sure what to for the best. The other confusion I find is that some people say that bankruptcy can last for 3 - 6 months, others say 3years, getting clear advice is very difficult. I tried talking to the CAB, but they don't want to know because I have an IVA, same goes for Pay Plan.
Pete, your confusion about time spans in BR is possibly because, when made bankrupt, you are, these days often automatically discharged after 12 months ( sometimes sooner), but, although discharged you still have to maintain payments under any payments order, if one is made -- these can last up to three years. Both of these timescales depend upon the circumstances of your bankruptcy and your compliance with the process.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I've now found a government site that explains everything to me. I can't see any advantage of going bankrupt compared with resuscitating my IVA. There are too many unknowns with bankruptcy, like how much the IPA will be, and if that lasts for 3 years then life will be just as much of a struggle as it is now, and I stand to loose some of my assets.
I suffer from ill health, I have mental health problem, heart problems and I'm diabetic, so life's hard enough without all the restrictions a bankruptcy would place on me.
