Hello. I have wondered if changing to bankruptcy would be a better option force ?

[emma21]

Hello. I am currently 17 months into a 5 year IVA. I pay £150 per month. My circumstances will be changing this summer, whereby my oldest son leaves home and i am moving in with my partner. I will loose all my benefits (housing benefit etc) due to my partners salary of 35K. I will probably work full time at this point. I am concerned that my partner will become liably for my IVA in some way, although my IVA company have advised this wont be the case. I also dont really want to have to pay more into my IVA than i already am. I have wondered if changing to bankrupcy would be a better option for me. Please can you advise. Thank you

[luluj]

Your partners income will need to be taken into account purely to assess the allowances set in your IVA to ensure you are both paying the appropriate share into the household expenses. Your partner will NOT be liable for your debt and it will not have an impact on his earning - his money remains his money.
If you are already 17 months into an IVA and you have the ability to work full time come the summer when your circumstances change I see this this as a positive move to support your IVA in the long term....I really would think twice about changing to bankruptcy personally.
You could speak with your IP and seek reassurance on your different scenarios now so that you can plan ahead for your future.

[ginger323232]

Emma - no one will advise you what you should do - that has to be your decision - but as with any debt solution there are Pros and Cons - so you should seek out all the advice you can get about bankruptcy, before making a decision

[pennieless]

Hi emma, im not up on bankruptcy to much but believe if you have excess funds every month you will pay into bankruptcy for 3 years therefore might be wise to stick with your up and running iva.

[GilliB]

Hi emma21. Welcome to the forum. Sounds like you could do with some expert advice for a comprehensive assessment of your current/impending circumstances. Pennieless makes a very good point, as you would probably end up paying a similar amount in bankruptcy as you would if your IVA continued. You still have a few months before the changes occur - time to explore all the best possible options. Good luck. x

[UpToMyNeckInIt]

Hi Emma,

Some good advice here.

I think I see where you are going with this.

When you move in with your partner, and start working , your net income (and thus your IVA payment) will increase significantly. (I am assuming as well that you will no longer be paying rent at your existing home).

Assuming you have no assets, BR may be worthy of consideration (and with hindsight might have been a better option in the first place). However, you will have another 6 Years of poor credit rating to put up with if you go down that road now.

So it may be better to pay 50% of your income increase into the IVA and your credit rating will be restored in 3.5 Years time.

Another sneaky option is to move in with your partner, but as his 'lodger', and pay rent, so that on paper you still have rental outgoings.

[Shining]

It could be when declaring bankruptcy that the amount paid into this exceeds or is similar to that of your IVA for a further 36 months therefore not really achievening anything as you're coming up to 2 years in the IVA now. Do think long and hard what will be best.