how do I go for bankruptcy and what happens.

[peanuts]

I am in an IVA and have been since Nov 2005. In Nov 2006 I had my payment reduced and my term increased to 6 years. I am now struggling to manage and would like to know how I go for bankruptcy and what happens. I have been to CAB and they were somewhat helpful, just not sure if bankruptcy is best thing, but doubt my IVA will be reduced again without further years added on.

[MelanieGiles]

Hi peanuts and welcome to the forum

You can petition for your own bankruptcy whilst you are in an IVA if you feel that is the best way forward for you. This will cost £485 - which you now need to have available in cash - and the application is made at your local County Court. Unless you have moved house during the IVA, the Court will be the same on as was used for the IVA. You can download the bankruptcy application forms from the Insolvency Service's website.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Oliver]

If you feel that you can no longer afford the IVA payments agreed to the first thing to do would be to contact your IP to see if there is anyway these can be reduced to an affordable amount. If this can not be done you can stop paying into your IVA. You will then either have to pay the money to go bankrupt or wait until one of your creditors petitions the bankruptcy for you (which means that they will pay the fees, but would be fairly rare unless you had assets they believed would be worth pursuing in bankruptcy).

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[iva_squirrel]

Hi peanuts,

I agree with Oliver.
You should try to countact your IP, maybe he can find a good solution for you without having to stop your IVA and going for bankruptcy.

Regards,
Michelle P.

[peanuts]

Thanks for your advice.

I have already had my IVA reduced once and that meant increasing my term. I am worried that to have it reduced again will mean further additions to my years with the IVA, which I don't particularly want.

According to the terms of my IVA there is a section stipulating that my supervisor is to hold fees back shoudl I ever need to petition for Bankruptcy - Ie if I fall more than 60 days behind with payments.

Hence I am wondering and have been advised to just stop making payments, so that bankruptcy will go through?

IS this correct advice or bad?

Thanks

[MelanieGiles]

It is an option that is available to you - and as the other experts have said you need to discuss this with your own Supervisor for specific advice.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[peanuts]

Hi,

I have now spoken to my supervisor and they have stated that they have the money to petition my bankruptcy, and that I should think about it then let them know. they did advise that as I have no assets that BR probably best option. What happens to my bank account when going BR? Will it be frozen? If so what happens to all of my DD for rent and bills etc and my wages?

Thanks

[MelanieGiles]

Your bank account may be frozen upon the making of the bankrutpcy order, but so long as your bank agrees that you can continue to hold an account there this may not be such a problem. Do try and make sure that there is no money in the account on the day you go to Court, as this will be taken and used to pay your creditors.

You will need to make arrangements with those people you regularly pay by direct debit to pay the instalments by cash until the position regarding your account is more certain. Pay particular attention to insurances, as you cannot risk not having cover for your car or house contents.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk