I am in an IVA and it has been over 2 years now and am finding it difficult to make the payments due to the rise of bills etc.I did try to sell my house and had it on the market for over 6 months but unfortunately, the offers that came through were below what we paid for buying the house. I can't see it getting any better as the lease is around 74 years which devalues the house aswell unless i renew it which at present i cannot afford at all. In this situation if i do go for bankcruptcy would they take my house. Please advice
Hi Humaira. If there is little or no equity in the property it would not be at risk in bankruptcy unless the secured payments went into arrears. Given that you have paid for two years it may be possible to have your payments reduced which would avoid bankruptcy so you should speak to IP who could advise further.
Have you spoken to your IP about the difficulty you are having with meeting your payments? That should be your first port of call to see if you can complete a new I&E and bring the payments down. You shouldn't be struggling like this.
As you are almost halfway through, it would be a shame to have it fail now, and I doubt if your creditors would want to see that either.
As regards your house, it would depend on how much equity there is in it and how much your debts are as to whether it would be taken in bankruptcy.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
You definately ought to be chatting to your IP about the struggle to meet your payments. The most sensible option would be to seek a payment reduction to an affordable level, which may be able to be done at the IPs discretion, or alternatively by them calling a further meeting of creditors.
I am sure that you are not the only client in your IP's portfolio who is having problems at the moment.
The quicker you have a chat with your Supervisor the better. A Variation to your arrangement can be put forward based on your current disposeable income taking into account your total increased costs. Submit a new detailed I&E and let us know how you get on. Good luck.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
Thank you all for your views. I would definately speak to my IP. If they do consider to reduce my payments would that mean they would increase the time to more than 5 years to cover the remaining.
Possibly, and this is something that you ought to ask them. Usually, any extension of an IVA would need to receive specific creditor sanction, unless this was provided for in the original proposal which could be likely.
