i am in an iva can i still go bankrupt?

[kallis3]

I do think that you need to speak to your IP and tell them of your situation now.

If you are not going to be able to sustain the IVA for the full period, it is probably better to let it fail now, rather than pay anymore money across to it.

[peterl]

i rent my house and we have a ten year old car.So not a great deal to shout about

[kallis3]

I would seriously consider bankrutpcy in your case. You have no assets, and if you had to pay an income payment agreement it would be over in 3 years.

[Michael Peoples]

I have to agree with Jan. It is more important to think of yourself and your family than your creditors. IVAs are wonderful instruments for people in financial difficulties but should never lead to suffering.

[peterl]

so the big question do i default and then file for br or do i inform the ip and take it from there?

[Michael Peoples]

Inform your IP of your intentions. As Jan said before if you stop paying the IVA you can set the money aside to pay for the bankruptcy. You will then have the necessary funds as and when the supervisor defaults or terminates your arrangement.

Given that your IVA is only four months old there will be insufficient monies to pay for your bankruptcy and creditors will not pay for it. Unless you petition yourself at the first available opportunity, you will be back at square one with phone calls, letters, etc.

[andrea]

hi peter thats who i am with what do you think about them sorry just wondering as i dont think they very helpful

[peterl]

just spoke to ip ref income and expenditure. No chance of increasing exp so my surplus is £175 per month,less than the £267 they require.If i apply for br i pay the £495 do i pay any other costs?They are going to do tech review of my situation but could take 3 months,any surgestions?????????

[kallis3]

You are obviously not going to be able to pay this Peter, so I would suggest letting your IVA fail so that you can go bankrupt. You only pay the £495 to the court, but you will possibly have to have an Income Payment Agreement depending on your disposable income after becoming br. This will last for three years. You will be discharged from bankruptcy usually after 12 months.

[peterl]

thanks jan that has helped me alot.one more for you do you know if they take your tax credits and child ben into account in br as that is £770 of the £1779 income i have.

[kallis3]

I don't know that Peter, I imagine they would as it is income. There are one or two posters on here who are or have been bankrupt. If they are looking in, they should be able to tell you.

[peterl]

thanks for the advice its all appreciated

[kallis3]

I hope you get something sorted soon Peter. Let us know how you are getting on.

[Skippy]

I don't think benefits are taken into account for calculating an IPA in bankruptcy.

Good luck with getting things sorted out Peter x

[MelanieGiles]

Skippy is right, but you also cannot have child related expenditure included, as the benefits are deemed to be paid to you to cover that.