I have been in an iva for a year and am now waiting for my review which they asked for in November. My worry is that I have 130. owing on catalogues and 160. on a credit card. Will this go against us. I am seriously considering going bankrupt now to get it all out of the way as I am fed up of feeling like I do.
Is this credit that you have run up since taking out your IVA? If so, you could be in breach of your IVA as you shouldn't take out further credit without permission of your IP.
One of the professional experts will be along to advise further shortly.
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
If this was credit taken out whilst in the IVA you will need to discuss this with your IP as soon as possible. Do you have anybody who could pay these for you?
The amounts are relatively small, and although you may have breached the terms of your IVA, by simply missing an IVA payment to repay these accounts, then asking them to be closed, would probably preserve the position for the creditors bound by the IVA - you of course would have to make up the missed payment over the term of the IVA or at the end.
Yes - speak to your IP before deciding anything. Why do you consider bankruptcy now? As Melanie says the new credit is relatively small - ask your IP if you can miss one or two payments - pay off the new credit - cut in half these new plastic cards and start budgeting properly and discuss ways to make up shortfall.
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.
Cut that card in two now - that way you won't be tempted to spend anymore on them. I'd consign the catalogue to the recycling as well!
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
It was a staff discount card that turned out to be a credit card. I used it because I was struggling to meet payments on the IVA. The card company closed the account and moved it to a debt agency and the catalogues I can pay off. My problem is I am struggling to pay this £298. every month so to delay sorting it is not helping me.
You do need to speak to your IP as soon as possible to inform them of this. You also need to tell them that you are struggling to pay your IVA. Have you been struggling since the start? It may be that your payments were set too high to start with.
You could ask your ip for a variation to lower the payments.
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
It sounds like there needs to be a general reassessment of your situation, in order to get your finances back on track. As you say, if you have reverted to unauthorised credit, it does sound as if your IVA payments are too high at present.
I know that I need to speak with them but, I really can,t see any way forward than bankruptcy now. I have hated this past year of watching every penny and trying to stay within the guidelines of the IVA. I sometimes think bankruptcy would be better all round as I can then be free of it all and start afresh with no lies to my family.
If you have no assets and really feel that srongly about it, then perhaps bankruptcy would be best. That way all of your debts would be incorporporated and you could, as you say, wipethe slate clean.
You will need to let your IVA fail which normally means missing 3 payments. Once you have done that, then your creditors will be chasing again, but it shouldn't take long to get a court hearing.
The payments you miss can go towards the court fee for bankruptcy, which is currently £495. You can fill the forms out online.
If you look at this site, it will tell you all you need to know.
Speak to your IP first though.
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 can only try so hard, but when things become tough and this actually starts to affect your quality of life, then bankruptcy can actually be a blessing - and these days you can probably be discharged within the first six months if you have no assets or other complications.
At the end of the day you need to discuss matters with your Supervisor (IP) ensuring that what you are paying having regard to your outgoings is correct in todays economic climate. Remember going Bankrupt might entail you having an Income Payments Agreement for 3 years (probably up to 50% less than what you are paying now) - however there is no substitute to discussing everything with your IP. Good luck and keep us all advised.
Last edited by David Mond on Wed Jan 07, 2009 2:20 am, edited 1 time in total.
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.
However, if you had to pay an IPA, you would still be free in less than 5 years, although your credit record would still remain totally shot until 6 years from the date of the 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
