Is bankruptcy as scary as what it seems??

[Toonster]

Hi everyone,

Im currently failing my IVA as i have lost my job and been out of work now for 3 months, i told the IVA people and they were ok at the time but now im getting letters asking for my past 3 months payslips which obviouly i cant produce as i havnt been working. They've tried to ring me since but im too scared to answer the phone incase they talk down to me. Im even considering bankruptcy but im absolutely petrified about mentioning it to the iva folks....HELP!!!!!

[Skippy]

Hi Toonster. The first thing I would speak to your IP - there may be something they can do to help you. You would be best to keep them in the loop. Please don't be scared to speak to them - the longer you put it off the worse it will seem. How long have you been paying into your IVA?

Regarding BR, no, it isn't as scary as it seems. I did it in March this year after I could no longer afford my IVA repayments. I have posted the whole story in my blog.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[pippa]

Hi Toonster

You need to discuss this situation with your IP. You can petition for BR at any time and do not need their permission, but I would seek their advice first about your existing IVA and any other options.


Pippa

[Toonster]

Hi skippy, ive had my IVA for 12 months so far.
What happens if i file for BR as ive lost my job and then get a new job in the meantime, would they refuse it and also would my IP expect me to pay them out of my 1st wage - only asking because ive been for an interview for a job which is looking very promising but as ive been unemployed for 3 months im behind with the rent and owe my parents a £1000!!

[Skippy]

I would suggest that you discuss this with your IP - if there is a good chance of you getting a job fairly soon they might be happy for you to tag the missed IVA payments onto the end of the arrangement.

Regarding BR, if you were to go BR it is highly unlikely that the petition would be rejected. I am working, and I have a reasonably well paid job but I went BR - it doesn't matter about the job, it's whether you can afford to repay your debts. If you decide on that course of action you wouldn't have to pay your IP from your first month's wages as you would need the money to pay your BR fees. Also check the wording of your IVA - some call for the IP to retain enough to pay for BR, but it would depend if you have paid enough into the IVA to cover the IP fees.

Before you do anything else you really do need to speak to your IP - one of the questions that the judge will ask if you go BR is whether you have taken advice and know the implications of BR.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[Toonster]

I will speak to my IP tomorrow and see what they suggest, also i will have to dig my agreement out to find out whether the cost of BR has been covered. Thanks for the advice and i will post updates as soon as i have any x

[Adam Davies]

Hi
The cost of bankruptcy will have to be met by you,almost certainly.Do not feel worried about speaking with your IP as you have done nothing wrong.
regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[Darren]

Hi there Toonster i thought when i went for my IVA that the first few months payments toward my IVA were going to be put towards a Bankruptcy if i failed....so it wouldnt cost the creditors to make me bankrupt if i messed up...i dont know for sure but i read it some where im no professional but worth reading the agreement again???????

B word not as bad as you`d think ? (im gonna find out soon)Since found out and turned out great!!!

[Adam Davies]

Hi
Some IVAs have a clause asking the IP to retain monies for possible bankruptcy proceedings,but I believe that it's not many.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp