Is it right IVAs can be written off??

[jo_b]

I have got an IVA it started in July 2005 my payment is £220 per month, i was told by someone who is also on an iva that because she cant afford to pay the monthly payment they have written off her debt because she has paid back for 2 years now. I want to go to Uni this Sept so ill be a student for 3 years and very poor, i wont be able to afford to pay my payment every month because ill only be receiving £500 a month to live on. Is it right IVAs can be written off?? and where do i stand if i go to Uni? I dont want to go bankrupt.

[MelanieGiles]

Hi jo

What your friend probably means is that her IVA has been terminated due to non-payment. I would doubt whether her IP has agreed with creditors to accept what they have received after two years in full, but this is of course possible.

If you feel that you will be unable to continue with your IVA payments, then you must discuss this with your IP at the earliest opportunity. Were you aware that you were likely to go to University when you commenced the IVA - and if so was your IP aware of your plans?

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

[jo_b]

No when i started the IVA i had no idea i would go to Uni, I started my new job after the IVA started and I have the opportunity to do my training which will take 3 years. I did call them to ask what would happen and they were not sure, if i get a secondment i will not have any problem paying the payment but ive heard they probably wont be doing that this year, which is a pain!

[MelanieGiles]

Jo

Don't forget that your future career is a far more important priority than repaying a few debts. Maybe bankruptcy would be a better option for you to consider. What profession are you likely to go into when you graduate?



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

[jo_b]

I want to train to be a psychiciatric nurse, i really dont want to go bankrupt my family do not know about my debts and i do not want them to find out. Jo x

[MelanieGiles]

Then a DMP might be a better option for you in the long term if you can continue to make payments of at least £100 per month.

Continue with your IVA payments in the meantime, but have a serious think about the options which I summarise below:-

1 Bankruptcy - will release you from all debts, and unlikely that you will be required to pay any monthly payments - but publicly advertised.

2 Carry on with IVA - perhaps get it varied to accomodate lower payments if possible.

3 Debt Management Plan - where you may owe the same totals in three years time if creditors continue to charge interest on the debts.

How much do you owe as a matter of interest?

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

[jo_b]

It was just over £17000 but the IVA agreement of £220 per month means i will be paying back £13200. If I come out of the IVA agreement and take up a payment plan do think I would be able to get a student loan? Jo x

[MelanieGiles]

Hi Jo

Yes I am sure you would be eligible for a student loan, but make sure that you make them aware that you have debts with other creditors. As the student loan will not need to be repaid until your earnings reach a certain level, then this is unlikely to disturb the operation of a DMP if you feel that the IVA cannot continue.

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

[jo_b]

Thanks for your help ill let you know how it goes. Jo x