Iva change of circumstances

[jamster247]

Hi there I have had to make my iva company aware of change of circumstances they said they will phone me tomorrow with a new income and expenditure my question is what will happen.?i have just moved into a new rented property have no assets and that but I am paying a lot more

What will happen dunno what will happen if bankrupt? Will I have to pay unsure?

[Tina Shortland]

Hi Jamster - your company will go over your new circumstances to see if they are costing you any more or less to see whether your IVa payment will need to be adjusted. If it is within 15% of the current IVA payment then it can usually be adjusted by your Supervisor with no need for formal agreement from the creditors. If your change has affected your ability to pay so much that an IVA is no longer viable by either amending term or with a lump sum instead, then other options will be discussed with you.

If bankruptcy turns out to be your best option moving forward you would have to pay the court fee and then on-going payments for 3 years if you have disposable income greater than £20. It would be on your credit record for 6 years from the start of bankruptcy.

Let us know how you get on, hopefully your IVA can remain in place and continue you on the same path.

[jamster247]

What's the ongoing payments ? How much is court fee? Thanks

[Tina Shortland]

The ongoing payments are for 3 years via the court to your bankruptcy. They are paid through an Income Payment Order and only necessary if your DI is greater than £20. If it is you pay whatever your disposable income would be as you would in an IVA. The current cost to go bankrupt is £700 made up of The Court fee £175 which can be waived in some circumstances (income support etc) and Administration Deposit £525 payable to the Official Receiver.