IVA to Bankrupcy

[mattyiva]

Hi

I have been in a IVA for near on 4 years although for the past 6 months I have been out of work so unable to pay.

My payments were £640 a month when the IVA started. In the time that has passed I have married and recently had a child. Obviously my wife is not working at the moment and I have just found another job.

They extended my IVA term by a further 5 months much to my annoyance as they calculated the payments wrongly (in my opinion as I had to sign a contract for £640 over 5 years then it should not change especially when it was there mistake) [:(!].

My problem is now that obviously I have a child and wife to support and therefore need a good majority of the £640 for this purpose.

I am considering going Bankrupt as it seems the best option for my family. We live in rented accomodation so I would not loose my house.

My questions are around the process for bankrupcy, if my IVA fails then does my IP enter me into brankrupcy? I understand that I would probably still have to pay what I can afford for a year? Given that I have already paid around £23,000 toward my debt does this get taken into consideration meaning I would not have to pay back for the year?

Any advise or help would be greatly appreciated. I know ideally completing the remainder of the IVA would be the best option but ultimately I have to think of my family and living!

Thanks
Matt

[clareyfarey]

Hi Matt, welcome to the forum.

I don't have the answers for you, but the experts check the threads reguarly, and I'm sure one of them will be along soon.

Cx

[ivas4us]

I would speak with your IP to see if you can get a variation to suit your current circumstances. I think BR this far into your IVA is not wise as I beleive that the OR may want you to pay for 3 years under BR and also your credit file would be shot for a further 6 years.

[ivas4us]

sorry, welcome to the forum.

[Max]

Paul when David hurt his back the Dr gave him Tramadol - very strong but he had no pain inspite of a slipped disc. J

[ivas4us]

thank you J, I will go back next week if I am no better.

[flumpy dog]

hey matt

hope youre well.

is bankruptcy the only option i wonder considering youre so close to the end.

has your ip company admitted an error in payments-are they not able to put this money towards your shortfall now.


as im no expert my advice is limited but im wondering can considering your new circumstances do a review and make your payments lower ?

i dont know what your original debt was but being as youre so close to the end im wondering whether your ip could put it to your creditors to end the iva on what youve paid so far or whether they can give some leaway and lower your payments-have you asked yet ?


hopefully mel or onr of the other pros will look in soon and give you the advice you need[:)]

[plasticdaft]

After that long in an IVA its in no ones interest for it to fail. Talk to your IP and make sure they are aware that BR is on your mind and a way to end the IVA.

[David Mond]

Hi

I have been in a IVA for near on 4 years although for the past 6 months I have been out of work so unable to pay.

My payments were £640 a month when the IVA started. In the time that has passed I have married and recently had a child. Obviously my wife is not working at the moment and I have just found another job.

They extended my IVA term by a further 5 months much to my annoyance as they calculated the payments wrongly (in my opinion as I had to sign a contract for £640 over 5 years then it should not change especially when it was there mistake) [:(!].

My problem is now that obviously I have a child and wife to support and therefore need a good majority of the £640 for this purpose.

I am considering going Bankrupt as it seems the best option for my family. We live in rented accomodation so I would not loose my house.

My questions are around the process for bankrupcy, if my IVA fails then does my IP enter me into brankrupcy? I understand that I would probably still have to pay what I can afford for a year? Given that I have already paid around £23,000 toward my debt does this get taken into consideration meaning I would not have to pay back for the year?

Any advise or help would be greatly appreciated. I know ideally completing the remainder of the IVA would be the best option but ultimately I have to think of my family and living!

Thanks
Matt

I believe a new variation offering a F&F based on what you have paid and/or a revised monthly contribution for 6 to 12 months based on what your current financial position is might be appropriate.

Have a chat with your Supervisor (IP) regarding your changed position and that you are considering bankruptcy - which would be a shame as you could end up with an IPO for 3 years!

[kallis3]

Plus your credit record would be shot for a further six years.

I'm sure that your IP won't want things to fail now that you are so far in.

Good luck and let us know how you get on.

[Julie]

Hi Matt - like the others have said, its in no-ones interest for the IVA to fail this far in. You've done really well and I'm sure given your circumsatnces your IP could offer what you have paid as a F&F.

Let us know what your IP says......and good luck [;)]

[mattyiva]

Thanks to everyone who has offered there support and advice. I do not want to go down the BR route but I have to consider my opions. Given the fact I wanted to do the right thing and try and pay back some that I could afford to.

Can someone please explain what F&F means?

Many Thanks
Matt

[johnh]

Hi Matt
A F&F is a Full and Final settlement of an IVA. It frequently happens that people in an IVA come into a source of a lump sum of money (e.g. borrowing from family) and put this forward as a Full & Final settlement. Creditors often accept this even if less than the original dividend on the basis that a "bird in the hand is worth 2 in the bush". In your case it may be that, given you are so far into your IV and your circumstances have changed so much, your creditors may accept what you have already paid as a "F&F" as there is little point in trying to get blood from a stone. Not guaranteed, of course, but it is being suggested that nothing is lost by trying.

[MelanieGiles]

How much do you feel you could actually afford to pay on a monthly basis? Does your wife intend to return to work? And if so, will you have to pay for childcare?

[David Mond]

So mattyiva - have a chat with your Supervisor(IP) and see what he suggests after giving him the advice suggested from the posters here.