I posted on here a couple of weeks ago with regards to leaving my IVA due to it not being suitable for me and my circumstances..
Was given some great advice and told to contact Stepchange, whom have told me they can help however they would need proof of my IVA termination before doing so. As it is a legally binding contract etc.
So the plan is to let it fail, then go straight to them.
My apprehensions still remain however and are ultimately regarding bankruptcy, as my prospective career (At University now) does not allow me to have been BR.
I have a car also which was initially valued at £5000 by IP that I would prefer not to lose, but it is now probably worth less than £2000 due to mileage built up and general wear and tear.
So that really is not a big issue.
As advised on the last post it seems unlikely they will petition given the small start out debt (£7000), which after a year of payments being made is more likely to be around £6-6500.
I am slightly worried though as one of my creditors is DWP, with a debt of around £800. I know that with HMRC you have to tread very carefully so I am unsure if the same principle applies with them?
I can pay a lump sum in September out of my student loan anyway for any of my debts to avoid any worst case scenario's, I would prefer to struggle for a while and have all this mess cleared than continue being bound by this IVA and clearing almost nothing off per month.
Can someone advise me what the best route is?
Right now I just want to get out of it and be given the chance to offer my creditors a better solution.
I would be inclined to ask my IP to terminate the IVA, if this is the route you are set on, rather than allow it to simply lapse, which could take some time (three months missed payments, then reminders and correspondence before the IP even starts). Also check paperwork for any bankruptcy clauses or the like in the event of the IVA failing and / or anything of the like regarding fees. Just to be sure that you are not jumping out of the frying pan into the fire.
I take it you are looking at a DMP with StepChange --- the good thing about these is that you can more easily accommodate creditors like HMRC or DWP, who might want a bigger slice of the cake (or the same slice but faster) as all debts will be settled over time. I am sure StepChange will have dealt with DWP before and are better placed to advise you on their attitude to collection / repayment.
Best of luck.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I have checked my contract with them, it simply states that they may petition for bankruptcy in cases where it is appropriate, should an IVA fail. However I feel that is pretty generic and it doesn't state from what I can see that they are required to or definitely will.
It certainly isn't in anybody's interest to make me BR given how much it costs them and the little they'd get in return from my lack of assets, but since the consequences for me would be career ending at this stage in my studies I am justifiably anxious about it.
Also the timescale being longer if I allow the IVA to fail isn't exactly a bad thing.
