I have recently started an IVA with Kinsgate and there has been an unexpected change in my income leaving me with no surplus cash and I am looking at going bankrupt how do I best go about it.
Sorry to hear of your changed circumstances. Is there any way that they will alter for the better in the future? You should have a chat with Kingsgate to see if something like a payment break might be ok for the immediate future.
If not then you need to let your IVA fail by missing three payments. You can then declare bankruptcy but that is going to cost you £700 unless you are on certain benefits when you can get a reduction in that fee.
Do you have any assets that might be at risk in BR, such as a house?
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I too am sorry to read about the drop in your income and the extra pressure this will have put on you. As Jan says if this is temporary Kingsgate may be able to help you out with a payment break as it would be a waste to let it fail unecessarily. If the change is permanent or at least for the forseaable future and you feel BR is the more viable option then holpefully Kingsgate will help you with getting that in place. If you had someone who has a lump sum to offer you could offer a full final settlement instead of going bankrupt - not sure if that is an option for you?
Either way hope you get things sorted soon and things get better for you.
Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.
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I agree with Tina that a payment break would be a good idea. It would keep you under protection of the IVA and perhaps even give you time to gather the bankruptcy fees. If your situation improves you could continue the IVA but if not your IP fails it and you immediately petition.
12 months into my IVA, my take home pay dropped by £1000 per month; my IVA co arranged a variation meeting & my payments were dropped dramatically and I had been panicking thinking I had no other choice but Bankruptcy. Yes my IVA was extended by 12 months but I made my last payment 10 days ago
Dont worry yourself too much ( easy for me to say I know ) ring your IVA co tomorrow and im sure they will be able to sort something for you.
Good Luck
Last payment made April 2012
Certificate received 1st Nov 2012
Just read your post here to Christine.dl about your take home pay being reduced. I'm about 12 months in and my wage is soon to reduce by 20% and I'm sh**ing myself. Certainly don't want BR but would be more than willing to extend just to complete.
Written to my IP along with my last 3 wage slips, and fingers crossed she can sort something out.