can any of the experts on here tell me what the likelihood is of creditors making me bankrupt following a breach of iva?
The breach for taking out more credit during an iva
i just want to know the likelihood of this happening or would they consider an esxtension? i havnt spoken to my IP yet i wanted advice on all scenarios first:(
the stress and worry of what i have done is going to send me to an early grave if i dont sort out this mess.
thanks in anticipation
Hi. What action is taken will depend upon the circumstances and the view of your IP along with the amounts involved. It is impossible to second guess. The IP will ( should) attempt to agree a course of action with you to rectify the situation.
If the breach cannot be rectified the IVA will fail. It is unlikely that your creditors will call for BR, unless it is in their interests ( large debt, a lot of equity to be had from the house ).
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 around £30000 equity in a shared ownership property joint owned with housing association. the debt figure in the iva was £28000 and the additional debt is £6000.
my worry is that they will push for it and i will lose my home.
on the plus side i have an extra income in thye form of child maintenance which i now receive so could offer a higher amount ever so slightly.
im not managing to pay them thats the thing im in a right pickle and i have a doorstep loan (provident) that i cant keep up the payments on either.
i am with Bridgestones they have been brilliant so far im just scared and also really cross with my self
As Foggy says, your only real course of action is to come clean with your IP asap and see if you can work a way through it. You can't do anything - aside from fret yourself silly - until you do that. BR is not an automatic result even if the IVA fails, the creditors will lose out that way, so they might look at a DMP - but you have to try to salvage the IVA and the only way you can do that is to contact your IP. No other way around it.
Last monthly payment made 3 June 2013 after 6 long years. CC issued 21 August 2013, but, er, lost in the post. Finally got it 17 September.
It is a breach and it may need another meeting of creditors. However, creditors may not ask for failure of the IVA but the debts are post IVA and will not be bound by the IVA. You may need a break plus extension to clear these new debts.
they are payday loans charging extortionate amounts of interest i would need a long time to pay off whats owed. i doubt the interest would stop either.
You could consider failing this IVA and proposing a new one with the payday loans included. If you have had to borrow during the IVA it is possible that your original payments were too high so this could be an option.
It depends on how long you have been in the current IVA as to whether this would be the right move. Speak to your IP.
If you stop paying the IVA will be failed so you can stop it yourself. However, given that you have made payments for over 2 years it would probably be better to salvage this IVA than start another.
Have had a chat with OP but been very very vague they have said it would be the SUPERVISOR that could push for bankruptcy in the event of a breach. Also supervisor can do this if the iva fails
So now I am more worried! Any thoughts?
If the IVA has been breached then you should be given 30 days in order to rectify the breach or work up proposals to enable you to rectify it. That's what you have to do right now with your IVA company.
Last monthly payment made 3 June 2013 after 6 long years. CC issued 21 August 2013, but, er, lost in the post. Finally got it 17 September.
