We are now into our 2nd year of an IVA, It was going very well but after year 2 our IPA want an extra £435 pound a month - Which totals to around £700 per month.
(This is due to my Wife having a pay rise).
My Questions are -
- What happens if i end the IVA, is it literally a matter of the creditors start chasing you for their money again?
- Can i approach, for e.g our biggest creditor and offer them say £150 per month, etc
Basically start a payment plan with my creditors?
- I am seriously thinking of the bankruptcy route, we have 2 young kids and a bit of equity (around 15k),
Is there a free service or someone who i can talk too to discuss the possibility of bankruptcy ?
I have just been told today from the IPA today (in so many words) -
- We are claiming too much for food.
- Why is our petrol costs so high?
And according to the IPA, the answer to all our problems are
a) Payment breaks
b) "Ask a family member to lend us money"
Payment break - if we had to have a payment break every time we need additional cash then the IVA would seriously go on 10 years.!
If you end the IVA then you will be back to square one and the creditors will add on interest and charges again. You would have to let the IVA fail by not paying for three months.
You can try a debt management plan but that is going to take forever to pay off.
If you did decide on bankruptcy then there is the possibility that you may lose your house.
With the amount of DI you have then you will have an Income Payment Agreement for three years which will very likely be as high as your IVA payment. Depending upon how much your car is worth you may well be required to sell it and get a cheaper one and you will also be subject to the same sort of allowances as in your IVA.
If your payments are due to go up by that much, is there a possibility that you will end up paying your creditors back in full?
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
You can discuss the bankruptcy option with your IP too.
Are you speaking to your IP direct about your income and expenditure or a team member. Sometimes it's as well to ask for a telephone appointment with IP (if you're not). x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
To be honest i still don't understand the full functionality of the IPA company (RSM Tenon in my case), They just seem to be a money making organization who want to milk you dry. No disrespect to the people i talk to (genuine nice people) but they seem very young and casual and not fully up on things ("I will have to ask my manager" after every other question).
It's my life in their hands !! That's fairly important to me!
So if they have a person who deals with bankruptcy then i will speak to them however i would rather speak to a 3rd party.
Hi looking at the breif info available I would hazard that you would have no "saving" in entering BR now. You have been in the IVA 2 years plus, and a 3 years payment order in BR would take you up to over 5 years of payments, with the risks of losing house and car.
I am with Tenon and have found them to be very good, so far. We have had our blips, but have talked through them. I did, initially, find it frustrating in the extreme to never have the same person twice dealing with matters, which knocked any continuity on the head. However, after a few conversations with an IP there, things have improved.
I might add that I would prefer that the person I am speaking to did pass anything they are unsure of up to the manager, rather than try to bluster through with incorrect advice.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
