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Hello, me and my partner have been in a IVA for a year now but have missed 4 payments because my partner was out of work for 6 months & we have just moved house & rent is more expensive than before we entered into the IVA. We dont think we can afford to pay our IVA now, can anyone tell us what will happen next. Thankyou

You need to speak to your IP and explain the situation to them, they may be able to get a reduction on your payments for you. Otherwise, if you continue to miss payments, your IVA will fail and you will be back to square one with our creditors.

Hi there and welcome to the forum

You should have a chat with your Supervisor to see if they would be prepared to put forward a variation to the IVA to accomodate reduced, affordable payments. How much were you originally paying, and how much do you feel that you could afford to pay now. Also, what were the reasons for moving to a more expensive property?

MelanieGiles wrote:

Hi there and welcome to the forum

You should have a chat with your Supervisor to see if they would be prepared to put forward a variation to the IVA to accomodate reduced, affordable payments. How much were you originally paying, and how much do you feel that you could afford to pay now. Also, what were the reasons for moving to a more expensive property?

Hi Melanie
Thankyou for the quick reply, the property we are renting at the moment isnt much more than the previous property, but since we entered into the IVA our payments was lower but just enough money to live on, we were not hugely in debt to start with & the IVA didn't lower our payments a great deal, the properties in the city we live where our jobs are, where we have to work for a living, are very expensive! after rising costs of everything we aren't left with money to pay our debt off, is it too late to declare bankrupcy ? if not how do we go about it from here ?

If all else fails there is always bankruptcy, but you are certainly not at the stage, especially as you say you do not have a huge amount of debt.

I can only echo what has already been said and speak with your supervisor as soon as you can.

Melanie is right - speak to your IP and update all of your Income & Expenditure and if necessary request a variation to your creditors - much more preferable than bankruptcy.

Whether the continuation of an IVA which is unaffordable is preferable to bankruptcy is a personal opinion only you can exercise. If you now feel trapped into a repayment programme that you cannot really afford, or you simply do not wish to continue with the repayments, there is no harm in considering bankruptcy proceedings but do keep your IP in the loop.