www.iva.co.uk

Hi. I have been in an IVA for around 2 1/2 years. At the time of taking it out I was assured that it was the best option for me. I am now struggling to cover my monthly contributions because of the current financial climate and I have lost overtime. I am now getting close to failing my IVA. I have no assets i.e. no house, no expensive car etc... maybe bankruptcy is an option? what would happen if I was to just let my IVA fail?

If you let it fail, then you would go back to square one with interest and charges being placed back on the accounts and the creditor hassle starting again.

You are halfway through, it would be a shame for it to fail now. Go back to your IP and explain things to them.

Bankruptcy is an option, you need to take advice from your IP.

Hi Shanks.
You have a number of options and you should speak to your IP or caseworker. If you are struggling with payments you could propose a variation to reduce them to a more sustainable level or if you can make no payments at all your IP could request that creditors accept what has been to date as full and final settlement.
If you just fail the IVA and do not speak to the IP then you will either be made bankrupt or even worse the IVA would be terminated and you would be back to square one. All the money paid by you to date would have gone on fees and the residue distributed to creditors who could than start enforcement action against you. This would depend on what modifications were proposed by creditors and whether or not there is sufficient monies held to pay for your bankruptcy.
Bear in mind that if you do have a surplus and are made bankrupt you could be subject to an Income Payments Order for three years which is longer than the time left on your IVA.

Michaels advice is correct - get your IP to review all of your circumstances and review exactly what you can and can't afford. Establish reasons for the present situation and discuss whether a variation to reduce/payment holiday or whatever is appropriate.

Let us know how you get on.

Thanks for all your advice. I have sent an email to my IP and am awaiting his reply. Fingers crossed hey!

I contacted my IP for a variation, the problem is that I cant make the payment this month!

Just explain that to them - which to turn it into a positive shows that you are struggling rather than "trying it on".

I have told them exactly where I stand. Hopefully I will hear back tomorrow

I have had a reply from my IP. They have said that I can basically have a 2 month payment break to cover my immediate issues. They are going to review my I&E and let me know about long term variations

Hi
That sounds promising
Regards

Hi Shanks,
Sounds like a sensible decision by your IP and I hope you can resolve the situation given the effort you have put in to date.
Good luck.

Good news shanks. I hope you manage to get things sorted.

Good news, and good luck!

That's great Shanks, let us know how you get on. X

How long would it normally take my IP to get back to me after I have sent in my revised I&E? I just get a bit nervy when I dont hear anything!