www.iva.co.uk

What happens if, halfway through an IVA, I decide to go bankrupt because I am unable to meet the minimum payments of £250 & my IP won't accept any lower payments from me?

Desperate

Then you go bankrupt - and will probably find that the process is fairly simple and a real relief when it is all over.

Make sure that you have spoken directly with your IP(not one of his or her staff)to inform them that you feel you have no option given that they wont entertain a reduction in your payments. Is there a specific reason that you cant meet the agreed payments?

but it will still be on your file for another 6 years from BR started for your credit rating

If you do need to speak to your IP, you can find him via this link:

http://www.insolvency-service.co.uk/newipsearch.htm

Bear171 - what is your current financial position? Are you half way through your IVA? How much have you paid in? Is your current disposable income less now than when you started with your IVA?

She's already in one David:

http://www.iva.co.uk/forum/topic.asp?TOPIC_ID=19693

I'm exactly 2 years into my IVA. From February my hours decreased and, therefore, so did my monthly salary. Now I've been made redundant so can't meet the payments. I've been applying for jobs but haven't had a whiff of an interview or even many replies. Like the rest of the country I'm scared that I might not find a job for a while. I doubt my IP will allow me more than a couple of payment breaks. They have not been very helpful to me at all. Last year they cocked up my payments and, as a result, I am in arrears with them through no fault of my own.
I got a letter from them yesterday telling me that if I couldn't meet a minimum payment of £250 then they would fail me. Or I could finish my IVA & may have to go bankrupt.
I don't know where to go from here.

BTW, i've paid in just under £7,000

What will happen to the money I've paid in already? Will my IP take it all for expenses?

Your creditors should have had some money across to them already as you are two years in.

I would speak to your IP first (not one of his minions) and explain the position to him. You can find him/her here:

http://www.insolvency-service.co.uk/newipsearch.htm

I would ask your IP for a payment break of up to 6 months (my firm have done several already and accepted) to allow you time to get a new job. Half way through is good going and creditors realise what is happening in the workplace today. Speak to your IP direct and let us know how you get on.

Thanks Kallis - yes I knew Bear171 was in an IVA.

Bear171, I feel for you as we had been in our IVA for 18months before it failed - due to a poor representation form an IP and greedy creditors.

We had paid in circ £12K and you do get a report from the IP showing how much has been paid across to creditors. Unfortunatley, the IP does take a fair chunk for fees regardless of their performance.

If your IVA is deemed to fail, would BR be an option for you? It is not an easy solution but at the same time it will provide an end to the debt and the relief is enormous.

Have you provided a revised I&E for a variation meeting?

Hi Swansgirl, thanks for your reply. I think my IVA is doomed & am beginning to think that BR would be better for me. I just wish I had gone BR instead of an IVA 2 years ago but I was not in the right state of mind as my husband had just left me & I was not well.
I have revised my I&E but my IP said that my creditors wouldn't agree to the lower payments. Mind you, it's a moo point now because as of 2nd april I'll have no money coming in so he'll be offered even less from me until I secure myself another job.
I wrote to my IP about a month ago asking what my creditors had received & he told me that they had not been given anything because he has insufficient funds available. He says that he must have 'funds in hand equivalent to no less than 5% of total creditors claims'. My understanding of it is that he takes his payment before giving any of my creditors any money.

Hi there, have you ever had a statement after a review? Your IP may have held funds but there must be a point in time when funds are released to creditors - which company are you with?

Do you have any assets that maybe affected by going BR.. property, car, and have you got the money available to go BR - £495, unless you're on certain benefits. Sometimes your IVA holds funds for going BR, so check your proposal.

Your IP will take their fees before paying creditors but you still should have statment detailing the fees etc.