www.iva.co.uk

I am just over a year into my IVA and was recently given 3 weeks notice of impending redundency. I managed to find another job before I was made redundent but have taken a big hit on my monthly income.

I havn't spoken to my IVA company yet but will do very soon. I'm really concerned, I loved the job I was in before and I really hate this new job, my health is really starting to suffer. At the moment I can't see how I will make ends meet and pay the bills let alone find the IVA money.

The only way forward I can see is that I may have to be made bankrupt but even then I can't pay my bills, I'm looking hard for a better paid job.

I would appreciate any advice anyone can give me.

Thank you,
J

Hi and welcome,

So sorry that you lost a job where you were happy. It's not good going into work if yoy hate it.

You need to speak to your IP asap and at least ask for a reduction in your payments. You will probably have to submit a new I&E, but at least you will one less thing to worry about if it is agreed.

Good luck with finding a new job.

It is horrible being in an job you cannot stand - but do stick with it until something better comes along.

With regard to your IVA you will need to let your IP know, and also provide them with a new income and expenditure account to show that you cannot afford the current payments.

It may be possible for you to have your payments varied to suit your circumstances, or perhaps bankruptcy is now a better option for you. Either way your IP should be helpful.

Thak you for the replies. A couple of people (including my former accountant) seem to think I would have been better going down the bancrupcy route and that maybe I wasn't given the best advice in setting up an IVA.
My understanding is that bankrupcy follows you around pretty much forever despite being finished after 12 months, I wanted to avoid this because I'm keen to get my own house again in a few years, at least with the IVA I knew in 5/6 years this would be possible.

Perhaps I should look more at bankrupcy again, where can I go for some basic info. on this please?

Thanks again,
J

Not really these days - it might affect your credit rating for a bit, but so long as you do not have any assets which would be affected by bankruptcy, it is likely that it would be completed within 12 months, with payments only over a three year period if you currently have disposable income of more than £100 per month.

It will definately not stop you owning a house in the future, although you could be penalised on interest rates for a bit.

I think you should not do anything too quickly other than speak to your IP and see if he can agree to a variation to suspend your contributions for initially 3 or 6 months in order for you to find (a) a better paid job and (b) one that you like.

If successful with this then Bankruptcy can be avoided - see what happens.

Why do you believe that after a year into your IVA you don't think alternative solutions wer discussed with you at the time? Who are you doing your IVA with?

Bankruptcy would drop off your record in 6 years, the same as an IVA will.