www.iva.co.uk

I am currently into my 4th year of my IVA, but am struggling with an increase in rent and already had a reduction in payments due to returning back to studying to get a better job. In May my payments are due to go up & I'm already panicing trying to work all hours to make ends meet & never getting there. I'm seriously now considering bankruptcy but am worried of the effect this will have, I've already told my landlord about my IVA so I have a guarantor, my bank account is a bacis account with no credit, my car isn't worth much due to high mileage & I need this to get to & from uni and work, my laptop I need for uni work and I don't own anything else of value. I'm starting to find that the light at the end of my tunnel is shrinking rapidly. Please could you advise accordingly.

Hi Claire4, I would suggest speaking to your IP as a matter of urgency to see what can be done for the final year of your IVA. You are so close now it would seem a shame to have to go BR now if there is no need. Your IP should re-evaluate your income and expenditure both now and projected when your payments were due to rise, to see what can now be offered. Your IP may be able to amend your payments without going to the creditors depending on by how much or they may have to put in a variation to them.

Either way, get onto your IP. They are being paid to supervise your IVA which means doing what they can to help you reach a successful conclusion.

Keep us posted as to how you get on.

Regards,

Tina's right - your IP will be there for you and should do everything possible to help you through this difficult time. Having paid for so long and done so well it would be awful to go through bankruptcy now unless that was honestly the right course of action.

It sounds like you've made some arrangements for bankruptcy already, but your IVA company will know more about your personal situation and is likely to give you better advice.

Speak to your IP and ask them what your options are. Best of luck. x

Given that you have paid over three years worth of payments, it is very unlikely that creditors would want to see you declared bankrupt. Try for a further reduction in payments down to an affordable level, and if this does not work it would be worth asking your IP to apply to creditors to see if they would accept the monies they have received to date in full and final settlement.