www.iva.co.uk

I am currently in the last year of a 5 year IVA. I have had to pay a reduced amount over the last 10 months due to a long term illness and i cannot see me being able to get back to work in the near future. I have asked my IVA company if i can extend the length of my IVA to enable me to pay it off, but my advisor is saying there is a good chance i will have to go bankrupt. They have also said i can offer to pay a full and final payment to stop the bankrupcy but i just don't have that kind of money to offer. Should they offer to extend the terms or are they right about having to go bankrupt. Seems a bit of a rip off to pay for 4 years just to lose it all in the final year because i have a long term illness.

I would ask your IP to ask creditors to accept what has been paid to date in full and final settlement of your debt as you state you have paid 4 years and the problem seems to be illness.
I have had quite a few offers such as this accepted in the past, but there is no guarantee.

Hi and welcome to the forum.

I can't see why your company would say that you would have to go bankrupt as you are so near the time. You might have to extend for a few months but it is in nobodys interests for it to fail at this time.

Which company are you using?

Hi there Steven, It seems strange that your IP is not being more helpful. Are you a homeowner? If so and there is equity in your property, this could complicate your situation as this would be released for the benefit of your creditors if you are declared bankrupt.

A full and final based on payments to date would seem sensible. But as James says, equity would complicate matters.

Hope you can get it sorted - let us know how you get on.

It would be a shame to have it fail now, hope you IP can sort it out foryou and possibly put forward a F&F for you

Hi Steven - try to get your IP to fight for you - any good IP would see that you are so near to the end and your reasons for reduced payments were unavoidable - I am sure with a good effort the creditors could be persuaded to accept what you have offered already. to go bankrupt now would be such a waste and as has been mentioned before your home could be at risk if you have equity in it also if you are required to make monthly payments you could make these for a further 3 years.

I really hope your IP stands up for you - let us know the outcome, fingers crossed.

Regards,

Update, I got a return phone call later in the day from a girl who works for my IVA company, and she has also suggested they might be able to take my 4 years payment and take that as a final settlement to my creditors. I don't have my own home so i don't have any assests. They are going to get back to me tomorrow to let me know if that is what they are going to do. I hope so, it seems a shame to get so close to paying off only for 4 years of sacrifice to be wasted.

Thank you for all your replied. It is much appreciated

Well done- fingers crossed Steven.

Fingers crossed Steven, sounds positive to me.

Let us know what they say.

If that is not accepted by creditors I will eat my insolvency licence - and this is the advice you should have received in the first place rather than being worried. Glad to see that common sense has prevailed.

Just had the call back from my IVA company and was told that they have spoken to one of my major creditors and they said they will not except my contributions as the return they get will be too low. So they are going to apply to extend the length of my IVA for an extra year instead. I thought it was too good to be true:(

The return was 18% and i think my major creditor is Max recovery.

Not the best response but at least you won't have to go bankrupt which would be the biggest disappointment. I hope your IP has fought with everything they have got to push for settling now 18% is higher than some IVAs have settled for. See what the others say and whether your major creditor can be overturned.

Mel doesn't threaten to eat her licence lightly so she obviously feels this would have been an easy resolution to push through.

Best wishes,