www.iva.co.uk

I am 3.5 years into my IVA and starting to really struggle.
When I started the IVA I had a car on HP. As I wasn't able to refinance the car I managed to buy a car off my parents paying them £200 for 2 years. This was taken into account with my IVA. Anyway now the time has come that my HP car would've been paid off my payments have increased by about £180 as originally agreed. I still have another 3 months to pay my parents for their car and to top that my car is basically on its last legs needing various things doing to it. I'm really worried as I don't feel able to cope with the higher payments to the point where I'm considering letting it fail with the intention to go bankrupt. Is it possible that a reduction in payments be considered if I agree to extend the term of the IVA? If not what are my options with regard to bankruptcy etc

Hi and welcome,

It would be a shame to let your IVA fail now that you have come this far and bankruptcy would affect you for six years and you would probably have to have an Income Payment Agreement for three years which would possibly be as much as you are paying now.

Speak to your IP company and explain the position to see if you can keep your payments the same until you have paid off your parents and/or have a payment break to pay for repairs.

I you might just need a payment break to give you some breathing space - speak to your IP about this and hopefully they can use their discretion to give you a break.