Hi, I have 1 year left in my IVA which the possibility of a 1 year extension if I have equity in my house (which at the moment I do). I am being made redundant but will be able to pay the IVA for at least another 4 months but what will happen if I don't find another job, can they make me go Bankrupt?
Thanks
Jason
Any redundancy money received will need to be declared to your IP. You are normally allowed to retain six months living expenses to allow you time to find new employment.
If during this time you are unable to identify new work you could seek a full and final offer on payments to date.
Ultimately if the iva is not paid for three months you could be deemed to be in 'failure' zone but having paid for 4 years it is unlikely in my opinion to cause bankruptcy.
Keeping your IP involved and updated on your circumstances will help as they can continually reassess your I&E for you and potentially offer a payment break.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
If you don't find work in the few months after redundancy you can ask for a payment break ( which will be added on to the end, so extending the IVA term) for a few more months. After that you could consider raising a full and final offer from friends or family, or asking for the F&F to be based on payments made to date as a last resort before failure.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
We were in our 4th year and were definitely in for the 1 year extension due to equity, and almost a year ago to the day my husband got made redundant, only getting stat redundancy (so not a great deal but a few thousand and we were able to keep the full lot) which our in-laws then topped up and we offered a full & final. Our offer was substantial but well below what the creditors would have got if we'd been able to carry on till the end including the extension, but my husband was jobless (albeit I piled on the pressure and he walked straight into employment - but at a lower rate) and after the long F&F process, (including a 2 month payment break), the creditors decided to take what was on offer! Thank the lord!! we were gutted the day he was made redundant, but every cloud has a silver lining! Good luck.
IVA started Sept 2012, Full & Final accepted Aug 16th 2016 & CC issued 10th Jan 2017
