www.iva.co.uk

My IVA has failed after a couple of years due to job loss. I'm thinking of either going bankrupt as no assets or approaching creditors myself to offer full and finals as some funds could be lent to me by a family member. ( I don't want to try and salvage IVA with a payment break as really had enough of it). Has anyone else had a failed IVA and if so what did you do? I've heard creditors can add on interest and fees ( some of my debts have been sold on) but do you think I could try and negotiate settlement offers or am I better off just going bankrupt? As I don't want to settle a couple of debts if the creditors accept offers but then be left still having to go bankrupt if others refuse. I had two pay day loans also included in IVA so not sure what they will be now if they back date all that interest. And do I need to wait to get failure letter before I can start approaching creditors direct? Also as IVA failed, will I also be faced with a bill for the IP and IVA fees and fees for the PPI claim firm involved with my IVA?

Hi, sorry to read about your IVA failure. Julie who posts on the forum and Skippy both have experienced the failure of an IVA, I'm sure one if not both will be along at some point to give you their story. However, in the meantime I believe they both have a blog and it may be that you could take a read.

If the IVA has not been terminated you could propose a full and final settlement even if the amount is quite low. This would avoid bankruptcy and also the problems with trying to negotiate settlements with each creditor and hopefully would be acceptable.

I like Michaels Ideas, full and final of lump sum IVA that covers everything in the IVA, alternatively you will be forced to bankruptcy and they get nothing.

one question is this, if you're in an IVA that fails, does it still stay on credit file/insolvency register for 6 years ? or longer if fails ?

I guess with bankruptcy it would reset the 6 year clock, so a clean file in 4 years vs 6 if bankruptcy route ?

Hi I'm not sure if your IVA has actually failed (yet) or not? If not best to offer F&F via the IVA rather than outside of it.

The problem with bankruptcy is that your credit record will be shot for six years, you will be on the Insolvency Register and may still have to make payments for three years through an IPA dependent upon disposable income after your normal bills have been paid. Anything over £20 left over and the whole lot will have to be paid over.

Plus you have to find the fees for bankruptcy.

As Lisa and Michael, it would be better done through an IP rather than trying to do it yourself.