Going bankrupt from an IVA

[icebrick]

I am thinking of going into an IVA and should my efforts fail then declare bankruptcy. How soon can I come out of an IVA should I feel it's unrealistic? And how can I prove that it is?
Cheers.

[kallis3]

Hi Icebrick. Why do you feel that your efforts would fail? If you are not sure that an IVA is for you then perhaps you should go for BR straight off.

It will be a struggle in an IVA, there is no getting away from it, but you should have a positive attitude.

I don't think you can just 'come out' of an IVA. It would have to fail. Normally this is because you can't make the repayments or your circumstances change.

I presume you don't have any assets otherwise in a BR they would have to go.

Why do you think an IVA would be unrealistic?

[icebrick]

My expenses are very restricted in my current proposal. I don't have any money to spare to go out or even to dine out for the rarest of occasions. And besides I can only manage this provided I stay single for the next five years which is highly unlikely. My current budget doesn't allow any kind of entertainment. Hence I see the IVA as somewhat unrealistic in the long run.

[kallis3]

Everyones expenses are restricted in an IVA. If you can manage to save some money by economising on things then that will allow you to go out.

If you read other posts on here, you will see that people manage to socialise and even go on cheap holidays whilst doing their IVA.

Unfortunately, because of the amount of debt we have all got ourselves into, your normal way of life has to change - no bad thing in my book!

[Soulgrowth]

An IVA does tie you in icebrick, there is no doubt about that. And it shouldn't be entered into lightly. And I'm not sure that you should be entering into an IVA with a view to it being unseccesful ... this just prolongs the agony really and prevents you from really being able to make a fresh start for once and for all.

BUT it can give you a bit of breathing space ... perhaps to decide more fully what to do about the future, especially should your circumstances change. From my own experiences, I would think that you would have to wait until the IVA had falied (i.e you had missed payments and your IP informs you of this) before you could declare bankruptcy ... but I'm not an expert.

Debbie

[MelanieGiles]

You must not enter into an IVA on a trial basis - and most good IPs would not support such an application anyway. An IVA is only a solution if you firmly believe that you can make regular repayments over a sustained timeperiod, and maintain a comfortable standard of living. Your IP will have to sign a report to confirm to creditors that they believe the IVA has a very good chance of running its course, which they are unlikely to be able to do if you yourself have uncertainties.