paid enough,declare me bankrupt, temp suspension?

[paul.sn]

I currently pay £400 p/m into an IVA. Total owing was £65k. I have about 18 months to go and face the possibility of losing half my income. I have no assets. A member of staff at my IP says the creditors MAY decide that I've paid enough already, declare me bankrupt or ask for a temporary suspension. In your experience what is the likely outcome? Thanks

[Adam Davies]

Hi
Well they won't make you bankrupt
When your income reduces speak with your IP and discuss your options.If the reduction in earnings is long term then you may find that your creditors will settle for what's already been paid
Regards

[MelanieGiles]

Andy - they might! Although I agree that this would be unlikely.

If I were your IP I would push creditors towards the acceptance of what you have already paid in full and final settlement, although I have to say that there appears to be a growing trend of creditors advising IPs to distribute the money collected so far, and close the case thus allowing them to continue to pursue their former customers directly.

[paul.sn]

Thanks both. Melanie, does that mean all I've paid in ,with expenses deducted, may count for very little and I could be back where I started nearly 4 years ago.

[MelanieGiles]

No - it would mean that creditors would be repaid to the extent of the monies you have paid over, but you would still be liable for the difference.