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We are a year into our IVA and although still making the payments we are struggling with our living expenses. I want to go Bankrupt but my partner still has reservations about it but we don't have the money to go bankrupt. Is it best to stop paying our IVA and wait for them to make us bankrupt? Please advise...

I we are in the same situation as yourselves, we stopped paying our iva and where told if we did not bancrupt ourselves then one of the creditors who we owe money to would proceed with this, eight months down the line I have heard nothing of bancruptcy from anyone.If you do not have any equity in your house then yes, if we would have had no equity in the house then we would have definatly gone through with the bancruptcy already.If you or your partner are out of employment it is a lot chepaer to gain help from the goverment in paying for your bancruptcy, we are in the same situation with the cost of making us both bancrupt

Hi louisa
You need to speak with your IP about your situation,and don,t be afraid to because they are being paid very well by your creditors to administer your IVA.It is in everyones interest that your IVA succeeds.It may be that your IP will table a variation meeting to reduce your payments and this needs to be your first port of call before contemplating bankruptcy.
Regards

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

You will need to establish whether there are any bankruptcy provisions within your IVA agreement for failure. Over the last couple of years, creditors have generally been modifying out the need for the Supervisor to petition, so he may therefore not be able to do this?

As the other posters have said, you need to revisit your income and expenditure to see whether you can offer reduced payments to creditors, as you may also have to make contributions under bankruptcy proceedings for three years.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

When I went BR the court clerk me that my IP would make me BR, but I wanted to get it over and done with as soon as possible. When I re-checked my IVA, there was no mention of petitioning for BR, so it could have gone on indefinitely.

Just out of interest, what happens next? Will I get something from my IP stating that my IVA has failed? I haven't received anything yet, and I am still on the insolvency register as in an IVA (with the wrong company name!) and BR. Last question - am I entitled to have my original paperwork back? I asked for it when I informed them that I had been made BR, but I haven't received anything yet.

Onwards and upwards!!!

View my blog at http://skippy13.blogs.iva.co.uk/

Louisa

As Andy says, before you do anything, you should discuss the situation with your IP. It may well be possible to propose a variation to reduce your payments. If this is not possible, then expecially if you have no property, bankruptcy is a real option.

If you have no property, then as Melanie says you will probably have to make your own petition which will cost £485 per person. However, you stop making your IVA payments thus saving the money to pay these charges which are one off

James Falla

Expert in IVA, Bankruptcy and informal Debt Management solutions for over 10 years.

For more information visit www.jamesfalla.com and visit my blog at: http://jamesfalla.blogs.iva.co.uk