www.iva.co.uk

Afternoon All,

Ive been in an IVA for 1 year & 8 months and i now feel bankruptcy would have been a better option. I have no assests not even a car no mortgage or anything.

Would all the money i have paid so far be paid towards to the bankruptcy?

Thanks

Hi, and welcome to the forum.

Your payments so far would just go towards your IP fees.

Why do you feel that BR would be better for you?

Bear in mind that if you went bankrupt you could be subject to an income payments order for the next three years which is not much less than the remainder of your IVA. The IPO payments could be the same or even greater than the IVA payments so be careful before you opt for that route. If you have received correspondence from a 'bankruptcy advisory service' be very careful and speak to your IP.

Thank you for the feedback. Im can't actually afford to live at the moment i fell into arrears with the council tax because my IVA didn't make adjustemnts for it so i had to take a pay day loan to cover it which got me into a mess. Luckily i was bailed out by family but my rent went up and they ignored this too so im constantly over drawn every month. Im supposed to be recieving a call from Grant Thorton to talk about a review to ammend my current payments, If this happens then i will be happy if they are reduced if not then i simply can't afford to carry on.

If you cannot get Grant Thornton to agree to an amount that you can afford then discuss the option of going bankrupt with them. Why didnt you go BR in the 1st place??

Paul

Hi - discuss everything with your IP and hopefully your payments can be adjusted to allow the iVA to continue. This should have been done at your annual review - but give GT a chance to help you before rushing into BR.

You will have to pay fees to go BR and as Michael says, you could have to make payments for 3 yrs under BR.

Re-do your income & expenditure and have all the facts ready for your discussion with your IP.

Good luck and keep us updated.

I don't think it is fair to say that payments made over a period of 1 year and eight months would all go in fees. In fact these days this is highly unlikely - however the money will need to be distributed to your creditors, and some distributions will probably already have been made.

I would firstly see if you can get the payments reduced by Grant Thornton, and if not or if creditors reject your eventual offer, then perhaps bankruptcy would be the best thing - but you will need to face paying for it yourself and this will cost in the region of £600.

Have a chat with GT and hope it goes positively for you x

Hi
I would just like to say that bankrupcy for me would have been a much better option too but this option was given to me at the outset from my IP. I have no mortgage or assets but I just preffered an IVA, it seemed a much fairer approach even though I am probably worse off in the long run.
Thankyou.

Have to say that the majority of mine went in fees for the first year and a half. There's not an awful lot gone back to the creditors yet.

That is a lot of money Jan - what was the basis for nominee and supervisory fees in your particular case? And have quarterly distributions been made from the funds paid in?

I'll have to dig the paperwork out Mel, and I have no idea if payments are made quarterly.