Can I stop my IVA and go Bankrupt?

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coni
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by coni » Tue Jan 15, 2019 3:35 pm
I've been in an iva for two years, still got another three years to go.can I come out of it and go bankrupt?
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kallis3
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by kallis3 » Tue Jan 15, 2019 3:59 pm
You can, but why would you want to? Your credit will be shot and you may well have to pay across towards it.
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Foggy
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by Foggy » Tue Jan 15, 2019 5:11 pm
As Kallis asks --- why ??

If you go bankrupt, there is every likelyhood that you will be making payments at a similar level, or higher ( I hear they are not as generous with their allowances) for the next three years, so will have saved nothing. Additionally, you would be resetting the clock on your credit files and the 6 years would stat again -- so you would be the bearer of a trashed credit record for a coupls of years longer to boot. And finally -- it would set you back £750 in court fees for the honour.
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Lisa Thomas
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by Lisa Thomas » Wed Jan 16, 2019 10:18 am
Can you give us more information as to why you want to end it?

Income Payments in Bankruptcy are for 3 years btw...
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Vince_100
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by Vince_100 » Tue Feb 12, 2019 6:47 pm
Going to hijack this thread as i may look into this.

reasons are my circumstances have changed. For those who read my child maintenance thread my expenditure is due to increase an extra 150 a month and my IVA is most likely be exteneded. Reading more into bankruptcy i feel this may have been a better option from the get go. I rent my house and have no assets and bankruptcy usually lasts three years max credit file screwed same amount of time. They described an IVA so perfectly over the phone and slandered bankruptcy!
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kallis3
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by kallis3 » Tue Feb 12, 2019 7:01 pm
Your credit score countdown would restart from the beginning of your bankruptcy and you would probably have to make payments for 3 years and you have to pay the fees up front. I would think long and hard about this.
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Vince_100
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by Vince_100 » Tue Feb 12, 2019 7:08 pm
Yes i'm not going to make any decisions until i talk to few people / charities. Just after actually reading more into IVAs/ bankruptcy i think IVAS are for people with homes to protect etc. Wish I found this forum before i signed anything! :roll:
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Foggy
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by Foggy » Tue Feb 12, 2019 7:19 pm
Vince_100 wrote:
Yes i'm not going to make any decisions until i talk to few people / charities. Just after actually reading more into IVAs/ bankruptcy i think IVAS are for people with homes to protect etc. Wish I found this forum before i signed anything! :roll:


IVAs are built around those with assets to protect --- also good for those that have a career that would bar BR or those that feel honour bound to try to pay back more than they would in BR.

I went IVA for the honour reason, though with the attitudes of some creditors and, indeed, some providers. I might not repeat that decision should the need arise and my circumstances had not changed.

If you have no assets, debts below £20k and very little disposable income a Debt Relief Order is worth looking at as well.
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Vince_100
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by Vince_100 » Tue Feb 12, 2019 7:33 pm
Foggy wrote:
Vince_100 wrote:
Yes i'm not going to make any decisions until i talk to few people / charities. Just after actually reading more into IVAs/ bankruptcy i think IVAS are for people with homes to protect etc. Wish I found this forum before i signed anything! :roll:


IVAs are built around those with assets to protect --- also good for those that have a career that would bar BR or those that feel honour bound to try to pay back more than they would in BR.

I went IVA for the honour reason, though with the attitudes of some creditors and, indeed, some providers. I might not repeat that decision should the need arise and my circumstances had not changed.

If you have no assets, debts below £20k and very little disposable income a Debt Relief Order is worth looking at as well.


Debts are a smidge over 20k. I'm due to pay back around £16.5k in my IVA. I will have a good long think about options and depending on what CF come back with following my circumstance change.
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Lisa Thomas
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by Lisa Thomas » Wed Feb 13, 2019 10:15 am
If IVA fails and you can bring debts down to below £20k then a Debt Relief Order might be a possibility but not sure if your circumstances will fit the criteria.
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Vince_100
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by Vince_100 » Wed Feb 13, 2019 4:03 pm
Lisa Thomas wrote:
If IVA fails and you can bring debts down to below £20k then a Debt Relief Order might be a possibility but not sure if your circumstances will fit the criteria.


Debt in IVA is 20900 but with fees its 25930. I'm paying back 44.52 p/£
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kallis3
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by kallis3 » Wed Feb 13, 2019 4:57 pm
Is that your total debt or just what you would pay under your IVA?
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Vince_100
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by Vince_100 » Wed Feb 13, 2019 5:42 pm
kallis3 wrote:
Is that your total debt or just what you would pay under your IVA?


That's the total debt on my chairman's report. I'm due to pay back 16,333.
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kallis3
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by kallis3 » Wed Feb 13, 2019 5:53 pm
I meant your total debt before your iva started
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Vince_100
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by Vince_100 » Wed Feb 13, 2019 5:57 pm
I thought that was my total debt?
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