Considering bankruptcy in 6th year of iva

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Alandh21
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by Alandh21 » Mon Sep 25, 2017 5:23 am
I've been in a IVA for the past 5 years and just about to enter my 6th year but after my IVA Company decided to but my final payments up to £915 from £407 I'm thinking of bankruptcy, I have no assets would this be a sensible thing to do?
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Foggy
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by Foggy » Mon Sep 25, 2017 6:56 am
Not really ---- under BR you could find yourself with having to make siimilar payments for three years, which would defeat the object of trying to save one year! On top of that, the 6 year clock to credit-worthiness will re-start.

You need to get your provider to explain, in detail, why they are making this increase --- has your income drastically increased? Have your expenses dropped (HP on car finished or something like that) ?
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Michael Peoples
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by Michael Peoples » Mon Sep 25, 2017 9:11 am
I agree. There must be a reason for the increase or you can appeal it if you think it is unfair. Bankruptcy at this stage would cause more problems than it would solve for the very reasons Foggy listed.
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Lisa Thomas
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by Lisa Thomas » Mon Sep 25, 2017 1:47 pm
You may have to pay 3 years of contribution in BKY.... Not a good idea when you are so close to the finishing line.

Best to work out what's wrong with your contributions and why you can't afford them.

Either issue with the calculations, issues with info you have given or omitted to your IP or you are overspending on non essential items.
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