I have been in my IVA Agreement with Spencer Hayes for 2 years now. Within that period I have missed 4 payments due to financial difficulties. I have since received a letter and anniversary annual report confirming that I have breached my agreement and must remedy my arrears of £1,100 within the next month. Due to the fact that I am already in financial hardship and within an IVA agreement I cannot possibly afford to pay the arrears within that time frame. I have since taken on a new job role in which I feel job security is finally at a high after recent redundancy measures and wish to keep my agreement as it is and pay the arrears off hopefully at the end? I am not sure what steps will be taken now and if indeed I will be made bankrupt by my creditors or if I can still proceed with my IVA agreement that is in place? Would it be best perhaps to look into bankruptcy? My total debt is approximately £21,000 less contributions already paid within my IVA.
I would suggest that you need to speak to your IP about paying your arrears off. Could you possibly pay off a little each month?
If your IVA fails it is unlikely that you will be made bankrupt by the creditors, but you will be back to square one.
See if you can sort something out before looking at BR.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Why don't you ask them to go to creditors to ask for the arrears to be either waived or added to the end of the arrangement. Creditors will generally give someone a second chance, but you need to look to the reasons why you got into arrers and be sure that this is not likely to happen again.
