IVA in dire trouble..

Get expert opinion. This is the place for new questions to be posted.
9 posts Page 1 of 1
 
 

Angel220

User avatar
Posts: 7
Joined: Wed Jun 10, 2009 1:10 pm
Location:

Post by Angel220 » Tue Aug 03, 2010 2:07 pm
Hi

I entered an IVA about 2 years ago with much thanks to this forum. At the time it seemed like a good idea because although I didn't have any assets to my name, it ensured that I could continue my employment with the company. But as of about 12 months ago I have been out of work and hence haven't been making any payments towards my IVA. Since then I have also been living on Income Support for the most part.

My IP has been very considerate through it all as I was confident that employment was just around the corner. However things didn't go quite according to plan. My IP has now given me 1 month to come up with the repayments or chip in with a monthly token payment to keep the IVA afloat. I think the most sensible thing for me to do would be to declare myself bankrupt but I just don't have the money for it.

Even if I were to make token payments I really can't afford more than 30 or 40 quid at most. I owe about 35k to 5-6 lenders in all. What would you say are my best options? And what would you personally do in my situation?

Cheers.[:)]
 
 

Michael Peoples

User avatar
Industry Expert
Posts: 15189
Joined: Mon Nov 03, 2008 12:36 pm
Location:

Post by Michael Peoples » Tue Aug 03, 2010 2:25 pm
Hi Angel and welcome to the Forum.
From the sound of things it would be pointless to make token payments as you could save this money towards the costs of bankruptcy. You have tried your best but unless you are confident of finding new employment soon bankruptcy may be the only real option left.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

Angel220

User avatar
Posts: 7
Joined: Wed Jun 10, 2009 1:10 pm
Location:

Post by Angel220 » Tue Aug 03, 2010 3:36 pm
Thanks Michael. But what will happen if I don't have the money to fund my bankruptcy? What if it takes me..say 3 months to find the money for it?

What are my creditors likely to do in the meantime? As long as they don't come knocking on my front door I suppose I can cope. How much does a bankruptcy cost anyway?

What if I opt to go for a token payment for a couple of months to see if my situation will change? How much do you think I can propose as a token payment to my IP?
Last edited by Angel220 on Tue Aug 03, 2010 3:42 pm, edited 1 time in total.
 
 

Michael Peoples

User avatar
Industry Expert
Posts: 15189
Joined: Mon Nov 03, 2008 12:36 pm
Location:

Post by Michael Peoples » Tue Aug 03, 2010 4:09 pm
Your bankruptcy will cost £450 as you should be exempt from part of the fee. Token payments really would not be much help but if you feel you could find a job you could ask your IP to get an extension to your current payment break. During this time save what you can to pay for the bankruptcy if you cannot find a job and if you do find work so well and so good.

If your IVA is failed there is little creditors could do in the three months it would take to save the fee but any delay would clearly help.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

Angel220

User avatar
Posts: 7
Joined: Wed Jun 10, 2009 1:10 pm
Location:

Post by Angel220 » Tue Aug 03, 2010 4:55 pm
When I spoke with my IP the last time I was told that since I had missed out on payments for a whole year, they really can't keep me in the IVA unless I commit to making tokens payments at the very least. Do you think it's still possible for me to still ask for an extension under these circumstances?

I just want to see if a further 3 months will change my situation.

Cheers.
Last edited by Angel220 on Tue Aug 03, 2010 4:57 pm, edited 1 time in total.
 
 

Michael Peoples

User avatar
Industry Expert
Posts: 15189
Joined: Mon Nov 03, 2008 12:36 pm
Location:

Post by Michael Peoples » Tue Aug 03, 2010 5:03 pm
You must have already been granted a payment holiday so ask for an extension. Token payments while unemployed are of no benefit to anyone.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

Angel220

User avatar
Posts: 7
Joined: Wed Jun 10, 2009 1:10 pm
Location:

Post by Angel220 » Tue Aug 03, 2010 5:27 pm
Really appreciate all the advise here.
I'll ask for an extension and see what they say.
 
 

Angel220

User avatar
Posts: 7
Joined: Wed Jun 10, 2009 1:10 pm
Location:

Post by Angel220 » Wed Aug 04, 2010 10:04 am
Thanks for the hug Helen.

Does anyone know how things unfold after an IVA fails? Do the creditors start phoning? Are there possibilities of a CCJ? And what are the chances of anyone knocking on the door etc?

Cheers.
 
 

Michael Peoples

User avatar
Industry Expert
Posts: 15189
Joined: Mon Nov 03, 2008 12:36 pm
Location:

Post by Michael Peoples » Wed Aug 04, 2010 10:10 am
Most debts in IVAs are sold on and once the debt purchaser is aware that the IVA has failed they will make contact to see about a repayment plan. They will not rush to court and would likely accept token payments until you return to work.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
9 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”