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