Payday loans while in an IVA

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garfield021
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by garfield021 » Thu Jul 19, 2018 7:30 am
Hi. I was took some payday loans and I had slight different income(higher). Now I have annual review and my question is .... they will give breach of contract but thats mean the creditors will straight away apply for bankruptcy?.
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Foggy
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by Foggy » Thu Jul 19, 2018 8:14 am
If they terminate the IVA due to breaches the creditors can apply for bankruptcy, if they think it is worthwhile. They might do it right away (some IVAs have a clause that, in the event of a breach, the IP will petition for bankruptcy behalf of the creditors). or they might take several years.

If the rise in income was a permanent payrise they only, usually, increase the IVA payment after the review. So you might be OK with this. Also, if the payday loans were small, they might be allowed (although definitely not encouraged).
garfield021
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by garfield021 » Thu Jul 19, 2018 8:21 am
So is depend of creditors? How they will sort this out?
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Foggy
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by Foggy » Thu Jul 19, 2018 8:26 am
garfield021 wrote:
So is depend of creditors? How they will sort this out?


First it will depend on how your IP decides to handle it. He might give you a chance to put things right. If the IVA is terminated your creditors are then free to try to collect the debt any way they think fit. They will add back lost interest and possible charges so the debts will increase.
garfield021
Posts: 29
by garfield021 » Thu Jul 19, 2018 8:44 am
So It could Ip decide to go for bankcrupcy straight away?
garfield021
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by garfield021 » Thu Jul 19, 2018 8:58 am
Also I have problem with the job which they are aware of
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Foggy
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by Foggy » Thu Jul 19, 2018 9:30 am
garfield021 wrote:
So It could Ip decide to go for bankcrupcy straight away?


He could -- but it depends on the actual terms of your IVA and the creditors instructions.
garfield021
Posts: 29
by garfield021 » Fri Jul 20, 2018 9:19 pm
Hi.

Can I reapply for IVA after my first was failed? If yes its most likely to be rejected or is any chance to be approved?
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kallis3
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by kallis3 » Sat Jul 21, 2018 7:24 am
Has your IVA actually failed yet?
garfield021
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by garfield021 » Sat Jul 21, 2018 8:22 am
No, It didnt yet ... I just sent annual review and I waiting for feedback but it will fail for sure ... Can You help reapply after it will officialy fails?
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kallis3
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by kallis3 » Sat Jul 21, 2018 8:28 am
I would hang on until you are officially told - you may be ok. You can apply for another one if you need to but there is no guarantee it will be accepted.
garfield021
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by garfield021 » Sat Jul 21, 2018 8:33 am
I will let You know outcome soon
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Foggy
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by Foggy » Sat Jul 21, 2018 8:36 am
The current IVA might not be failed, so don't panic yet. You can apply for a new one, but you would have to explain why this one failed and convince everyone that it would not happen again ... not an easy thing to do in the circumstances.
garfield021
Posts: 29
by garfield021 » Sat Jul 21, 2018 8:41 am
I believe so ... Ok like I said I will wait for outcome about it ...
garfield021
Posts: 29
by garfield021 » Sat Jul 21, 2018 7:56 pm
Can You please tell what happen normally when I fail my IVA because of taking payday loans and have a bit bigger income? What they can do?

Basically I would like to know what I can expect.
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