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Amanda.14
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by Amanda.14 » Sat Jul 28, 2018 5:10 am
I’ve beem in an IVA since October 2017. I only pay £60 a month (IVA is for 6 yrs). I’m constantly struggling financially, I’m behind with my rent and simply don’t have enough money coming in to survive to pay my bills. I don’t go out socially anymore and live on basic food as can’t afford to eat properly. My question revolves around my overdraft - I have a £400 overdraft which I know isn’t allowed under the terms of my IVA but I can’t survive without it. When my annual review comes round will my IVA fail because I have this overdraft as it will show on my bank statements? Or is it possible to include my overdraft into my IVA at this late stage?
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kallis3
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by kallis3 » Sat Jul 28, 2018 7:44 am
You ,may well have problems - have you thought about bankruptcy or a DRO (depending on your debts) as you have no assets to protect? Your payments are very low for an IVA.
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Foggy
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by Foggy » Sat Jul 28, 2018 8:36 am
If you are constantly struggling there is either something wrong with your allowed expenses or with your spending and this needs to be looked at. The overdraft would not be looked at kindly, but may not yet be reason to fail the IVA (if it is, indeed, sustainable). I am surprised your bank have allowed the o/d facility to continue.

As Kallis suggests, maybe a DRO or even BR could be more suitable and would be worth a look.
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Amanda.14
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by Amanda.14 » Sat Jul 28, 2018 9:18 am
Thank you for your replies.
I work full time so wouldn’t be able to get a DRO and I have thought about bankruptcy but could never get the £680 to pay for it. I just seem to have no options left and feel I just can’t go on with this constant struggle.
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Foggy
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by Foggy » Sat Jul 28, 2018 9:26 am
Amanda.14 wrote:
Thank you for your replies.
I work full time so wouldn’t be able to get a DRO and I have thought about bankruptcy but could never get the £680 to pay for it. I just seem to have no options left and feel I just can’t go on with this constant struggle.


Working full time should not bar you from a DRO, as long as you have no assets, debts below £20k and disposable income less than £50 a month.
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Amanda.14
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by Amanda.14 » Sat Jul 28, 2018 9:40 am
I do qualify as I have all of the above. When I’ve read up about a DRO it says you can’t be in an IVA. Would the best way be to fail the IVA then apply for a DRO? Do you know how long this would take? Thanks
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Foggy
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by Foggy » Sat Jul 28, 2018 9:47 am
Amanda.14 wrote:
I do qualify as I have all of the above. When I’ve read up about a DRO it says you can’t be in an IVA. Would the best way be to fail the IVA then apply for a DRO? Do you know how long this would take? Thanks


This is correct, you cannot go into a DRO whilst in an IVA. You can either ask your IP to terminate the arrangement as you cannot keep making the payments, or allow it to fail by missing three payments, so, by the time the IP caught up with things, it could be a few months more! You do need to get specific advice before doing anything and I would suggest a chat with your local CAB.
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kallis3
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by kallis3 » Sat Jul 28, 2018 9:58 am
You can pay BR fees by instalments now and you should look at getting your IVA failed. I agree you should seek further advice.
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Amanda.14
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by Amanda.14 » Sat Jul 28, 2018 10:22 am
Thank you all very much for your advice, it’s greatly appreciated.
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