Hi Tracy and welcome to the Forum.
If your IVA fails there is nothing to stop you going bankrupt. You will need to save the fee which is £600 each and this would be done from ceasing the IVA payments. By the time your IVA has been failed you would have saved enough up to pay the bankruptcy costs and there would be no reason for a judge to refuse to grant the bankruptcy orders.
I would suggest you speak to your IP before taking such a step as there may be a way forward. Your IP may be able to suspend or reduce payments and possibly get your IVA back on track at a level you can maintain.
As above from Michael and Mel I would definitely speak to your IP and see if they can adjust the payments or put forward a variation to the creditors if the expenditure allowance currently is unrealistic. You may still be able to salvage the IVA if you communicate with the IP about this.
What makes you think you are not eligible for bankruptcy?
Hi Tracy and welcome to the forum. I'm sorry to hear you're struggling with your IVA payments. I would definitely talk directly with your IP and hopefully a way forward can be found. Bankruptcy could also be discussed as an option with them. Let us know how it goes won't you? x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.