What happens if I fail my IVA?

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jean821
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by jean821 » Thu Jan 31, 2019 7:56 am
If I didn't pay for three months in order for the IVA to be failed by the IP, what are the consequences and what would my creditors do? I certainly don't want to be made bankruupt. Would I be able to go back to paying the bills every month. I guess my creditors would charge me extra to do this? My biggest problem is that I need to. pay for certain things in cash. What would happen if, like last week, I had to call out an emergency electrician on a Sunday and I had to give him £150 in cash.
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Foggy
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by Foggy » Thu Jan 31, 2019 8:08 am
If you fail the IVA the creditors will add back any lost interest and will be free to pursue the repayment as they see fit ... bankruptcy, although a possibility, is not a certainty. It will be up to each creditor to decide how they are willing to proceed.

Emergencies happen to all of us in an IVA and, often, cause distress and discomfort, but are the nature of the beast. Sometimes we manage to save a small emergency fund before entering the arrangement, other times we just have to manage until we can get the money together -- maybe by a payment break ageeed with the IP.
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Lisa Thomas
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by Lisa Thomas » Thu Jan 31, 2019 10:47 am
Creditors can take recovery action against you.

This could mean bailiffs are instructed to remove assets of value, a charge is put on your property (if relevant), you could be made Bankrupt with all the ramifications that come with Bankruptcy.

Why are you thinking about failing it?

Can you ask for a payment break to cover the emergency payment you had to make?

You should speak to your IP.
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