I currently have an IVA but cant afford to keep up the payments. Its seeming that Bankruptcy is my only option. What happens when I cant keep up my payments do I make myself Bankrupt or do the IP do that for me? Are the creditors free to chase me then?
It rather depends upon the terms of your IVA and the amount of money you have paid into it. Some proposals direct the IP to apply for bankruptcy if the IVA fails, but I am seeing this less and less these days as creditors would rather be free to pursue you directly in the event of IVA failure.
You can declare yourself bankrupt for a total cost of £495.
when you say that you can't afford to keep up the IVA payments is this because of a material change in circumstance or because the income/expenditure clculations were a little off at he beginning?
It may be possible to renegotiate the IVA payment depending upon the situation so may be worth you discussing this in the first instance with your IP.
Bankruptcy - depending upon how long you have been in the IVA wil depend on whether you have contributed suficient for the IP to make you Br and the instruction of the crediors when you have had the IVA fail.
What type of employment are you in and do you have any assets?
You may want to get some advice about these areas too
Paul Johns Assisted Bankruptcy Specialists Reviva UK www.revivauk.com
What happens when I cant keep up my payments
Posted - 01 April 2008 : 22:42:20
