Hello There, Me & my partner are very serious about going bankrupt as we are already in a IVA but struggling to keep up with the payments, we have been reading articles that say we have to pay the court money for 3 years could anyone tell us what is this money for? & would it work out more expensive to go bankrupt?
Hi Maria and Welcome, It is a case of you pay £495 each for the court fees then if you have enough disposable income left per month after paying your essential living costs then the OR can impose an IPA which would mean they take a percentage of your disposable income which is left to pay towards your creditors. This can last for the 3 years but is dependent on your circumstances throughout as you keep them informed and if your income drops so much so that you dont have enough to pay the IPA then you let the OR know and vice versa as the IPA can be adjusted. Yes it will last 3 years if instigated but it usually means your better off, but obviously assets like your home and things can be sold within reason to release monies to pay back. Do you have any assets? What DI do you have left after paying all your essentials? Hope I have helped JO
"There is light at the end of the tunnel, if you cant find it, get a brighter torch!"
Your first port of call should be a discussion with your IP as your monthly payments can be amended to a more affordable level. How long have you been in the IVA? It is worth noting that if the IVA fails, the clock is re-set and any monies paid into the IVA to date won't count against your debt. If you are a fair way into the IVA, it is well worth trying to get your payments down to an affordable level before throwing in the towel!
Julian Donnelly Spokesperson for www.Bankruptcyhelp.org.uk Don't forget the helpline on 0800 078 9367
would it work out more expensive to go bankrupt?
Posted - 26 August 2008 : 18:14:57
