I've been doing an IVA for 2 years and I've stopped paying it as I struggle every month and I want to declare myself bankrupt, do I still follow the same process as normal bankruptcy
The process of making yourself bankrupt is the same as if you were not in an IVA. However you can not be bankrupt whilst still in an IVA. You would have to discuss the matter with the Supervisor of the IVA as he would have to report back to the courts that your Voluntary Arrangement had failed before you could make yourself bankrupt.
Hi and welcome to the forum to petition for BR having ben in an IVA you will need a failure certificate from your IP this is normally available after 3 months of failure you do need to speak to the IP who is controlling your IVA whilst waiting for the failure certificate try and save money towards your court fees £510 and if you need anything like a new washing machine etc. buy it with any disposable income you have now from not paying the IVA The disposable income allowances are generaly a little better in BR than IVA and the first £99 of your DI is yours to keep you amy want to consider talking to one of the forum Professional experts like Paul Johns at RevivaUK www.revivauk.com he will be able to assist you in the transition from IVA to BR
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurman) RevivaUK helped me through it all i can't recommend them enough!!
Have you spoken to your IP about having your IVA payments reduced? It seems a shame for it to fail if it doesn't have to.
Also, you need to bear in mind that even if you go bankrupt and you have disposable income over £99 you will be expected to pay into an Income Payment Agreement for 3 years, which could mean you still paying back after your IVA would have finished.
Tomorrow is a mystery, yesterday is history, today is the present, a gift to make the most of.
Your credit record will also be shot for a further six years from the date of BR.
Do you have any assets which you might lose if you go BR?
I do agree that you need to speak to your IP in the first instance to see if they can help you.
I believe also that in the New Year there is going to be a tightening up with the allowances and disposable income in the New Year to bring them more in line with an IVA.
I've been doing an IVA for 2 years
Posted - 07 December 2009 : 14:10:24
