question category: IVA

can i go bankrupt while in an iva if i am still able to afford it
Submitted on: 29th Oct 2009 by Non-Member | Total Answers: 1

no spare cash for christmas no holidays and at 56 with four years to go on the iva then another year when they make me remortgage i have had enough right now !!!!
i have an interest only mortgage so house will never be mine
can i just go bankrupt and get rid of all my debt considering i can afford the 250 month iva,albeit with nothing left for the pleasures in life

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Re: can i go bankrupt while in an iva if i am still able to ...

If you feel the IVA is no longer the right procedure for you - you can potentially let it fail. Its a contract, you can break it.

When you miss 3 payments - an IVA will usually fail and you will then be able to declare yourself bankrupt.

However if you have equity which you could remortgage for in an IVA it is likely your house will be repossessed and sold in bankruptcy.
But if you are 56 - how is your IVA supervisor considering a remortgage in the current credit climate? Surely the IVA will just run for one extra year? Who is your IVA with?

If you can afford £250 per month in an IVA - it is likely an income payments arrangement will be made in bankruptcy which means you will be making payments for the next 3 years,

You need specialist advice - first of all from your supervisor.

You may be able to "vary" your arrangement and keep it on track with new terms.

If you need advice on bankruptcy or a new IVA or debt management plan, click on my name and contact Debt Advice Foundation.

This question was answered by Debt Advice Foundation, an independent UK debt advice charity. If you're considering entering into an IVA, Debt Advice Foundation provides a free, confidential helpline and can advise you on whether you qualify. Click here to find out more.

Submitted on: 30th Oct 2009 by Darren Member

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