I'm in an IVA, can I switch to bankruptcy?

[sydneyshaw]

Hello, I entered an IVA in August 2021 after COVID forced me to close my used car sales business leaving me with about 30k of unsecured debt. Since starting the IVA I was told it should of been bankruptcy in the first place.

Currently we are struggling with our budget and are using credit every month so I'm considering stopping paying my IVA for 5 months in order to use the IVA payment money (£120) to save for a bankruptcy application. The debt included in the IVA is all personal in my name that I took out during being director of my ltd business, I have no assets or savings, nothing.

Is this something I can do without causing major issues?

[Dottir]

Hi

I am not sure this is the right place to ask such a question. I strongly suggest that you take some independent debt advice- maybe CAB or National Debt Line.

Who suggested an IVA- there might be a complaint for miss selling there. Are all the debts in just your name ( I know you said in your name but are any joint)? It might be that a DRO is more appropriate if you are in England or Wales but I am not qualified to say. Talk to an expert.

£120 a month on 30K seems just wrong to me, especually with no assets.


Ive had a search and this might be useful
https://debtcamel.co.uk/complaint-iv...r%20IVA%20firm.

[sydneyshaw]

Hi

I am not sure this is the right place to ask such a question. I strongly suggest that you take some independent debt advice- maybe CAB or National Debt Line.

Who suggested an IVA- there might be a complaint for miss selling there. Are all the debts in just your name ( I know you said in your name but are any joint)? It might be that a DRO is more appropriate if you are in England or Wales but I am not qualified to say. Talk to an expert.

£120 a month on 30K seems just wrong to me, especually with no assets.


Ive had a search and this might be useful
https://debtcamel.co.uk/complaint-iv...r%20IVA%20firm.

Thanks Dottir , iirc it was stepchange and they put me onto McCambridge Duffy who sorted out the IVA. All debts are in my name, a DRO doesn't seem like the option because we have more than £75 spare per month. Also the total debt was actually 44k
???

[Dottir]

I wonder if you do as you are struggling to pay £120 . Also if you are a couple but the debts are in your name, your partners income shouldn't come into it in my opinion.

Here is another website that might help. www.theivaforum.co.uk


Sorry I can not be of more help

[sydneyshaw]

I wonder if you do as you are struggling to pay £120 . Also if you are a couple but the debts are in your name, your partners income shouldn't come into it in my opinion.

Here is another website that might help. www.theivaforum.co.uk


Sorry I can not be of more help

thank you Dottir you have been most helpful!

[Roger]

First welcome to AAD you have come to the Right place because so many with AAD have been where you are today.
Including myself.

Please be aware that there is a plethary of sites that are DCA's and Banking Sponsored Charities invariable the IVA will come up!
BUT AND IVA WILL NOT PREVENT BEING SUED FOR A DEBT!

IVA Forum: A One-Stop Shop for Individual Voluntary Arrangement (theivaforum.co.uk)
"..
The above is provided as general information only. TheIVAForum.co.uk does not provide debt advice. You should always seek professional advice before taking any action to resolve your debts.
.."
Look just like a DCA's Charity sponsored site! They are even promoting Credit aren't they! Its all on that site!


So sydneyshaw
"..
Hello, I entered an IVA in August 2021 after COVID forced me to close my used car sales business leaving me with about 30k of unsecured debt. Since starting the IVA I was told it should of been bankruptcy in the first place.

Currently we are struggling with our budget and are using credit every month so I'm considering stopping paying my IVA for 5 months in order to use the IVA payment money (£120) to save for a bankruptcy application. The debt included in the IVA is all personal in my name that I took out during being director of my ltd business, I have no assets or savings, nothing.
.."

I note the following which is telling me that Consumer Credit Debt is increasing thats Debt to pay what Corporate Debt?

1/ We are using CREDIT every month ? I presume Consumer Credit Debt?
2/ Ltd Business and £30k of unsecured debt I surmise a Corporate Debt? But the source of the Debt is actually Consumer Credit?

So you have come to the right place

It helps you and AAD if you can set up your Diary and Debts in the AAD format!
This will enable AAD members to advise or otherwise

Type of account -
Date commenced -
Approx balance -
Date last paid -
Are you on arrangement or not paying -
Account owner

[Dottir]

BUT AND IVA WILL NOT PREVENT BEING SUED FOR A DEBT!

utter and dangerous twaddle . Being in an Iva (as long as you keep paying ) stops court action

https://www.gov.uk/options-for-deali...20your%20debts.

[sydneyshaw]

Does anyone know where we stand with this....….My wife has finance on a motorbike which has the logbook in my name, if I were to apply for a DRO would this bike be classed as an asset I own?

[Dottir]

Does anyone know where we stand with this....….My wife has finance on a motorbike which has the logbook in my name, if I were to apply for a DRO would this bike be classed as an asset I own?

That is a question you would have to ask a debt specialist, however I know the V5C for my car does say this does not confirm ownership. I am afraid we are not qualified here to give advice just opinions and our experiences.

[Roger]

Hello, I entered an IVA in August 2021 after COVID forced me to close my used car sales business leaving me with about 30k of unsecured debt. Since starting the IVA I was told it should of been bankruptcy in the first place.

Currently we are struggling with our budget and are using credit every month so I'm considering stopping paying my IVA for 5 months in order to use the IVA payment money (£120) to save for a bankruptcy application. The debt included in the IVA is all personal in my name that I took out during being director of my ltd business, I have no assets or savings, nothing.

Is this something I can do without causing major issues?

utter and dangerous twaddle . Being in an Iva (as long as you keep paying ) stops court action
https://www.gov.uk/options-for-deali...20your%20debts.

".. Your IVA can be cancelled by the insolvency practitioner if you do not keep up your repayments. The insolvency practitioner can make you bankrupt...."

So we go back again to the AAD advice
The AAD Diary of Debts as a starting point.
Because these are hidden behind that IVF aren't they.
I had a Personal IVF only to discover the Debts were flawed to say the least!

This will enable AAD members to advise or otherwise

Type of account -
Date commenced -
Approx balance -
Date last paid -
Are you on arrangement or not paying -
Account owner

[Dottir]

I notice you did not highlight the important piece
If you do not keep up your repayments

The IVA is in place, a diary at this point seems very low on the list of priorities

[Roger]

I notice you did not highlight the important piece
If you do not keep up your repayments

The IVA is in place, a diary at this point seems very low on the list of priorities

Because clearly that is NOT the only reason! They are NOT a Charity are they!
These are siblings off the Debt Industry! Entraping the Debtor into paying whether EN or NOT!

Starts with a review of Income and Expenditure!
BUT this is clearly wrong because "WE ARE USING CREDIT EVERY MONTH"!

Dottir ignores the blatantly obvious that sydneyshaw is getting into MORE and deeper DEBT! over and above that in the IVA! Its NOT WORKING!!!

sydneyshaw you are very welcome to AAD because so many of us know about being caught in this DEBT spiral and it seems the looming threat of losing everything that you have worked for!

Please start a AAD Diary because this was for ME and so many others on this site the road to Peace of Mind and becoming DEBT Free
Taking control of your Life.

Type of account -
Date commenced -
Approx balance -
Date last paid -
Are you on arrangement or not paying -
Account owner

[Roger]

If you are struggling with Income , and you clearly are, Borrowing to repay Debt is suicide.

Look at this https://all-about-debt.co.uk/forum/f...79#post1549279
and especially Joanna Connolly comment.

The whole is well worth reading!
"..
Solicitors can, and do, advise on whether advice provided by Debt Management companies is correct and also can advise on whether a debt management plan or an IVA have been missold or the contracts in either case has not been adhered to by the provider..
.."

Please at least take up that first free Consulation with JCS
But it will help them and you if you can set out the debts in a AAD Diary format!

At the least it would give background to the Consulation!