Questions about Individual Voluntary Arrangements and Insolvency.

Moderators: TalbotWoods, JaneClack

By mamaden1
#472575 Hi,
I am now in an IVA but still feel I should have gone bankrupt but I can't afford to.
Can I still go bankrupt if I do somehow get the money together at a later date? If so do I just apply or do I have to fail the IVA?
Secondly, will I really be any better off going bankrupt? I have no assets, my car is worth about £300 & I rent my home, How much of my surplus would I need to pay into the bankruptcy? Would it be less than what I pay the IVA? I currently have no money left at the end of the month & feel that I am working just to pay my bills and the IVA.
Also I have received a "General Form of Judgment or Order" from the court regarding my water rates (This was included in my IVA) it says the following and I have no idea what it means.:
"Upon reading a letter from the claimant. (I haven't written the court a letter) It is ordered that 1. The order to attend court for questioning be adjourned generally with liberty to restore. 2. If the matter is not restored by 4pm on 15th December 2016 the matter will be struck out. Dated December 15th 2015"
Can anyone tell me what that is about?
Thank you in advance for any help.
User avatar
By JaneClack
#472576 Hi Mamaden

We have advised on bankruptcy before - way back in 2012 you were thinking of this. You are in rented accommodation, have few assets, live in rented accommodation and car is worth no more than £300. It all depends on your disposable income as anything more than £20 and you would get an income payments arrangement for 36 months which could go up or down as circumstances changed. It is always going to be quicker and cheaper than an IVA. Why did you choose an IVA - did you have something to protect?

Technically you can go bankrupt although some courts will say you are in an IVA so should not until this fails but if you cannot afford your IVA it will fail anyway. If you are really unhappy you should speak to your supervisor and discuss it. When you say your IVA leaves you with enough to pay your bills and the IVA - does that mean it does not really leave you enough to live on. This is what you need to be sure about as not paying into the IVA would save you the money to afford the bankruptcy deposit but then you would have to pay an income payments arrangement when you entered bankruptcy as the Official Receiver will also need an income and expenditure.

If your IVA has been approved then you contact your supervisor and explain about the General Form of Judgment as the IVA would supersede this and they should be contacting the court to let them know. You have missed the date anyway - and it may be that the letter was written by your supervisor. At any rate the debt is in your IVA.