IVAs and moving abroadIf you’re planning to relocate overseas, you’re probably wondering what the implications of IVAs and moving abroad are. Here we break down what happens:
Can I continue my IVA while living abroad?Yes, you can continue with an IVA if you move abroad, as long as you can keep up your repayments while living there.
But some people discover that the cost of living abroad is actually a lot higher than they thought and this can cause trouble when it comes to making IVA repayments.
If you cannot make your repayments after a move abroad your IVA could fail and your creditors will be able to chase you again for the debts. We understand that you don’t want this to happen and so it’s important you get help if you need it.
What can I do if I can’t make my IVA repayments?Get in contact with your Insolvency Practitioner as early as you possibly can.
By speaking to your Insolvency Practitioner they can try to work out a solution, so you may be able to continue your IVA. They might suggest a reduced repayment amount if your creditors agree to this.
Should I sell my home before moving abroad with an IVA?Most people in an IVA do not sell their home before moving abroad. This is because if you sell your home, any equity within the property may need to be paid into your arrangement.
Renting out the property while living abroad is an option,assuming that this does not affect your monthly payments to the IVA.
If you want to use the funds from your house sale to cover the cost of your relocation abroad then this is something that can be discussed directly with your Insolvency Practitioner, to see if your creditors may agree to this.
Should I let my IVA fail if I am moving abroad or cannot make repayments?No, we do not recommend doing this.
It may be tempting to simply let your IVA fail and to leave behind the debt you owe in the UK but when you return to the UK, you will have to repay this debt again and any charges or interest will still apply.
Can I file for bankruptcy from abroad?Yes, if you think that continuing to make repayments on your IVA isn’t possible and there are no other alternative solutions, it may be possible to file for bankruptcy while living abroad.
However, we strongly recommend you seek the advice of a debt advisor before taking this route, as well as talking to your Insolvency Practitioner.
What do I need to do, before moving abroad with an IVA?It’s very important that you let your Insolvency Practitioner know about your move and that you give them up to date contact details so that they can make contact.
If you own your home you should also find a way of paying your mortgage and to also find a way to manage the cost of repaying your IVA and living abroad. Your new situation will need to be checked over by your Insolvency Practitioner and a new repayment amount may need to be agreed with your creditors.
For free impartial advice, get in touch with Pay Plan today– our team are here to help Monday to Friday on 0800 280 2816.
*In the case of a one-off lump sum settlement