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If you are struggling with your IVA get advice and help here
By Unlucky
#27005
Hi. I am having problems with my IVA. I have been paying £210 for about 18 months but have not been able to make any payments for the past 3 months. Unfortunately things have cropped up, my boiler needed replacing and my car repairs were higher than expected. As well as not paying my IVA I have now borrowed from payday loans as well.

I am a homeowner but there is no equity. I am thinking of failing the IVA and going bankrupt. Do you think that is a sensible option for me?
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By Steve Jackson
#27016
Hello Unlucky and welcome to the forum.

Have you spoken to your IVA company about the problems? Even at this late stage I am sure they will not want to see your IVA fail. They may be able to include the payday loans you have taken into your IVA and allow you to start making your payments again. This should always be your first port of call.
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By Geraldine
#27029
Hello Unlucky

Steve is quite right, you should always speak you your IP first and see if there is anything you can do to save your IVA. However if you really feel that it is no longer for you then given your property has no equity there should be no risk to your home if you go bankrupt as long as you can buy back the title of the property straight away. My suggestion would be as a home owner you should definitely speak to one of the beatmydebt.com experts before deciding on bankruptcy so they can explain the affects to you. But from what you have said it certainly sounds like an option.
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By Hayden
#27042
Always have a conversation with your IP first Unlucky. However if you feel they are unwilling to help with adding these extra debts then I would agree with Steve and Geraldine that allowing your IVA to fail and then bankruptcy does seem a sensible next step.
By Unlucky
#27049
Thanks for all your replies. I have thought long and hard about the whole situation and for me I think allowing my IVA fail and just going bankrupt is the best thing. If I stick with my IVA I am going to have to struggle for another 3.5-4.5 years anyway which to be honest I do not think I will be able to do as my job also looks like it might be at risk. I have told my IP to fail my IVA and i am going to go down the bankruptcy route. Might call one of you guys to get more info on how to buy back my house but I am not really worried about that as the equity is about minus £25k
By Carla
#27057
Hi Unlucky, sorry to hear your IVA is not working for you. Given you are a home owner even though it is in negative equity I would definitely speak to one of the experts here at BeatMyDebt.com before you go down the bankruptcy route.
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By James Falla
#27083
Hello Unlucky

If you feel that your IVA is simply not affordable and your property is in negative equity then allowing the arrangement to fail and declaring yoursefl bankrupt is a sensible option to look at. By all means give me a call at BeatMyDebt.com and I would be happy to chat things through with you.
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By Steve Jackson
#27099
Going bankrupt does seem the best solution for you now Unlucky. We will be happy to advise you if you want to give us a call.