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Stuart J
Stuart J, Solicitor
Category: Law
Satisfied Customers: 23791
Experience:  Senior Partner at Berkson Wallace
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What happens if I stop paying an iva, bedford, spoke to Iva

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What happens if I stop paying an iva
JA: Where are you? It matters because laws vary by location.
Customer: bedford
JA: What steps have you taken so far?
Customer: spoke to Iva we live in a caravan in a field we only have my husbands pension he had 2 strokes I have no job no pension and my husband has been paying my Iva and he just doesn’t want to any more he’s paid it for a year and I’m worried silly. The Iva told me to talk to you re bank ruptsy as o asked if a creditor would do that to me, if that’s what will happen fine I’m in an awful position and I can’t afford to
JA: Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: make my self bank rupt

Hello. Thank you for the question. It is my pleasure to assist you with this today.

Please bear with me as I will be online and off-line from time to time and therefore, may be delayed getting back to you. You will receive an email when I reply.

Im sorry to hear this - in order to give you accurate informatio can you give me the background to the IVA and anything that has caused your predicament - thanks

Customer: replied 15 days ago.
My husband had a stroke lost his job and was to ill to work, I was working every hour and couldn’t keep it up we had loads of dept as when he was working he earnt good money. We has very little equity in our house so we decided to live in a caravan , this we have been doing for 3 years it’s a few years old and we have an old car to tow it, we have been stuck in my sisters garden for 14 months because of COVID now we left there and are in a camp site and we have rent and electric to pay the dog died and that cost us nearly £1000 that we are paying monthly the car has had so many problems the heating in the caravan went and cost us a fortune and as my husband had the stroke I need to keep
Him warm he’s in his 70 s and then he had another stroke the whole situation is a night mare

If you stop paying an IVA then it fails and your creditors to make you bankrupt.

If you have no money, the chance is that going bankrupt will be a load of your mind because it gets rid of the payments which you have been struggling to pay.

It’s going to cost you GBP500 to make yourself bankrupt and to my mind it seems a bit stupid bearing in mind that the reason you are going bankrupt is that you can’t pay your debts so where the insolvency service thinks you are going to get 500 quid from, I have no idea.

What you could do in the circumstances of course is simply stop paying everybody, tell them all in writing that you have no assets, you can’t afford to make yourself bankrupt, you cannot pay the IBA and can one of them please make you bankrupt and pay the money just they would be doing you a favour.

If you have not already been in touch with the debt charity Step Change it would be a good idea to do that now.  They are very helpful.  They can write correspondence for you.

Thank you for letting me assist you with your legal question.  I am glad that I was able to help.

I am not certain whether that answers the question for you or not, but I am happy to answer any specific points arising from this.

It will be my pleasure to help you again either further with this or any future questions you have

Kind regards

Customer: replied 15 days ago.
Thank you can you answer one more question for me I’ve paid it for a year will the Iva organiser have had their money for arranging the Iva they were really help full to me and really don’t want to let any one down but feel I have no option.
Also if I can’t be found and I’m not hiding just have no fixed abode would I be made bank rupt with our be summons to court thank you so much for your help I really don’t want to get in trouble

You could be made bankrupt in your absence if that’s what you are thinking.

However why would anybody go to the trouble of making you bankrupt when they are going to get nothing and it’s going to cost them money.

Having said that the Inland Revenue and banks don’t work with any logic and they will go for it.  I think they must think that people are hiding money away and that by making someone bankrupt it will all pop out of the woodwork.  It doesn’t happen.

Customer: replied 15 days ago.
Right well we have a joint account and only my husband pension goes in it the Iva is mine although his name is ***** ***** it, he also owes the hmrc £1300 which we are trying to pay off, so what could they try and do to the bank we have nothing hiding any where.
If they make me bankrupt can some one get access to the bank account with out me knowing could any one take anything out of our account if there were any thing in it. I really am great ful for your advice and will give you a good review I promise.

Each of your debts are totally separate and if you go bankrupt, it doesn’t affect what he owes and they cannot come after him for money that you owe although if anything was joint they would then come after you for the full amount of anything which was joint.

They cannot get access to your bank account without getting a 3rd party debtor order to take money straight out of the account but it has to be a specific amount of money in relation to a specific judgement.

It was my pleasure to assist you. Please come back if anything else crops up and needs clarification.

Thank you for trusting Just Answer with your legal problem.

Customer: replied 15 days ago.
Last question do you think the Iva people have had their fee as I have paid it for a year
Customer: replied 15 days ago.
Also can the Iva people be funny with me and tell me I can’t do as you have advised when I suggested the possibility of being made bank rupt they told me to go to citizens advice

You can bet your bottom dollar that they will get paid at the very beginning.  They don’t like to wait for their money!  They cannot stop you going bankrupt.

Customer: replied 15 days ago.
Thank you so much I know what I’m doing now x

It was my pleasure to assist you. Please come back if anything else crops up and needs clarification.
Thank you for trusting Just Answer with your legal problem.

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