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What Happens If I Cannot Pay My IVA?
Question:
I am a general advisor and would like to ask you a question regarding IVA’s
If an IVA is revoked by the clients non-payment each month because of redundancy what happens?
Answer:
In most instances if three (3) consecutive payments are missed the IVA can be deemed as failed.
Your client may want to inquire with the supervisor of the IVA as depending on how long they have had the IVA they may be able to modify it, or reduce the payments, but of course if your client is not working, then they may not even be able to pay a reduced payment.
Once they are back working they maybe able to start the IVA back up again. If not a Debt Management Plan or bankruptcy can be options.
It also is possible if the IVA has been failed the IP handling the IVA could move forward to make your client bankrupt. I cannot say as to if they will do this or not as there are many factors involved.
Thank you for letting me help you.
Jon
If you have a bankruptcy question you’d like to ask, just ask using this online form. All help is free.
Source: What Happens If I Cannot Pay My IVA?