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IVA Archives - Bankruptcy UK



How Can I leave My IVA | Call Today To Discuss Options

How can I leave my IVA

I’ve been given the runaround by my IVA company once too often and I want out. When I started they told me the payments would be £140 per month, but now they want to increase the payments to £220 pm and it’s just too much. I’ve still got four years to go and I can’t see any end in sight.

If you have taken the decision to leave your IVA and enter into bankruptcy, there is a sequence of events that needs to take place and we can help you through the process. Having taken almost 4,000 people through the process, there is not much that we don’t know and we are confident of the outcome.

One of the biggest advantages of leaving an IVA in favour of bankruptcy is that your income and expenditure is reassessed under the more lenient bankruptcy criteria and there is rarely a monthly payment. The other big advantage, of course, is that bankruptcy only lasts for 12 months and your credit rating rapidly repairs itself once discharged. You can now get a mortgage just 36 months after discharge.

The thing that concerns people most about leaving and entering bankruptcy is the cost ‘how will I be able to afford it?’ It’s simple,  the payments that you were making will be used to fund the cost over a number of months. You need to remember that it will take at least 5-6 months before you receive a letter of termination from the IVA company (required for bankruptcy) and it will be possible to cover all of the costs in this time.

The first thing you need to do is to stop making the IVA payments immediately. If you don’t have the confidence to do this, we will write to the company and advise that you will be exiting the IVA. There are no repercussions for stopping payments; you have the right to leave just as you had the right to enter into it in the first place. It will not result in any Bailiff or Debt Collector activity.

Once you have missed three payments you will receive a letter of default and if this is ignored, the IVA company will approach the creditors with a view to terminating the agreement 6-8 weeks later. Ironically, despite going through the process of leaving the IVA, it will continue to protect you from your creditors until such time as the IVA is terminated.

However, this will not be the case once the IVA is terminated and unless an alternate course of action is taken – such as bankruptcy – you will be contacted again by creditors and debt collectors. Bankruptcy is applied for online these days; you no longer have to attend court and feel embarrassed, so take the plunge and give us a call.

Bankruptcy UK has been helping people with insolvency since 1998 and has the experience to get you the right result every time. We will avoid jargon and confirm all discussions by email within 30 minutes. Call us for a chat about your circumstances on 01425 600129.

IVA | Increased IVA Costs | What are my options

My IVA company wants more money – Can You Help

Increased IVA Costs, What are my options? People are generally so fixed on getting relief from creditor phone calls and letters and the sheer pressure of being in debt that they don’t look properly at whether or not the IVA agreement they are entering is actually going to work in the long run. There is usually hope attached to circumstances improving and that when the time comes they will be able to manage the increased payment.

Hi. I’ve been living in the UK for 3 years now. I left some unpaid debts in Poland, which i tried to resolve by entering into an IVA in the UK. Unfortunately, they have increased IVA costs by 60% for the second year and I can’t afford it. Can you help me leave the IVA and go bankrupt?

Yes we can, but we need a bit more information about your circumstances so please call us on 01425 600129 when possible. You mentioned that they are looking for higher payments after the first year. You might be surprised at how often this happens and it is the very reason why so many people abandon their IVAs in favour of bankruptcy. What starts off as a payment of £90 quickly escalates to £170, leaving people in difficulty.


We will quickly determine whether you will be asked for a monthly payment in bankruptcy and start the process for leaving the IVA. It is often the case that there is no payment at all, or at the very worst, a greatly reduced one. We will also prepare a letter for you to send to the IVA company and prepare everything for the online bankruptcy application (you don’t have to attend court these days).

Bankruptcy UK has been helping people with insolvency since 1998 and has the experience to get you the right result every time. We will avoid jargon and confirm all discussions by email within 30 minutes. Call us for a chat about your circumstances on 01425 600129.

Why Does my IVA Company Ignore Me?

When I entered into an IVA about 9 months ago my IVA company was ever so helpful, but now I have problems it’s almost impossible to get hold of them. I have left  messages and sent emails, but nobody comes back to me. Why does my IVA company ignore me?

We come across a lot of this and it always seems to be when there’s a problem. IVA companies are notoriously slow in getting back to people, probably because they know it’s just a matter of time before the client realises they should never have entered the IVA in the first place. IVAs are designed to protect assets such as property portfolios and businesses, not for everyday people. If you are in rented and holding down a regular job like the rest of us, bankruptcy is the answer. Amazingly, people on DLA and other benefits are also placed in IVAs when there is absolutely no chance of there being a monthly payment in bankruptcy.

There are reasons for this and it comes down to money. IVA companies pocket the first two year’s contributions for themselves with only a trickle of money going to the creditors. Speaking of which, the original creditors would have long since sold the debt on to debt collectors and it is these companies that eventually receive a fraction of your monthly payment. We often hear people say ‘we entered an IVA because we wanted to repay the debt’ but this is a fallacy. IVAs are a grand illusion much the same as David Copperfield making an elephant disappear on stage.

Bankruptcy UK has been helping people with bankruptcy since 1998 and has the experience to get the best result every time. We will avoid jargon and confirm all discussions by email within 30 minutes. Feel free to call us for a chat about your circumstances on 01425 600129.

Self Employed IVA

Self Employed IVA

IVAs were created in 1986 specifically for small business owners with cash flow difficulties. The first year that IVA’s were introduced there were only 11 in total that were sold. Now there are around 250,000 people in England and Wales who have signed up to the IVA Arrangement.

A Self Employed Person who is considering an IVA as a debt solution must face true and sometimes challenging facts about the business they operate. You have to be honest about the position you are in and whether or not there is realistically an opportunity to trade your way out of debt with your business.

In order for Self Employes IVA’s to work the business owner will have to produce a business plan in order that creditors can see for themselves that the business has a good prospect of completing the arrangement.

Although it may be the last thing that you want to do, it is often a very good way of identifying the weaknesses in your business.  is to provide you with the information you need to make an informed decision.

Our objective is to identify on your first call with us exactly what is going on and attempt to identify what and when its gone wrong. Our priority is to make sure you understand what is involved in the process and what

bankruptcy-solicitorsteps are needed to make certain things happen that need to happen.  It may be that you are married or in a relationship where the family unit is at risk of losing the home or assets that would be uncomfortable to lose. The facts are that all sorts of people get into all sorts of financial complications and simply cant see the wood for the trees. It is not uncommon for people to feel totally depressed and not want to face the world because they simply cannot see what they can do to make a difference. They feel like giving up.

This is natural but if you are in that position or moving towards that position then we want to hear from you. Our experience in Business and financial survival is all about making mostly small adjustments that make a significant difference.

If we need to write or contact a particular creditor to release the pressure or get you more time then we will do this without delay.

If you have time then you can make more relaxed decisions and communicate effectively with the people around you that need it. You have to be able to adapt and work quickly to action what needs to be done.

Bankruptcy UK offers a full bankruptcy administration service, including dealing with creditors, completing the all important Income and Expenditure, professional completion of the relevant paperwork and bankruptcy help at all levels. Call us on 01425 600129 or 0800 5977 977 for a chat about your circumstances.



Commercial and Personal Debt Help

Commercial and Personal Debt Help


We are Bankruptcy.co.uk who provide commercial and personal debt help. Pre Bankruptcy Consultation. This gives you the opportunity to discuss with a experienced debt solution specialist that can fully understand who you are and what it is that you have surrounding you that is causing the problem areas in your financial world.


Our team provides help and assistance with debt levels of £25k and above. Personal and commercial debt solution specialists that will provide you with an insight of options that are available to you. We appreciate that the majority of people leave it last minute and beyond before they look for help. Or they want help but don’t know how to look or find the help they need. This type of Commercial and Personal Debt Help is not available on the high street.

We provide telephone assistance or via Skype if preferred and will complete a fact find. This fact find enables us to see exactly where the problems are. You will be surprised that it is not as complicated as you may think and can often get a good idea by just asking under 10 questions. All conversations are followed up with a report once an income and expenditure has been completed. We are fully transparent with pricing and fees.

Our initial objective is to be able to stabilise you by providing you with information relating to your specific circumstances that will help and assist you in either coming to terms with what is going on presently, and more importantly where the actions being taken against you will lead.  Once you know this then you can start to position yourself. This in itself often makes clients feel much better as they know where they are going and what they need to do.

We offer a 3rd party intermediary service for people that are struggling to communicate with aggressive creditors, and or Trustees in Bankruptcy, or Supervisors of IV

For a free no obligation consultation then call us on 01425 600129


IVA Payments

bankruptcy-solicitorIVA Payments


I’m thinking of abandoning my IVA. I am two and a half years into an IVA and wondering if bankruptcy might have been a better solution. My total debt is £35,000 from loans and credit cards. My only asset is a car worth about £800 and I live in rented accommodation.

My IVA payments take into account total household income despite the debts having nothing to do with my partner, I had them long before meeting him. I have to pay 50% of household expenses, but my IVA payments company says he should pay more, as he earns more. How can this be right, seeing they aren’t even his debts?

Although it’s true that total household income is taken into account when assessing affordability, it should only be what he contributes to the household that should be considered and not his entire income.

Therefore, if he earns £1200 per month but has personal expenses of £400 (loans, credit cards, etc), then only £800 should be considered. The IVA company is almost certainly aware of this, but will milk the situation for all it’s worth as this is their income – don’t believe for a minute that your payment is going to the creditors.

However, what concerns us more than anything is why you are in an IVA in the first place, as you have no assets. You will definitely keep the car and the rental isn’t under threat. IVA companies are ruthless exploiters of people’s fear of bankruptcy and rarely, if ever, fully explain both options when approached.

The first 20 payments of an IVA go directly into the IVA companies’ pockets and not a penny goes to the creditors. In fact, in most cases, the original creditors would have long since sold the debt on to third party debt collectors and these are the people who will eventually receive a trickle of money from the IVA company. Our speciality is taking people out of IVAs and into the protection of bankruptcy, so call us for a chat if you need assistance.

Bankruptcy UK specialises in taking people through the bankruptcy process and submitting bankruptcy applications online. Court appearances are no longer required for bankruptcy. Call us for an informal chat about your circumstances on 01425 600129.

My IVA already costs £280pm .. now they want more

My IVA already costs £280pm .. now they want more

I’ve been in an IVA for a year with debts of £27,000 and the IVA Costs are £280pm, which leaves me with absolutely nothing every month. Now my IVA company is saying they got the numbers wrong and want another £70pm. How can this be right?

Precisely, it’s not right. The number of people we speak to who should have been recommended bankruptcy at the outset, is staggering. If you are living in rented and holding down an everyday job like the rest of us, an IVA is of little use to you. That’s because the primary function of an IVA is to protect expensive assets such as properties with equity and businesses. If you don’t have these things you have nothing to lose and bankruptcy is the solution. IVA companies make a mint out of exploiting people’s fear of bankruptcy. Once in an IVA a regular pattern emerges: it is extremely difficult to speak to anybody, there are constant reviews, there are frequent requests for bank statements and more money, and there is no understanding if things go wrong (pay cuts, illness, etc).

Did you know that the first 20 payments of any IVA go directly to the IVA company and not a penny goes to the creditors? The original creditors would have long since sold the debt to third party debt collectors anyway and are out of the picture. So why would you choose to remain in an IVA when you’re not even repaying the people you borrowed from? Many people struggle to meet the high monthly payments of an IVA when bankruptcy should have been recommended in the first place. It is far quicker and much fairer – the courts have no interest in making money out of you.

How long does bankruptcy stay on my credit report?

Many people get confused between what happens to their credit report and how long they remain on the Insolvency Register, so let’s look at the latter first.

All bad credit, including CCJs, late payments, returned direct debits and bankruptcies reflects on your credit report for six years, which underlines the importance of keeping on top of things.

The Insolvency Register on the other hand, is a formal record of all formal debt arrangements (IVAs, DROs and bankruptcies) and remains in the public domain for 15 months. When a record falls off the Insolvency Register, it does not directly affect your credit record; only time and the correct conducting of your accounts will solve those issues.

Your credit report will obviously be badly affected by bankruptcy, but from a lender’s point of view it is no worse than a history of late / missed payments and CCJs. In fact, we have heard of numerous cases where people have credit scores of 800 plus barely two years after discharge and mortgage brokers make no secret of the fact that you can now get a mortgage three years after discharge.

This would definitely not happen if you struggled along in a Debt Management Plan or IVA for years on end. The trick is to acquire a ‘credit impaired’ credit card as soon as possible and make regular payments on small purchases. The reason for this is that every successful payment records a ‘zero’ next to the creditor’s name (and ‘ones’ for missed payments) and these zeroes are good news for credit ratings.

Feel free to call us with any questions or for bankruptcy help on 01425 600129, we are here to help. Most of our staff are from the financial services sector and have the experience to get you best result every time.

What happens if you stop paying an IVA

You are entitled to leave an IVA just as you were entitled to enter into it in the first place. However, these things are quick and easy to sign up to but not quite so easy to exit. There is a process that will need to be applied in order for the IVA to be terminated and for you to receive a letter of termination from your IVA provider.

You would need to write a letter to the IVA company advising of your intentions, as the court will usually expect sight of an  IVA Letter of Termination. You will receive a ‘Breach of Terms’ letter after missing three payments and if you ignore this, a further letter terminating the agreement will be received 6-8 weeks later. If you exit an IVA and don’t go bankrupt, your creditors will start contacting you all over again, and your level of debt will return to what it was prior to entering the IVA.

A lot of people find it hard to get what they need from some IVA companies that simply have no interest in giving the failed IVAs the service they desperately need. All we can say is that you have to push hard sometimes for what you want and need. keep pushing, send confirmation of cancellation letters by recorded or registered mail. They have a habit of losing things and subsequently a lot of time goes by and you don’t hear anything.

Although IVAs are geared to collect payments from you, a failed IVA may result in you being placed in ‘no mans land’, unless the decision is taken to enter into bankruptcy. If you don’t, your creditors may start pursuing you again. We have taken well over 3,600 out of IVAs and into the protection of bankruptcy, so call us if you have any questions.

Bankruptcy UK offers a full bankruptcy administration service and will submit your bankruptcy application online. Court appearances are no longer required for bankruptcy. Call us for bankruptcy help on 01425 600129 or for an informal chat about your circumstances.

My wife and I both received breach of terms letters re our IVAs and would like to know what happens next

My wife and I both received breach of terms letters re our IVAs and would like to know what happens next

A Breach of Terms letter is usually received when an individual has missed three payments on an IVA and failure to act results in termination of the agreement 6 – 8 weeks later. A Letter of Termination is required by the court to effect bankruptcy, so it is important that this is chased up. Failure to enter into the protection of bankruptcy will result in the creditors contacting you all over again as they attempt to arrange new payment plans. If you leave an IVA prematurely, the debt is as it was before entering into it i.e. you still owe the full amount. Taking people out of IVAs and into bankruptcy is something of a speciality for us so call us if you need help.

Bankruptcy UK offers a full bankruptcy administration service and will submit your bankruptcy application online. Court appearances are no longer required for bankruptcy. Call us for bankruptcy help on 01425 600129 or for an informal chat about your circumstances.



Bankruptcy UK

Bankruptcy UK