What happens to me if I don't pay my IVA?

[Callean]

I joined this forum to ask some advice on what I should do with regards to an IVA that I took out August last year, before the energy bills and general cost of living went up. I am struggling to make ends meet and pay my IVA, already. When the arrangement was agreed, my teenage son was living with me. However, now he lives with dad. I no longer have the chilld and housing benefit, or child tax credts. So although I am working more hours, over all, I am earning less. I was 'sold' an IVA by a company that said it would never be unaffordable and be 'flexible' based on my needs. Interestingly, when my son was living with me, they wanted to take some child maintenance money from me as part of monthly IVA agreement. However, now he is not living with me full time (but he does stay with me 3 nights a week) they will not factor in that as an expense - they are treating my household as if I am a single person living on my wage. Effectively, I am paying for both of us, for just under half of the week. The other problem I have is that I am on a zero-hour contract. This didn't matter when I was the legal carer for my son. My income came in about the same, at £1,200 P.M., whether I was working or not (as the rent payments increased or decreased depending on my earnings). However, now, if I don't work one month, I don't get paid. Basically, I have to live on £312 Universal Credit, which really just covers my outgoings. I thought working 55-hour weeks when the work was available would solve this problem. This isn't the case. The IVA company do not seem to understand that I will need to save more money in order to cope with the months where there is no work available. This wasn't the impression they gave me when I agreed to it. So they now want my monthly payment of £90 to go up, rather than down. I would like some advice. I am not a home-owner, I live in a council property. However, I do have car hire purchase. I am only 1 year into the HP agreement on my car. I need it for work, however, I understand that I cannot apply for a DRO because the car is worth more than £2,000 (even though I don't own it yet). If I go bankrupt, I believe that the HP agreement on my car will stop and I will have to hand the car back, as a condition of this. Is this the case? Also, will I be liable for the additional fees of the IVA? I have considered asking a family member to take over ownership of the car, as a way out. My worry is that if I do this and ask for a DRO, the same problem with my zero-hour contract will occur, although I could just keep my hours to a monthly minimum that would ensure I don't go over the £75 allowed as extra money when entering a DRO. Currently, a family member is paying for the car anyway, but it is still in my name. The stress is ruining my health. I already have mental health issues and this has worsened. Although the IVA company agreed to the £90p.m, they seem dedicated to making me pay more. I don't have NHS dentist help anymore and spent £300 on dental treatment (not cosmetic). I own 2 dogs and an unexpected vet bill has set me back. I am relying too heavily on a family member to help me. I don't think I can cope financially or mentally with living like this for a further 5-6 years. I stupidly took the IVA out without fully investigating the circumstances. Nor did I think about unexpected financial changes and what this could mean while in an IVA. I am reluctant to ask this same family member for yet more favours, as being the owner of my car is very different to merely helping out with payments on a temporary basis. I would like to know if I would lose the car altogether if I didn't pay my IVA? However, my circumstances are just so stressful, I don't think I will be able to keep my job for 5 years anyway, and I feel I may find myself in the same situation a few years down the line, having paid lots more into an IVA, but still end up bankrupt anyway. Due to my mental health, I have not worked full-time for 16 years. I am working 50+ hours while the work is available, to save for those months where I will have nothing, but I have overwhelming feelings of being unable to cope. I cannot sleep for the stress of it all. I would like to know if going bankrupt would mean I would lose my laptop and my dogs (they are not expensive pedigrees) or would it just be my car that goes? Also, should the family member take on ownership of the car, would this be accepted? Would I still be able to factor in car insurance, road tax, etc, into a DRO? Step Change won't advice me while I am in an IVA, but I do need to make a more informed choice before choosing to default on my IVA, than I did when I jumped into my IVA. Do I even have a choice to default on an IVA? To do this, would it mean I would have to work much less hours whether the work was available or not? Any advice would be really appreciated. Do I have to pay thousands of pounds to go bankrupt? IF I asked for a DRO, would that debt method allow me to include the expenses of my son living here 3 days a week, or would they take the same view as the government and class me a single, with only myself to provide for? Thanks for reading

[atticus]

I must confess that I have not read all of that - your post is presented as one long and hard to digest paragraph.

Nevertheless, you are clearly in a difficult situation that is causing you a great deal of worry.

Default in an IVA often leads to the debtor being made bankrupt. This may make things worse for you, or it may come as a relief and the first step on a long road of rebuilding your life.

Can I ask if you have contacted a debt advice charity such as StepChange? https://www.stepchange.org/

[MIKE770]

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