I have £20k in credit card debt and £5k in HMRC debt. I tried to do a lump sum IVA with Step Change but only HMRC turned up to the creditors meeting and they turned it down. I’m now left without enough money to afford bankruptcy and debt collectors want to take me to court.

What can I do? I live alone in rented accommodation, I have no savings, I am trying to get divorced and have dental and legal fees to pay. I am in debt partly because of my abusive ex and I just don’t know what to do.




I have just a few questions to ask, but from what you stated, you have some options, which are good.

What was the amount you offered for the Full and Final IVA?

If the IVA was rejected, where is the money you offered to pay the two accounts?

Why was the IVA rejected?

What advice did Step Change give you when the IVA was rejected? Did they provide you any alternative options?

If your total amount of debt is £30,000 or less, you could consider a DRO or Debt Relief Order. This is similar to going bankrupt, but the fees are much less, the fees are £90.

Are you currently working? As long as any surplus income you may have fits into the DRO criteria, then a relief order is an option.

You could also look into a Token Payment Plan, where you make token payments of £1 a month. This is only good if you think your situation may change and you ill be able to return to making full monthly payments in the near future.

Should a creditor take you to court to try and obtain a CCJ/County Court Judgment, they would not receive anything, and at court you would be given the opportunity to explain your situation and show what you can and cannot afford to pay. This does not mean a CCJ may not be issued, but it would be difficult to enforce if you have no surplus income.

If you do show an amount of surplus income, that could be one reason the IVA was rejected. Creditors want to try and maximise their return, meaning they would take the lump sum offer, but still expect some form of payments for a period of time.

If you can update me with the additional information, I will look more at your situation.



2 Responses

Leave a Reply

Your email address will not be published. Required fields are marked *