Your IVA might be rejected outright. Alternatively your creditors could put forward modifications you are unable to accept. If this happens you must decide what to do next.

Included in this article:

• Can you apply for another IVA?
• What alternatives can you consider?
• Will you be forced to go bankrupt?

Has your IVA been rejected? Give us a call (0800 077 6180) or complete the form below to speak to one of our experts

If your IVA is rejected can you apply for another?

You are allowed to put forward another IVA proposal after the first has been rejected. There is nothing to stop you doing this if you wish. However you will need to make some changes.

You should use a different IVA company. They will be able to offer a fresh perspective on your circumstances. It is possible you will need to include things in your new offer that were missed before.

Your new proposal will have to be materially different to the one that was rejected. If you are not making an offer that your creditors feel is better than the first they will reject it again. You may need to review how your surplus income was calculated or consider assets which were previously ignored.

If you are self employed or owe money to HMRC special care needs to be taken when proposing an IVA.

What alternative debt solutions can you consider?

After your IVA is rejected it is sensible to take time and review all of the options open to you. If you are renting or have no equity in your property you might find the best course of action is actually to go bankrupt.

Where you are really struggling to make a payment towards your debt each month bankruptcy could really help. If you have no surplus income you will not have to make any further payments towards your debt. If you do your monthly payments will only last for three years instead of 5-6 in an IVA.

Where you do have equity in your property a Debt Management Plan (DMP) might be a better option. With this solution your home is not taken into account. However depending on how much you can afford to pay each month it can take a long time to become debt free.

An IVA may not be the best solution to manage your debt. Take time to review all you options before simply applying for another IVA.

Will you be forced to go Bankrupt if your IVA is rejected?

You may have heard that if your IVA is rejected you will be forced to go bankrupt. This is not the case. It will be up to you to decide what to do next.

Your IVA Company cannot force you to do anything. They might be able to give you advice about the different solutions available. However they have no power to influence your decision.

The key thing to remember is that you still need to do something. Your debt still exists and you will need to decide what to do next as soon as possible.

Want speak to an experienced debt adviser about the best thing to do after your IVA has been rejected? Call us (0800 077 6180) or complete the form below.