It is possible to move abroad during an IVA. However unless you are able to maintain the ongoing payments the Arrangement could fail.
Included in this article:
- Can you move abroad during an IVA?
- What if you can’t afford your ongoing payments?
- Could you let your IVA fail and go bankrupt?
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Can you Move Abroad during an IVA?
In principle there is nothing to stop you moving abroad during an IVA. It is possible to carry on with the agreement from a different country.
However, to keep the Arrangement going, you will have to maintain the monthly payments.
You must therefore consider the likely impact of the move on your future income and living expenses. You should try and forecast your budgets to make sure you have sufficient surplus income to keep your IVA going.
Remember that the cost of living in the country you are moving to might be higher than you are used to. You should reflect this in your projected expenses budget.
Struggling to get your head round all of this? We can Help. Give us a call (0800 011 4712) or complete the form at the bottom of this page. The advice is free and confidential.
What if you can’t afford your ongoing payments?
If you are concerned that you will not be able to maintain your payments after you move you should discuss this with your IVA Company. It may be possible to keep the Arrangement going by reducing them.
One of the issues with moving abroad is that you never really know what to expect until you arrive. If after you move you find your payments are too high speak to your IVA company to see if they can be reduced.
Where you believe you will not be able to continue paying after you move an alternative option might be to settle the Arrangement early. This can be done if you are able to make a cash lump sum available.
The one off costs associated with moving abroad may mean you can’t maintain your IVA payments in the short term. If so speak to your Insolvency Practitioner about taking a payment break.
Could you let your IVA fail and go bankrupt?
If you know you will be unable to maintain your monthly payments after you move abroad you may have to consider allowing your IVA to fail. However if this happens you will remain liable for any outstanding debt.
It is not a good idea to leave without dealing with this problem. It is possible that you will not be chased for payment while you are overseas. However if and when you return to the UK the debts will catch up with you again.
If you are not a home owner or you have little or no equity in your property a sensible course of action could be to go Bankrupt. You would then have no debt to worry about and can have a fresh start in your new country.
Planning to move abroad during an IVA and need more advice? Give us a call (0800 011 4712) or complete the form at the bottom of this page. It’s free and confidential.