Hi all. Just a quick one - my creditors keep ringing for money as my IVA is still in the infant stage. If one of them wants to make me bankrupt, are they worse off than me doing an IVA with them as they won't get as much money? Sorry, not had chance to look at bankrupcy yet, so not clued up on that one but needed an answer fast so thought i'd come here! Thanks!!
Has your IVA actually been accepted by creditors yet? Generally it can be demonstrated that creditors would be worse off by making you bankrupt - and this is something that your IP ought to have already discussed with you at an early stage.
I presume that you have not had your creditors meeting yet by your post. Am I right?
Quite frankly I am surprised that the IP you have chosen to act as your Nominee, has not explained bankruptcy to you and its effects. I would recommend that you ensure that you get full advice about all of the options open to you before you decide which is the best option for you.
Basically your creditors would be much worse off if your were bankrupt for quite a few reasons;
1/ An Income Payments Order or Agreement only lasts for 3 years - not 5 as in an IVA
2/ All money paid into the bankruptcy from income payments and realisations of assets are subject to secretary of state fees at 17% of anything over the first £2,000
3/ The trustee's costs and expenses are likely to be higher than those charged by the Nominee and Supervisor of an IVA.
It is very unlikely that any of your creditors will petition for your bankruptcy - however saying that it really depends on who your creditors are and your personal circumstances. For instance HM Revenue & Customs will always petition if they are a creditor and you have not made any reasonable arrangement to repay them and a bank may petition if they feel that you are hiding an asset of value.
Kind regards, Elizabeth Pywowarczuk, Insolvency Practitioner.
If you would like me to advise you about an IVA and if appropriate propose one for you, please visit my website at www.liberta.uk.com
Your Nominee or Advisor must discuss all options with you prior to suggesting an IVA. He/she must give you appropriate advice and go through all options depending upon your circumstances of whether bankruptcy an IVA or DMP or a Consolidation Loan is appropriate. To me your chosen one has not.
Visit www.iva.com and see reviews on practitioners that give correct and appropriate advice before you sighn up or go any further.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
