Bankruptcy Hearing

[iallen]

i have bankruptcy hearing tomorrow arranged to hear the petion from on of my creditors, i am in the process of setting up an IVA however the solictors that is reperensting the creditors has sent me an email saying that the agents have been instructed to secure the order tomorrow. any advice please

[MelanieGiles]

Answered on your later post!

[Reviva UK]

Hi iallen

just so that you know the judge would probably postpone the bankruptcy hearing - with much protest by the solicitor acting for the cred. However if you are made bankrupt all is not lost you can always propose an IVA and it is likely that the return to the crediors will be greater thank in B.

Your IP - assuming that you have one that is switched on! - can propose an IVA provided they get a move on and have the B annulled. I am currently doing this for a couple of clients. Alternatively the Official receiver can propose a "Fast Track IVA" although they don't seem to keen on these recently.

either way you definately need to attend and take ALL the documents from your IVA company to prove to the judge that things are in hand.

Good luck and don't be worried by the judge they are OK. Just please remember NOT to get emotional and try to think clearly then you will be fine.

[MelanieGiles]

Has the OR ever been interested in fast-track IVA's Paul!!

[Reviva UK]

always good to give them the opportunity to do one as they advertise them on their web site. However I believe it is sensible to have a good IP ready to roll and prepared to speak to the OR just after the petition is made.

You have probably seen some horrors in your time. I have seen several "small" creditors petitioning for B for debts for 1 - 2K and the people have houses with 100K plus equity.

By the time it is finished it could well cost them 30k or more.

[MelanieGiles]

I also practice in Northern Ireland - in a land where the Rating Authorities just use bankruptcy proceedings as a method of collecting debts. I have several annulment cases on the go at the moment as a result of debts less than £1,500, and in these cases we really try to keep our costs to an absolute minimum but you are still looking at between £7,500 and £10,000 taking account OR and petitioning costs. Crazy!