can you please advise who should pay b/r cost

[ivafailling]

Hi.

can you please advise who should pay the cost of the b/r as i failling in my IVA after 4 years.

I had an email from my ip staing if i didnt make a payment in 7 days they would fail my arrangement

When i advised i was thinking of going the br route, they said ok, let us know when youve done, and advised i had to pay the costs myself.

Im sure in my origional arrangement i read that they set aside 500 pounds to pay for this in the event of the arrangemnet failling???

cheers.

[scaredkez]

ivafailing sorry to here after 4 yrs your iva is failing, get your original out and see if it states on that if they have made a provision in your proposal to set aside monies to petition for your BR should your iva fail, if not it is currently £485 to petition your own BR
good luck
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[mick.i]

After 4 years you are so close to the finishing line, is there no way you can continue for the final year?

[MelanieGiles]

Hi ivafailing and sorry to hear your news

You will need to check the documents carefully. My gut feeling is that the IP probably will have to fund the costs of bankruptcy if your IVA was taken out four years ago, but this will depend upon the actual terms. Personally, if you were my client and the reasons for your failure are genuine, I would go to creditors to see if they would accept what you had paid in full and final settlement of all liabilities, thus bringing the IVA to an end and avoiding the need for you to be bankrupted. This would have to be done by formal variation.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[ivafailling]

Hi Mel, and thanks for the advice.

I ma 4 years in, but have made exactly half the payments, i had a 6 month break which has dragged into a year.

My ip sayd because i have had a meeting of creditors to get the 6 month break and have not paid for 9 months, no money is avaiulable for me so i have to fund myself.

I have paid approx 19 grand into the arrangement.

My reasons are genuime, since the arrangemnet marriage, stepdaughter and newborn baby.

Do you think i may still be in with a chance of the ip asking the creditors to bring it an end?

[MelanieGiles]

Sorry - I don't necessarily concur with that opinion - check the documents as he either has to petition or is not required to.

Ask the IP to let you know how much has already been distributed to creditors, and what the final dividend would be if he did call a creditors meeting to ascertain creditors views. I can't really advise without knowing the full facts of your case, but in my book anything is worth a try.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[iva_squirrel]

Good evening,

I totally agree with Melanie. The only real failure in life is the failure to try. It would be a real shame to see your iva failing after you've paid £19K. I hope your IP can see that you are genuinly having a difficult time.

Good luck.




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[ivafailling]

Thanks, im trying to dig out my origional paperwork and see exactly whats there.

Could you advise where i stand re upcoming CCJs, and in paticular one Magistrates court finr i already have?

Cheers.

[MelanieGiles]

You cannot have forthcoming CCJs as you are already in an IVA, unless you have incurred additional debts since the IVA was accepted - which of course also would mean a default on your part. Fines awarded in the Magistrates Court are not captured by any form of insolvency proceedings, and must therefore be paid.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[ivafailling]

Hi mel, these are for motoring offences (no road tax, magistrates) and rent arrears (ccj)from last year.

cheers.

[MelanieGiles]

OK - but they still need to be paid, you cannot include fines in an IVA or bankruptcy proceedings unfortunately.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[ivafailling]

hi Mel.

Qoute origional agreement.

Should any 2 payments become in arrears or fall below the specified level without the sanction of the supervisor,the arrangment will be deemed to have failed.The supervisor will imediately petition for the debtors bankruptcy pursuant to section 264(1) of the insolvency act. and shall retain sufficeint funds to do so.Petition funds are to rank ahead of supervisors fees.

I the event the debtor fails to make adequate paymnents under the arrangemnet for the supervisor to have raised sufficient fdunds to bankrupt the debtor the supervisor may withdraw and declare the arrangment has failed, in order that any creditor is therby free to issue proceedings in bancruptcy against the debtor.


I have payed into the arrangement approx £15000

[MelanieGiles]

Seems pretty cut and dried to me - when you have missed two payments he has to petition - and those costs are to be ahead of his own fees. Suggest you have another chat with him, but do check that creditors did not modify this out at the creditors meeting. Your Chairman's Report of those proceedings will confirm this.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk