Certificate of Default and Notice of Termination

[j.b]

I'm in the 1st year of my IVA,i've missed 2 payments and recieved a Certificate of Default and Notice of Termination.On recieving this i didn't pay in my next £310 as the copy of the reciepts and payments shows that the nominee has taken £1350 of £1460 and £110 for IVA costs.Not a penny going to creditors!My next payment would have gone to the nominee also,is this fair?More importantly,where do i go from here,any advice would be most welcome.

[Cybus]

It all depends on the terms of the arrangement.
In a large number of cases, the R3 Standard Terms and conditions apply. Basically if you fall two months in arrears, not necessarily consecutive, you are given a period of 28 days to rectify the position ooffer proposals to rectify the position otherwise the arrangement fails.
On occasion those terms are modified out of the arrangement and replaced with a requirement to fail the arrangement on falling two months in to arrears.
It is not unusual for no funds to be paid to creditors during the first year of the arrangement.
In order to determine what happens next, you should review the proposals and ascertain if your case has been handled correctly by the IP. ie has he followed the terms re failure or default

Tell it like it is.

[MelanieGiles]

Hi jb and welcome to the forum

It is quite usual during the first few months of an IVA for your IP to be paid for the work they have done leading up to the IVA, and as this is with the agreement of creditors I do not think that this should be of concern. From an IP's perspective, it is entirely fair that the nominee be paid the fee you agreed to pay them, and creditors will get their money in due course.

What has led to you missing payments? And do you feel able to continue with the IVA?

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[j.b]

Thanks for the replies,i missed payments as i was off work due to a broken bone in hand,6 weeks in plastercast(machine operater)and my father passing.
I do feel i can continue with the IVA if i can catch up.My IP has told me he has notified my creditors and they will pursue the debt again via bankruptcy,the end of the road apparently.
I would rather pay my creditors,but to them it must look like i haven't made any effort at all,is bankruptcy my only option?

[MelanieGiles]

Your payments have been missed for very good reasons, and as you are now able to recommence your payments I suggest that you speak to your IP as soon as possible to get back on track. It would be very unlikely that and IVA would fail for want of two missed paymentss, but it may need to be formally varied to extend by two months at the end to make up the difference. Speak to your IP directly in this regard.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp