forced into bankruptcy?

[jv~]

just been informed by my iva company that they have filed my termination with the court due to defaulting.

will i be forced into bankruptcy? do i have any alternatives?

i really dont want to go bankrupt.

[accgroup]

Hello jv~

Whether your IP is required to petition for your bankruptcy will depend on the terms of your IVA. You should check your proposal and the chairman's report of the meeting of creditors for any modifications. Alternatively you should contact your IP for clarification. Since your IP has not said he is petitioning for your bankruptcy it sounds like he is not required to do so, in which case you will basically be back in the same position as you were before your IVA was approved and you will have to consider all the options available again - bankruptcy, debt management, another IVA, etc.

Hope this helps



AccumaGroup - A large insolvency practitioner service based in Manchester.
www.accumagroup.com

[jv~]

Thanks. I spoke with the IVA company. Very unhelpful, quite rude infact but they said that my creditors will be in touch and that it is unlikely they would petition for bankruptcy as they would not gain anything. I dont trust him though, will check the proposal when I get home - what should I look out for?

[accgroup]

Hi jv~

You need to look for the part of your IVA which deals with what happens in the event of default, some IPs use standard terms and conditions which are attached to the proposal and these have a specific section on default or breach or failure - it will say something alone the lines of "in the event of failure the Supervisor will take steps to petition for the debtor's bankruptcy" or there may be a statement in the proposal which says that "the Supervisor must retain sufficient funds to petition for bankruptcy should the debtor default on the terms of the arrangement". You may find a similar clause in the modifications which were put forward at the meeting of creditors - these should be in the Chairman's Report which your IP should have provided to you after the approval of the IVA.

Sorry to hear that your IP has been rude to you, I hope this advice helps.



AccumaGroup - A large insolvency practitioner service based in Manchester.
www.accumagroup.com

[jv~]

thanks. I really cannot go bankrupt though

[Skippy]

Hi jv~, can I ask why you cannot go BR - do you stand to lose your job or home?

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[jv~]

I wouldnt be able to handle the stigma of bankruptcy i suppose. I want to pay the money I owe but the monthly repayments in the iva were far too much, I was worse off then before when I was making minimum payments.

I am also concerned it may affect my career prospects. The most worrying thing thing was that whoever I spoke to could not give me a definitive list of jobs/careers I would not be able to do.

I checked my propsal (couldnt find the chairman's report) and it says if i miss 3 repayments, even non consecutive then the iva will fail and my creditors will be able to take legal action, including bankruptcy. - But my iva company seem to think it is unlikely the creditors would force me into bankruptcy as i am not a home owner and I have no assets.

What are my options? a debt repayment plan?

Should I wait for my creditors to contact me, or should I approach them?

Thanks

[Skippy]

To be honest the stigma of bankruptcy isn't anywhere near as bad as it used to be. My notice was tucked away at the back of the local paper - you would only find it if you were looking for it. The only people who have mentioned the BR to me are people I have told. Do you have any assets you wish to protect?

What career do you have in mind? If you post it on here one of the experts will be able to advise you.

My IVA proposal had the same modification, but I was told that my IP wouldn't make me BR, and I could wait a long time for the creditors to do it. I just wanted it over and done with, so I did it as soon as I could afford to.

I don't know how much you owe, but a DMP could be an option, although please be aware that this could go on for years, especially if your creditors don't agree to freeze the interest.

Good luck whatever you decide.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[Dominic]

Do not worry about going bankrupt its a device thats all, a means to an end, if you are considering a career in the financial field it may be an issue, but it will be the same if you are in an IVA or DMP.

I considered going bankrupt what stopped me was I would lose my job consisderations about stigmas didn't even come into it, and want for an iva instead.

[jv~]

still havent heard anything from my creditors yet? any advice on what i should do?

[MelanieGiles]

You could try contacting them directly to see what their intentions are, or petition for you own bankruptcy if you are finding the uncertainty a problem.

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

[zoe]

jv~
As Skippy says bankruptcy really isn't as bad as you think!
I tried an IVA but it didn't work out and i dont want credit again anyway!!!!
hope this helps

Zoe
x
Keep your chin up - everything happens for a reason!
View my blog http://zoes.blogs.iva.co.uk/

[rachel33]

I agree with Zoe, I have just been declared BR as my IVA was rejected and I now believe that this has worked out for the best (even though it didn't feel that way at first!) I never want another credit card in my life - ever.
Good luck
Rachel