Help Required / New To Forum

[jimmyc]

Hi everyone, I’m new to this forum and am looking some help as I am in a worrying situation at the moment.

I undertook an IVA approx a year and a half ago. However four or five months into the arrangement my circumstances changed. My father took ill with cancer and subsequently had to leave work. I am living at home with parents and increased my rent to them to help them out with bills etc. As a result I got into arrears and had to vary my IVA to take account of the arrears. I then found that I couldn’t keep up with the payments and as a result have not made a payment for the last eight or nine months.

Recently I received a letter from my IP advising that a meeting of my
creditors has been scheduled to either fail my arrangement and issue a certificate of termination and take no further action or fail my arrangement and a voting creditor puts forward funds to issue a bankruptcy petition.

Bankruptcy is not an option I want to take as it could affect my employment status, however I sincerely want to start making payments again and clear any arrears, as I believe I can now meet my obligations at this time. Is it too late to avoid the forthcoming bankruptcy action ?

My IVA was for debts totalling around £22,000.00 and I have no assets as I am living at home with parents. However I do not want to bring any unnecessary aggro to my house as my father is still recovering from his illness.

What is my best plan to move forward and can my bankruptcy affect my parents in any way as I am currently living with them?

Any help would be greatly appreciated.

[iva experts]

Hi Jimmy and Welcome to the Forum!

Sorry to hear about your father's situation, I take it that you did not contact your I.P (supervisor) when your circumstances changed?

When a person is in an IVA, if they fail to make their monthly contribution for 5 months or more then the I.P has to report this to the creditors.

However whatever the I.P instructs would vary from case to case as each IVA case is individual.

Hope this information is of use

Regards. IVA Experts

[Adam Davies]

Hi Jimmyc
I would think that it would be very unlikely that a creditor will stump up the money to make you bankrupt as you have no assets.
You could contact your creditors, once the IVA has been failed, and agree a repaymemt plan with each of them or ask a debt advisory company to set up a debt management plan for you,but make sure that you agree an amount that you can afford.
Regards

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

[jimmyc]

Hi Guys, thanks for your replies.

Andy, if the IVA fails and no creditor files for my bankruptcy, where does that leave me ?

Will the crediors start to contact me again for a repayment plan or will they take no further action ? I know if they took no further action, as I have no assets, I would still be in a financial mess for years to come, that is why I want to get something sorted out that will let me sleep easy at night.

Cheers

[Adam Davies]

Hi
Well thats a hard one to answer.They may well just write off your debt but will probably never tell you that ,so you will always be wondering !! or they may sell on your debt and this "new" company will want you to make arrangements to pay,on a monthly basis.They may even pursue the debt themselves and again you will need to agree a monthly figure with them.
Your probably best to wail until your creditors meeting and see what the outcome is then.
Regards

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

[MelanieGiles]

Hi Jimmy

I am afraid that with a failed IVA you are rather back to square one with your creditors, and they are likely to commence pursuing you for the money again. In these circumstances, bankruptcy proceedings may well be the best option for you, and if the creditors choose not to seek that option - and your Supervisor has insufficient monies to pay for the costs of the petition, then you can always make your own application at Court for a cost of £490.

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

[ivoriva]

I'm sure my proposal has a modification that states funds obtained from me cannot be used to petition by bankruptcy, is this normal?

[MelanieGiles]

I agree with Andy - creditors will ne unlikely to fund a bankruptcy petition, and your Supervisor should probably have retained funds to pay for this in any case.

If there is no bankruptcy, you are really back to square one - with creditors being able to pursue you directly for the balances In these circumstances, you are probably better of filing your own bankruptcy petition - there is a cost of £490 at present, but this may be worth it for peace of mind. A DMP is also an option, but again involves you making regular payments to your creditors. If this has not been possible within the IVA, then you will need to carefully consider whether this is a viable option.

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

[Skippy]

When my IVA failed I was advised that I would need to make myself bankrupt, although when I got the the court the BR clerk told me that my IP should be making me BR! I wanted to do it for my own peace of mind as I didn't want the debts hanging over me any more.

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/

[accgroup]

Hello

Whether your IP presents a bankruptcy petition or not will depend on the specific terms of your IVA, this can vary a lot as some creditors put forward modifications that the supervisor must petition but others do not. You should speak to your IP if you are unsure.

Jimmy, it does sound like your current IVA has failed, but did you try to negotiate a variation to the existing terms with your IP or is it too late? If it is too late, as indicated by some of the posts above, you are back to the position you were in before your IVA was approved, bankruptcy may be your best option, but if you still wish to avoid bankruptcy (and no one else makes you bankrupt) the options of debt management and even another IVA (amongst other things) would be open to you.

Your bankruptcy should not affect your parents.

Hope this helps



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