I have had a joint IVA with my husband that’s been running now for over 2 years. It is both personal and business debt related. We have recently had to undergo a court case to try to get money back that our business was owed but it is a complex case and due to the nature of the business there is a small chance the case won’t go in our favour. If we were to lose the case and have to pay other parties costs etc, how would this work with the IVA? Which would take precedent? Could we be forced to sell the business for the court costs despite the fact that is our only way of keeping up IVA payments and would force a default on that agreement? Any help with this complex case extremely appreciated.
Is your IP aware of the legal action? The costs relating to this case will be deemed to be a post-IVA debt, and will not be included in the IVA unless specific provision was made for this as a cost at the time your IVA was proposed. Was the potential gain from a successful claim also taken into account, for the future benefit of your creditors - and how was your business valued for the purposes of your IVA?
You are touching on fairly complex issues, and really ought to discuss this with your own IP directly who will have detailed knowledge of your case. In the meantime good luck with the case and I really do hope that you win!
