Insolvency Practitioners obligations if IVA fails

[d.v]

May I please ask about the Insolvency Practitioners obligations once an IVA fails? My Husband entered into an IVA and found it to be unaffordable and was struggling to meet repayments. He sent a cheque after a direct debit bounced and they paid the cheque in. Later they had to return the monies to him as the IVA had failed. However nothing else has happened for a very long time and I am extremely stressed about the situation, although not wanting to contact them in case I rock the boat!! Surely his creditors are wanting some kind of payment? I need some answers as to whether they have acted in his best interest and also what their fees are for. My husband is no longer listed in the Insolvency register. I cannot wait for a further 3 years for his creditors to catch up with him, My husband is quite happy as he thinks he has dropped off the end of the planet and I know different. Many thanks.

[MelanieGiles]

Hi dv

This is quite odd. If your husband no longer features on the Insolvency Register, then his IP has obviously closed the case. He should have provided your husband with a copy of his final report to creditors, and you should phone to verify this.

Assuming that the IVA has been concluded, your husband will have to deal with his creditors directly again, and unless he makes contact with them there will always be the worry that something may come out of the woodwork in the future.

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

[neverending]

Hi
How long was your husband paying in to the IVA ?
Was the actual IVA agreed by creditors or was your husband just paying a monthly amount before it was agreed.Can,t understand him not being on the Insolvency register unless his iva was not actually agreed.
regards

[scaredkez]

i get confused with this one, if your iva fails, isn't it your IP'S DUTY to file for BR as they have the money put aside as in the proposal it says they will
kerri

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

[MelanieGiles]

No Kerri

Increasingly creditors are saying that they do not wish the IP to petition for bankruptcy, and if the IP's nominee's fees have not been paid there will be insufficient funds to pay for this in any case.

The cost for an IP applying for a Supervisor's default petition are in the region of £1,500, and with nominee's fees running at between £1,500 to £2,500, this is impractical in the very early stages of an IVA even if the Supervisor was empowered to do so.

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