I am approaching the 3 year aniversary of my IVA and it is very likely that I will be made redundant within the next two months My prospects of finding a new job with similar pay are slim in the present financial climate. Is bancrupcy my only option or will IVA allow a period of time to find new employment.
Will you be receiving any redundancy pay? If so, you can use this in lieu of wages whilst you look for another job. The residue would then have to be paid across to the IVA.
If not, ask your IP for a payment break whilst you look for employment. They should be amenable to this.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Your IP ought to allow you a short period to find alternative employment, following which you may need to get this formally extended with the agreement of your creditors.
Do you have any assets which would actually be affected by bankruptcy proceedings?
Melanie - presumably any assets would be part of his existing IVA?
Michael90 - You should in any event discuss matters with your Supervisor and see whether you can take a payment break or apply for a Variation. 3 years down the line is a good position and maybe depending on what your creditors think and your ability to get another job might accept what you've paid in as enough. As I have said discuss with your Supervisor.
Last edited by David Mond on Wed Jan 07, 2009 10:39 pm, edited 1 time in total.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
My IVA was for £27,000 including administration costs. To date I have paid approx. £11,0000.
I will not receive any redundancy payment as I have been in current employment for less than two years.
I have a house with a mortgage and secured loan on it, so very little or no equity there. I am married with two children, my wife is joint owner of the house, however she does not have her own IVA.
I am hoping to get payment holiday from mortgage and secured loan but unsure of what is reasonable to ask for.
You can always ask for 2 or 3 months to start. That should give you a fair amount of time to look for another job. I'd do the same with your IVA company as well.
Your creditors will not want to see the IVA fail now as you are over half way through, and I am sure they will help you.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Thanks for the advice, I would be grateful for your comment on a couple of further points.
I beleive my property is excluded from the IVA however the original report is unclear. In the text of the report the house is listed under excluded assets. In the table of assets available to creditors there are two columns of figures one for bancrupcy and the other for the IVA, beside equity in property there is an amount for bancrupcy and £0 for IVA. I have therefored assumed that it is excluded. How does the fact that it is excluded affect what might happen in the event of bancrupcy?
The dividend available to creditors is stated as 36p in the pound. Is this the minimum amount that will be acceptable at the end of the IVA and how does it relate to what I have currently paid standing at about 40p in the pound?
In each annual report to creditors only one of my creditors have submitted a claim, there is a statement in the report saying if by such and such a date creditors who do not provide proof of debt etc may be excluded from any dividend distribution. I do not receive any further info on who has and has not claimed by that date. Is this normal and is it likely that any creditors have been excluded or do they have the right claim up till the end of the IVA?
Any further advice you can provide in advance of discussing with my Supervisor will be much appreciated.
Your property is therefore excluded, so long as creditor modifications did not dictate otherwise. Check your Chairman's Report to be sure.
It is not normal to be three years into an IVA and not have creditor claims agreed. This should be done within the first couple of months following approval, and your IP ought to be serving them with a final notice, failing which the creditors who have not submitted claims will be specifically excluded.
