Hi all I have had my IVA running for about 6 months, been very difficult with this economic climate getting work to keep up payments.
I have a business Ltd which has an overdraft of £15k which is at its max and companies who owe me money are going bust. If I wind up my company the I gave a guarantee on so they will come after me as the company does not have any money.
Will the £15k join the IVA even though its been running 6 months ??
As I understand as long as I make my payments to my IVA regular and dont miss one the Creditors in the IVA wont get upset but they may if another debt joins it?
This should have been included in your IVA as a contingent liability. Whether it can be included in the IVA, will depend upon the attitude of the credtior concerned and whether this would be deemed to be a material irregularity which could cause the IVA to fail.
Was your IP aware of the limited company, and importantly did they ask about personal guarantees given for company debts?
I think your IVA creditors and the guarrantor creditor (if you wind up your limited company) would accept the situation provided there was not a massive change in the dividend promiosed or estimated.Talk to your IP for advice.
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.
Melanie is totally correct and the overdraft should have been listed as a contingent liability and the bank notified. This could have allowed them to rethink the overdraft or seek additional security. The IVA proposal does have a section concerning guarantees so it should have been highlighted.
However, as David says, the creditor will likely join the IVA so it should not be a major issue. You may have to make afew additional payments at the end to achieve any minimum dividend stipulated in the proposal.
