IVA TERMINATED

[sandra]

Good Morning all,
Well things just keep getting better!!! Have now received a reply from IP who advises me that IVA was terminated in February 2006 as there were no surplus funds available after sale of properties other than to the secured creditors. It appears that one of the properties went to auction and realised a very low price despite there being at least two people to my knowledge that had made offers way above the price apparently achieved at auction. He was unable to petition for bankruptcy as there were no funds available. He states that it could be possible that a creditor will petition for bankruptcy although he could not see there would be any financial benefit of doing so. The creditor claims amount shot up another £140,000 on the original estimated outcome statement and I dont understand why. He has stated that the debts due to me were unrecoverable. The reason that I had not heard from him was that he had only one of my properties registered as my address. I had written to him giving him care of address but it appears that he did not receive this notification or message left with his office by telephone.Anyway what now?

[MelanieGiles]

Hi Sandra

If you are not satisfied by the conduct of your IP, you should write to him to express your concerns. If you do not receive a satisfactory response, then you could involve the Financial Ombudsman or his own Regulatory Body.

With regard to your current financial circumstances, are you under any pressure from your creditors? If so, then bankruptcy proceedings are probably the best way forward - but it will cost you £500 to lodge a debtor's petition at Court.

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

[sandra]

Hi Melanie,
Not totally convinced that he was hundred percent with me for example he states that he has sent all notifications to one of the addresses of property which he had control of and therefore obviously knew I was not resident there. However, I am really more concerned with my next step. I am being approached by some of the smaller creditors one of whom I have mentioned previously on this site being the local council for council tax. I obviously have no assets now but am employed but just live month to month. I have no permanent abode as have been unable to obtain anywhere to live as as soon as letting agents do credit checks their machines blow up (!)have been on council waiting list for nearly two years and rely on family and friends hospitality.Have not got £500 so should I just wait for one of the creditors to issue bankruptcy proceedings. Head a total shed now. What was a bad, traumatic experience but something to get over and carry on, after all I still alive and lots to be thankful for, has now come back and looks like I have to go through whole nightmare again.

[Skippy]

Sandra, I can't offer you any advice, but I just wanted to say how sorry I am for your situation. I really think it might be worth doing as Melanie suggests and reporting your IP.

Good luck with whatever you decide to do, and let us know how you gte on x

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/

[Andy2]

I take it you were a sole trader and not a limited company so the debts are ultimately coming back to your door. What did your IVA proposal say and the chairman's report ? Surely your IP was competent enough to get you a copy of these although it seems your IP has been happy to keep you in the dark.

[sandra]

Hi Andy,
Yes was sole trader, that in itself long story. From what I can remember as I did no have copy iva proposal was that my two properties were sold and excess monies realised used to pay creditors. I know the voting went in favour of proposal so I assume from then on they were awaiting sale of properties. One of the properties was sold at auction for £35000 less than I know there were offers on it. In fact as far as I was aware it was sold to a young couple who had survey carried out and went round to the property to measure for curtains etc. I did not move into that property as it was being rented out but knew from the tenants that they had been round. Tenants stopped paying rent to me as they received a letter stating that no more monies should be paid to me, I saw letter so know that to be correct. Should have kept copy as I cannot remember who it was to be paid to. I just feel that due to my stupidity, really do blame myself and not IP after all the IP is professional person, or something I should have done and havent, this whole thing back to haunt me.

[sandra]

Sandra, I can't offer you any advice, but I just wanted to say how sorry I am for your situation. I really think it might be worth doing as Melanie suggests and reporting your IP.

Good luck with whatever you decide to do, and let us know how you gte on x

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/

[sandra]

Thanks for kind words Skippy. Just on completely different subject, I seem to make complete mess of replying to and posting items so my apologies to everyone for posting items in wrong section and posting blank items!!

[Andy2]

Don't worry about the posts - we don't judge anyone on here on any aspect of their posting - be it content or presentation! [:D] It seems the IVA is closed without bringing you any closure and the gate is open again for your creditors to keep coming back again and again. The IVA should have proposed a "pence in the pound" return to your creditors to gain acceptance. If this figure is not achieved the IVA can be "completed" but it has in fact failed. If I were you I would get a copy of the Chairman's final report which will no doubt back this up. The under-returns from your properties and from not being paid debts owed to you must be behind this. I think the best resolution for you is to go Bankrupt - it is why it exists - to provide closure and a "line" in the sand. You can wait for a creditor to do this but in reality it is best for you to self petition, but as I say get a copy of the chairman's final report first. Are you in a profession where Bankruptcy would be a problem ?

[MelanieGiles]

Hi Sandra

If you cannot afford the fee for bankruptcy proceedings, then I suggest you write to all of your creditors to explain the position. Your IP ought to be able to give you a list of names, addresses and account numbers. The likelihood is that these debts will have been long written off, so I doubt anyone will pursue you further.

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

[Andy2]

I agree nobody will be looking to pro-actively make you bankrupt and you could let it ride but do you feel that would bring you closure ? As you say you are being pursued again by some of the smaller creditors but are you able to handle them comfortably ?

[sandra]

Well think probably bankruptcy would be best option as this would no doubt finalise things. Dont think it would affect my work but will need to speak to my boss to clarify. Is it simple procedure to do myself or will I need professional assistance. Assume the IP will be able to provide copy of Chairmans final report and as Melanie says list of all creditors. From the posts I have read on this forum I understand that if I go down this road my bank account will be frozen, not that there is much in it but my salary gets paid in each month. Do I need to open new account and if so at what stage should I do this. I just feel so desperate because having thought that I had done everything in my power to partly resolve this situation it all gone wrong. From what I can recall the proposal, which was accepted was 23p in pound, does this seem feasable. Thanks to all of you again.

[scaredkez]

The BR forms are easy and can be done online to be printed off, on the insolvency website it also gives you step by step help and a helpline to phone also.
one thing the OR said to me last week bank accounts do not get frozen, they write to the banks and it is up to the bank whether or not they let you continue using the account, i have been BR 1 week and none have mine have been closed yet although they are all my creditors, so if your current acount is debt free they may let you keep it and change it to a basic account if not don't worry there are banks out there who will take onBR's.
BR fees are currently 485 each at present, i would do them yourself and if stuck ask on the forum, some IP's charge drastic amounts someone has posted this morning that theres have offered to do it for £2k plus BR fees, that is bad when you are already on a downer
let us know how you go
kerri

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

[Skippy]

Hi Sandra, when I was made BR I was asked by the judge if I had taken advice, and if you answer no they can refuse the petition. I had spoken to my IP so I was ok. You have had advice from Melanie so you'll be ok. Your bank account won't necessarily be frozen - who is your account with? I was with Lloyds TSB and the OR was happy for me to carry on using the account, and the manager of my branch was happy as well as they weren't one of my creditors. However I have heard that Lloyds are well known for closing accounts later on as once they know you are BR it is no longer dealt with by your branch, but by their collections department. I opened my new bank account after I had been made BR, as I wanted to make sure that there wouldn't be any problems.

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/

[Andy2]

I would get a copy of the final chairman's report which no doubt will indicate that the 23p in the £ was not able to be realised. It should state what happened to the money that was raised (from the sales). Your position now is that you are no longer protected from your credtiors pursuing you again but they probably realise there is no chance of any return at present. You mention your creditor claims bumped up another £140,000 - do you know how this happened? It is clear there was no chance of achieving 23p in the £ if this was the case. To be honest BEFORE you consider going for BR you need to be totally clear about what has occurred in your IVA because the Official Receiver will want to know this and will get in touch with your former IP as well. The case is no doubt "closed" at your IP's office but you have every right to gain the details of what went on during the IVA and the IP should provide these. Mention you are considering BR because - despite your IP's claims - you are being pursued once again for the debts.