IVA when already bankrupt ?

[Adam Davies]

Hi
Well I've learnt something today !!
Thanks Skippy
So how does a BRO or BRU affect someone ?
Regards

[MelanieGiles]

It gives the same restrictions as if the person was still bankrupt, outside of them being bankrupt! It is indeed a strange world, and I also learned this fact from Skippy about 6 months ago!

[Adam Davies]

Hi
Skippy your in the wrong job !!
Don't let the bankruptcy site head hunt you !!

[MelanieGiles]

I think they already have Andy!!

[Skippy]

Oooh, I'm blushing! I do look on the BR forum most days, but you definitely won't be getting rid of me from here!

[chris.g]

Go skippy.......
xx

[Lawrence]

I have not yet been discharged from the bankruptcy yet despite it being over 18 months.

Can anyone enlighten me as to what BRO or BRU means???!!!

If anyone out there knows of anyone who may be able to help or give me advice on my situation before they issue a possession order on my home, I would be extremely grateful.

PS.. Someone in the wirral area if poss

Thanks

[MelanieGiles]

Is there any reason why you have not been discharged Lawrence - as this is usually automatic after 12 months unless the OR applies to have your discharged suspended which is actually quite rare.

BRO and BRU stand for Bankruptcy Restrictions Order and Undertaking respetively - they put restrictions on bankrupts and former bankrupts, if the OR becomes aware of bankruptcy offences or reckless borrowing both prior to and after a bankruptcy order has been made.

I can recommend a good solicitor based in the Manchester/Chester area - Mark Davies of DWF solicitors. Let me know if you want more details.

[Lawrence]

Thanks Melanie,

Have no idea why I wasn't discharged from the bankruptcy after twelve months, the receivers have never written to me or explained why.

As far as I am aware I haven't had a BRO or BRU put onto the bankruptcy.

I would be grateful for Mark Davies details or if you hear of anyone closer to me in the Wallasey area.

thanks for your swift reply

[Lawrence]

Hi Melanie,

Sorry meant to ask if you have any idea why the debt has now increased to such a high amount, the original debt was £25,000 and now they are saying I owe £56,000. How can that be?

Thanks

[ianmillington]

Hi Lawrence

The first thing to do is check if you have been discharged. Discharge does not mean the closure of the bankruptcy. Administration of the bankruptcy can continue for some time (even years) after discharge. If you have been discharged, you cannot do an IVA in respect of the debts discharged by the bankruptcy.

Check at www.insolvency.gov.uk and search for yourself on the personal insolvency register. If you have been discharged you won't be shown. When you know that, come back and let us know so we can give you more targeted advice.

ian

[MelanieGiles]

Mark Davies's website is detailed below:-

http://www.dwf.co.uk/professionals/xprP ... LastName=D

He is a really nice guy, and is sure to be able to help you. Good luck!

And Ian - one for you. The High Court in Northern Ireland believe that you can do an IVA after bankruptcy discharge. I lost a case on this at Court last Friday, but am considering my position carefully! It just does not make sense that they are allowing a debtor in a PRU case which is 14 years old to now do an IVA where he is offering 50p in the £, when he could pay in full under the existing proceedings. It's a long story but we cannot get the Judge to grant a possession order. I wonder if this could be now relied upon as good caselaw over here?!!!

[Lawrence]

Hi Ian

Have just done a search on the Personal Insolvency Register and my name is not being found so I presume I mustn't be on it anymore.

I would appreciate any advice you can give me as to a way forward with this 'huge problem' of mine.

Thanks

[MelanieGiles]

You really do need to take professional advice - and you can find Mark Davies' details on his firm's websit - DWF solicitors. At the end of the day it is not suprising that a debt of £25k is now £56k to discharge when you take account of all the OR and Trustee's costs, coupled with statutory interest.

[ianmillington]

I think your case is a perfect illustration of the consequences of the usual term "the Court may...." Melanie! I can't see how it's right, but it's difficult to argue with a High Court Judge. Were you given leave to appeal or are you going to find it an handy NI precedent?

Lawrence - I can only agree with Melanie that you need to take advice from an Insolvency Lawyer as to how best to tackle this. I fear you are currently between a rock and a hard place, as the time for defending your position by way of attempting an IVA would appear to have passed. It's now a question of damage limitation I think, perhaps negotiation on the Trustees fees but, as Melanie says, it is very easy for the bill to go from £25k to £56k due to all the fees, interest etc that get charged. Bankruptcy is typically the most expensive and destructive of the personal debt solutions available, and is the option I would really only recommend to someone with little nothing to lose.

I have no problem recommending you speak with Mark Davies. Whether you talk to him or someone else it needs to be at a face to face meeting with a lawyer who knows what he or she is talking about i.e they should specialise in insolvency and preferably bankruptcy law. He or she will also need to know all the facts relevant to you case so you will need to have all the information to hand.

Ian