I think that certain Judges take a real interest in insolvency cases - I do a lot of work in Northern Ireland where the bankruptcy master is a stickler for procedure, insists on seeing all debtors where there is a debtor's petition, and gives them a good grilling before she will grant the order. I know we won't agree on this, but I am on her side in that particular instance, and of course a bankruptcy order may only be granted at the discretion of the Judge/Bankruptcy Master.
I think that the point with regard to the failed IVA, is that we all know that there are people who enter into IVAs who later decide that they feel bankruptcy would be an easier option. Often, this is through encouragement from the bankruptcy assist marketing, which is often a point of discussion on this forum - hence the current thread. Deliberate failing of an IVA is a breach of contract, which was initially based on mutual offer and acceptance. So perhaps some judges - those which take a greater interest in the bankruptcy applications in front of them - amy well be questioning more clients about why they wish to effect such a deliberate breach when there is no evidence of a change in circumstances.
My own view as an insolvency practitioner who does just as much bankruptcy work as IVA work, is that once a client has made their mind up that they do not want to honour their commitments to creditors any more, having been thoroughly appraised of all options at the outset - including the benefits of bankruptcy - is that I would not want to keep them in their IVA kicking and screaming. n What I do really object to is the cold-calling of firms obtaining information about my clients from the insolvency register and then calling them up to tell them that they have been missold an IVA as it was not suitable for their circumstances. Thankfully this only happens occasionally, and none of my 1,500 IVA clients have taken more than an amused notice, but I know other IP firms have suffered from a lot.
Regards, Melanie Giles, Insolvency Practitioner
