It does happen - don't think it's that often though.
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
It is not unusual where a client has been made bankrupt for an IVA to be offered with 100p in the £. This stops the bankruptcy from proceeding and the client losing their home. The costs and implications are less than bankruptcy and once the IVA is approved the bankruptcy is annulled.
If a debtor has received a bankruptcy petition a DMP is no longer an option so an IVA can also be drafted which allows the debtor time to repay either by sale of assets or voluntary contributions. This again can also be to the benefit of all concerned.
Would that normally come from Full and Final offers though Jan? Assuming you could pay 100p back over 5 years you wouldnt really consider an IVA?...fees and all that.
On the contrary we have recently been doing a few - but overall not too often - but it certainly allows for those debtor's who want to fully repay any of their obligations a method by which they can solely based on affordability, achievability and in the debtor's best interest.
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.
If you work loads of overtime or get bonuses, you can pay it back that way.
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
Creditors generally do not like 100p in the £ IVAs, unless as Michael says they are post-bankruptcy cases where the return to them could be effected quicker than if the bankruptcy were to run its course.
