approx 51/2 years ago went for an IVA with monies to be paid from the sale of two properties and no monthly payments to be made subsequently. The properties did not realise enough money to pay all creditors and I am now finding that I am getting letters demanding money for debts owed back then. What is my best option. Help!!!!
Did the IVA successfully conclude, and were you issued a Certificate of Due completion? Assuming this to be the case, creditors are out of order chasing you for the unpaid balances now, as you would have been fully discharged from the debts once the IVA was finalised.
You say that the sale 'did not realise enough money to pay all creditors'. Do you mean that only some were actually paid or that all creditors were not paid in full?
As enough monies were not raised to pay all creditors they were told by IVA practitioner to make me bankrupt if they wanted to pursue further. I didnt receive any certificate.
Michael Peoples wrote:
You say that the sale 'did not realise enough money to pay all creditors'. Do you mean that only some were actually paid or that all creditors were not paid in full?
Only some creditors were paid and IVA practitioner said that those that didnt get paid in full or anything could go for bankruptcy. This has never happened so I have just assumed all of this time that they would not bother.
That sounds as though some creditors were paid preferentially. Are you certain it was an IVA, or could it have been an informal offer to creditors based on full repayment?
Would you mind telling us which company you were with?
Andy Davie wrote:
Hi
Sounds as if your IVA did not conclude and you are back to square one. Did you pay the sale proceeds over to your IVA company ?
Regards
I had nothing to do with sale of properties or any monies coming in. All signed over to IVA company.
That sounds as though some creditors were paid preferentially. Are you certain it was an IVA, or could it have been an informal offer to creditors based on full repayment?
Would you mind telling us which company you were with?
Yes was IVA with the proviso that I handed over properties and any monies made from sale of those would be shared out between creditors. It appears that only enough raised to pay back mortgage and loans on properties. Company name was CRN, Lincoln
Cannot say I have ever heard of them but it sounds strange. You should go back to them and find out what actually happened and get a copy of any Chairman's Report and IVA. All unsecured creditors have to be treated equally and if this did not happen I cannot see how an IVA was ever in place.
Michael Peoples wrote:
Cannot say I have ever heard of them but it sounds strange. You should go back to them and find out what actually happened and get a copy of any Chairman's Report and IVA. All unsecured creditors have to be treated equally and if this did not happen I cannot see how an IVA was ever in place.
From what I understand of the paperwork the 75% vote was achieved but when my assets were sold which were two houses, only those who had secured debts, i.e. mortgage companies and secured loans on properties were paid. It states in paperwork I eventually received that there were no other monies to pay any of the other creditors or him and as he had no money of mine to get me to declare bankruptcy it was suggested that the creditors who had not received any money do this but also he suggested that as I had no assets left then that option may also be pointless. I wasnt told that in 5 years time they would all start chasing me again. All I have now is my job, no house, no car and no other assets. I dont know whether it would be a good idea for me to declare myself bankrupt.
It sounds like the IVA was terminated for effectively non compliance but even so it seems starnge that they are only coming after you now. The debts are apparently still owing and the whole IVA seems to be have been a complete waste of time if the properties were sold and no one other than secured creditors repaid.
Bankruptcy may be the best option but it would seem a shame after all this time and the seemingly pointless loss of two properties.
As Michael has already said, this seems like a very strange state of affairs. Normally if you are selling property in order to generate a lump sum for a full and final IVA, you remain very much in control of the sale. Also, the IP should not take the case on unless there is clearly enough equity in the properties to make the IVA work once the sale happens.
Unfortunately, it seems as though, the sales went through and the IVA failed because there were no funds.s such, the debt in question would remain. The creditors are probably chasing you now because if they do not, there is the possibility that after 6 years the debt becomes statute barred and they can no longer take legal action against you.
Unfortunately You really should have been advised properly at that time and at the very least you should have considered declaring yourself bankrupt. Are you a homeowner again or are you renting? If renting, I would suggest you consider the bankruptcy option now.
James Falla wrote:
As Michael has already said, this seems like a very strange state of affairs. Normally if you are selling property in order to generate a lump sum for a full and final IVA, you remain very much in control of the sale. Also, the IP should not take the case on unless there is clearly enough equity in the properties to make the IVA work once the sale happens.
Unfortunately, it seems as though, the sales went through and the IVA failed because there were no funds.s such, the debt in question would remain. The creditors are probably chasing you now because if they do not, there is the possibility that after 6 years the debt becomes statute barred and they can no longer take legal action against you.
Unfortunately You really should have been advised properly at that time and at the very least you should have considered declaring yourself bankrupt. Are you a homeowner again or are you renting? If renting, I would suggest you consider the bankruptcy option now.
think that basically what happened as the idea was as I believe that it would be full and final settlement payment from monies from property sales. I think I was mis informed all the way as I thought at the time my best option would have been to declare bankruptcy. I neither rent or own but am lucky that I have good friends who I stay with. I do however pay for that and buy food etc. If I went bankrupt would I have to make payments from my wages? Also as I was self employed at the time this happened what about inland rev and VAT. I have no idea if they were chasing as all paperwork handed to IP and he dealt with it all, or so I thought!! How much will it cost me to declare bankrupt? Did think that my life was getting back on track but appears not! Hey ho. Keep smiling.
Hi. I feel for you being chased after all this time. It's too tempting just to close your eyes and hope for the best sometimes! I dont feel you were necessarily badly advised because I dont know the facts of your case. The sale prices or level of secured debt must have surprised him too...he didn't get paid after all. Bankruptcy, as James mentioned, is one option but you could also propose another iva based on monthly repayments or enter a dmp. Do you know how much you owe now?
