Hi, I haven't been able to make payments to my IVA for nearly a year now and because my IP sold on my IVA in October 2014 it has up to this point not failed. I'm in a position to resume payments (offered more hours at work) but not at the same level as before. The new IP has offered to go to my creditors with a proposal to resume payments at the lower level but they have warned me that it may not be accepted in which case my IVA will automatically fail and there's a strong chance my creditor will force me into bankruptcy.
Be very grateful for some advice
Forcing you into BR will cost them money and, unless you have a great deal of equity in your property, ( assuming you own), will not bring them the same return as an IVA as the costs of running BR are greater.
Best of luck with the meeting.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Hi there, I think the word strong may be a bit strong! It will cost at least £2.5k to make you Bankrupt and creditors have to be confident you have assets worth bankrupting you for to bother with it. All I can say is keep your fingers crossed and await the outcome.
My payments were £120 and the new proposal is £85 (I owe £27k), I have no assets what's so ever. I just hope they will explain to my creditors the full circumstances of what happened to me over the last year.
Hi Huff. If it's not too late you could ask them to submit your covering letter as part of their variation report. At the end of the day creditors either accept £85 or nothing as if they reject and make you bankrupt, even if you have to pay your disposable income in for 3 years if won't put a dent in the costs so there will never be a dividend to creditors. To me it's a no-brainer. Good luck.
Thanks so much Lisa - I really appreciate your advice.
My IP had told me to get some 'advice' before they go ahead and request the variation. They suggested the debt charities or a solicitor but no body will advise me because 'I'm already in an IVA'.
I will email them tonight and ask if I can include a covering letter and say I would like to go ahead with the variation request and then just keep everything crossed.
It usually takes a month to 6 weeks to draft and then 28 days Notice has to be given to the creditors -- usually you are looking at around 3 months. Mine took 2.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
