IVA Breach & frightened

[scottm]

We have had an IVA since February 2006. Earlier this year we sold our house. Our solicitor had been made aware of our IVA and on completion the proceeds of £8900 were sent to us. Some of the funds were used to back back friends & family money we had previously borrowed prior to the IVA.
It was not until we received a letter from our solicitor that the proceeds should have been sent to our supervisor and also the land could not be registered in the new owners names. Our understanding was that we had to inform our supervisor if we sold the house, and were unaware prior to this that any windfall had to be given to them, although are now aware that this was in the contract.
We have had several conversations with our IP who advised at the time we had to pay the windfall in one lump sum. We are not in a position to do this and requested verbally and in writing that consideration be given to increase our payments to pay.
We received a breach of notice earlier this month and have responded back again to advise that we are not in a position to remedy the breach in one lump sum.
We are really frightened of the impact that this will have and what will happen. ie bankruptcy. We just cannot get the money. I have been told they could barnkrupt our friends and family for the money we gave them. Could we lose our jobs, we are both in a middle management position, could we be sent to prison, could we be evicted from our rented home, I have read articles about BRO /BRU's???? its scrambling my brain. I would be grateful for any advise that anyone can give.

Thank you
Scott

[bagpuss]

Hiya Scott...i cant offer any proffesional advise but i think i am right in saying your family and friends are safe...there is nothing anyone can do to them...who ever told you that is nuts. I think i am also right in saying no-one will be sent to jail.

hope this helps a little untill you get a professional online to help you. x

Angie xx


My IVA Story......http://bagpuss.blogs.iva.co.uk/2007/09/ ... iva-story/

[scaredkez]

scot you are in breach because you gave preferential treatment to friends and family and also you should have informed ip of your sale, it all depends also what was in your proposal for the iva, they can't BR your friends and family as they don't owe your creditors, but they can BR you if the pot includes money to do so if you can't put back in what you have given away so to speak, speak to your ip and see if you can remedy this, wish you the best kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[MelanieGiles]

Sorry - I don't agree with Bagpuss on this occassion, Scott has used an asset to pay members of his family on a preferential basis and these are potential grounds for failing the IVA and having the supervisor apply for your bankruptcy. It is unlikely that this would result in bankruptcies for the payees, however they would be asked to pay the money back.

It is clear that Scott has not effected this transaction deliberately, but has not fully understood his responsibilities under the IVA. Was the property excluded from the arrangement?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[bagpuss]

I am more than happy to be disagreed with Melanie...your the expert and thank goodness we have you. xxx

I guess i presumed the family/friends would be ok as they havent signed into any conditions and could just say they didnt know about Scotts situation.

Am i right in saying that even if he had informed these family/friends debts at the time of starting his IVA they wouldnt have been included anyway....?

Could this be resolved if Scott asked for the money back and sent it to his IP...?

Angie xx


My IVA Story......http://bagpuss.blogs.iva.co.uk/2007/09/ ... iva-story/

[MelanieGiles]

You are a gracious lady Angie!!!

Scott should have included his family's debts within his IVA agreement in the first place - assuming that they existed at that time. If the debts have been run up after the IVA was accepted, then they should not form part of the IVA, but should definately not have been paid out of the house sale.

If he were to ask them for the money back and send this to the IP, I think this would be the start of making amends, but without sight of the original IVA documents it is a little difficult to advise fully.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp