Hi there. Im 27 months into my IVA and things have just gradually got worse and worse for me over the last year or so and im just not sure where i go from here, my situation is very complex I feel. Mistakes I have made are starting to catch up with me and I just want to try and get on an even keel and sort my situation out. I could probably write a life story trying to explain but i'll try to keep it brief and to the facts. I took out an IVA in 2007 and have made 27 payments of £563 per month so far, 61p in the £ div was agreed. When the IVA was first approved creditors said they wanted me to remortgage in the 4th year but that was never a possibility as I had split with my ex partner, so the house was sold last June and the I didnt declare the funds and over the past year I have spent the money I obtained. In addition to this I have also got into a very unhealthy situation at work where I have been using a corporate card towards my monthly expenditure and over time this has grown and grown each month, I have ended up getting back to a position of robbing Peter to pay Paul. Anyway my work have audited the cards recently and i have had to pay off the card in full and return it to my employer, fortunatley no further action has been taken. This has meant I have had to use all money I had for rent, Bills and IVA etc to pay off my card, I had also just asked for a 1 month payment break to cover a £600 MOT bill. In additon to this I have today received a letter telling me my IVA has been taken over by Grant Thornton. I know I have behaved inapproppriatley and not stuck to the agreement of running my IVA and I wont make excuses but I have had a very difficult 12 months for one reason and another. I genuinley want to sort the situation out but dont think I will be able to start making full payments again until end of August. I wonder if I will be better off bankrupt or whether a new IVA would be allowed from August, I wonder if my creditors would rather try and get the money back off me still or want to end the agreement and make me bankrupt. I ultimatley now just want to sort my situation out. Any advice please???
I think it is unlikely that you would be able to do a new IVA - you would have to let this one fail and then explain why it had happened and I couldn't see an IP taking it on in all honesty. I'm surprised that you were able to sell the house as normally there is some sort of warning on your file so that you can't sell it without the IP knowing, and they wouldn't be happy that you had not declad the funds.
If you have no assets, then bankruptcy would seem to be the way to go. Let your IVA fail so that you can save up the court fees. You can make a clean start then and put everything behind you.
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
lloyd how much money are we talking about you obtained,you need to be honest now to get accurate advice from one of the professionals.going through a separation is very stressful so this will be taken into consideration.you can take holiday payment breaks while in a iva ,but it is important to keep in touch with ip,s through helplines ,case officers etc, they are there to help you.
Last edited by MRBLUESKY on Tue Jun 30, 2009 11:05 pm, edited 1 time in total.
Thanks for the advice. If I were to go the Bankruptcy route do you know how this works with your employer, do they have to be told? I just work in the Telecoms sector?
First of all relax. You are not going to jail. You are not going to be put in stocks and have bag eggs thrown at you.
Lift the phone and speak to Grant Thornton. Your IVA can be saved and it just requires a variation. All the things that you think you have done are small potatoes in comparison to what others have done.
If you do not want to contact them you can ring any of us here on a no names basis and we can help. Our details are on the experts page.
Only your payroll department would be informed as you would get a nil tax code for the remainder of the tax year. They may or may not inform your HR department. All this means is that you receive all your tax in your pay, and you pay this across to the Official Receiver.
Is it possible for you to ring up your HR dept anonymously to see what they say? Or check your contract of employment, or there may be something on your intranet if you have one.
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
Not wanting to pour cold water over anything here, but wouldn't the OR consider the selling of the house as an attempt to get rid of an asset while in debt and therefore try to claim it back from whomever it was sold to?
I would seriously consider talking to a solicitor who specializes in BR before making any decision about it. I nearly didn't bother doing that before petitioning for BR, I'm glad I did as I found out my x-wife could have ended up tied to my debts because of a clause in our seperation / divorce agreement that would have released funds to me in the event she sold, remarried or inherited and due to a mistkae by us both there was no time limit on those clauses.
Be very, very careful about going BR without getting good legal advice.
Last edited by Fugazi on Wed Jul 01, 2009 5:00 pm, edited 1 time in total.
If the property was sold at an undervalue there is every possibilty that the OR would try and overturn the sale. However, if the property was sold in the open market to a non related person there is no way that the OR could penalise the purchaser who bought in good faith.
What does surprise me is that the IP did not register a restriction on the property or that the solicitor did not notice it at the time of the conveyance. I can only assume that the ex partner refused to sign the RX1 form and the restriction was never placed.
I agree that it is worth taking legal advice before petitioning for bankruptcy and I do believe that Lloyd would receive a Bankruptcy Restriction Order [BRO]. However, I also feel that if there is a good story and the amount of money involved was not massive, creditors may forgive the breaches and possibly extend the IVA for twelve months.
I think that as long as you have sold the house for it's proper value then there shouldn't be a problem. The OR would want to know what had happened to any profit though.
One of the experts on here is a bankruptcy assist company who are highly recommended. You can find the details under the expert link on the left hand side of the page under Reviva UK. You will be able to get free advice from them and Paul Johns, the expert is a lovely man.
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
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
Thanks for the updates. I never signed the RX11 form as my ex partner refused to do this and before I entered the IVA I had explained that I wouldnt be able to do it. The profit was approx 14k, some of that money was used towards refurbishing the house with fixtures and fittings as I had none left after I/we sold as most things belonged to my ex. Some of the rest of the money has gone towards the increase in paying rent for just me as opposed to half the mortgage. I wonder if the fact that I have made 27 payments of £563 already back to my creditors via the IVA might mean they would be prepared to allow me to start paying the normal monthly amount again from August and continue paying back until they get the 61p in the £ originally proposed or are they likely to want to punish me via BR??
The best thing you can do is contact your IP and put them fully in the picture and explain your plan to them. They hopefully will be sympathetic and let you carry on.
They won't force you to go bankrupt unless there is a clause in your IVA which keeps back funds for this in the event the IVA claims.
You will just end up back at square one with the creditors chasing you.
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
I think you have a reasonable case to propose a variation. Creditors will have nothing to gain from bankruptcy and the amounts involved are not huge. Your IP will want to see the completion statement from the solicitor and a complete breakdown of where the money went before going to creditors.
You should certainly contact GT as quickly as possible and explain everything to them. The quicker you do that the quicker you can ask for a variation and hopefully creditors will forgive the breaches and allow the IVA to run it's course. Good luck.
