Yesterday our IVA was failed, my husband lost his job in the beginning of the year and thankfully found another after only 5 weeks, however we struggled with the repayments and hence the decission yesterday......
However...what exactly does
"The Supervisor fails the arrangement, issues a Certificate of Non-Compliance and takes no further action" exactly mean....
Does it mean that the creditors are once again free to come knocking on our door for funds we clearly do not have or what?
The other decission was
"The Supervisor fails the arrangement, issues a Certificate of Non-Compliance and petitions for the debtor's bankruptcy".
Each creditor went for the first option, however the Supervisor said that our only option now is to go bankrupt, however we can not afford the £500 odd it costs us each as if this was the case we would have carried on with the IVA!!
Please could someone shed some light on this question...
Thanks for you continued support[:X]
Hi Becky.
Sorry to hear about the failure of your IVA but effectively you are back to square one. You could propose a new IVA, enter a DMP or petition for bankruptcy. Creditors may accept a new IVA provided it was viable and with sufficient explanation as to the failure of the first but it would almost certainly have to start again and you would have five years to pay.
It would be worth having a chat to an IP firm to decide what is the best course of action for you and your husband before the creditors begin to hound you again for payments.
Last edited by Michael Peoples on Thu Jan 07, 2010 2:18 pm, edited 1 time in total.
It does mean you will be persued by the creditors though.
I would probably try negotiating with your creditors about lower payments, or use a DMP company to do it for you to give you some breathing space.
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 your words of advise, if we enter into a DMP are the repayments going to be more realistic/affordable than the IVA?
WOuls this be an indefinate payments, obviously depending on monthly payments and amount owed?
Also we had a F&F agreed, as we sold our house, however due to the slump in the house market we did not have enough equity to pay the F&F, doe this mean the orginal debt amount is going to be asked from us now?
You should be able to make lower payments in a DMP, but it is likely to go on for a much longer period of time. I was in one before doing my IVA and it would have taken 20 years to pay off.
I assume you are in rented accommodation now and could look at bankruptcy. If you can stand the hassle of the calls and letters from now until you petition, I'd start saving up the fees as it sounds as though this could be an option for you.
Even though you will have paid something off your debts, as soon as the IVA fail the companies can start adding charges and interest again, so the debt may be just as high.
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
That is good advice from Jan. If you have already sold your home and your creditors got the equity there really is very little else for you or your husband to offer. Unless there are compelling and valid reasons for you not to petition it would appear bankruptcies are the best options for you both.
Your creditors will hound you, there is no getting away from that. You could change your phone number so they can't contact you that way.
If you are in rented accommodation, the worst the creditors can do is bankrupt you themselves, unlikely though as it will cost them a fair amount of money.
I'd just try and save up the money yourselves if this is the route you are thinking of.
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
If you have no assets to pursue, then just ignore the ongoing harassment and save as hard as you can for the bankruptcy costs. Do remember that one of you can go bankrupt before the other - you don't have to both apply at the same time.
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
