Disappointed but hardly unexpected

[louisa.s]

Well I rang GT this morning to find out a bit more further to the termination of our IVA (although apparently it will still take 8-10 weeks for the certificate to be issued). I'm quite disappointed in them but hardly unexpected. When questioned about the fact the they retain the funds to petition for our bankruptcy should we be in breach of the terms of our arrangement, the girl on the phone went to her supervisor to check only to come back and quote a different part of the proposal stating that it was at the supervisors discretion as to whether he considers it appropriate to petition for my bankruptcy - talk about a get out cluase if ever there was one as apparently they deem it unnecessary to petition for our bankruptcy even through we haven't paid in just over a year obviously we would have to breach the terms of our agreement fairly spectacularly for them to do anything.

In other words the whole agreement is a load of codswallop - whilst it affords protection from your creditors and allows to repay some of the debt you have amassed that is it. So what is my supervisor going to do with the retained funds that could be used to petition for our bankruptcy - aahh yes pay his fees!

Looks like we shall have to starve in order to find the £1,000 needed to pay for bankruptcy! Although calculating it taking £10 off our £50 per week shop it will take us just under 2 years to save up the costs!!!

[johnnybriggs]

I think you have the wrong of the stick here. It is usually the creditors who decide whether they want the supervisor to retain funds for bky. Most creditors don't bother nowadays.

[kallis3]

I know that we have no such clause. If I need to go bankrupt, I fund it myself.

Any monies already paid in have paid my IP (and I was fully aware of this) and then will be distributed amongst my creditors.

I would suggest that once your creditors start hassling you again, you tell them to do their worst and make you bankrupt. It might just work.

If you are in rented accommodation, there's not a lot they can do to you.

[Max]

Jan your penultimate para worked for a Samaritan client - I told his creditors who were threatening b/r to get on with it. That was in September last year and nothing, todate, has happened. The client is in rented accom and on benefits.

[MRBLUESKY]

if your in rented accommadation your in a strong position,sounds strange but true.

[MelanieGiles]

Louisa - just because you have that clause in your particular proposal, doesn't mean that all IVAs are ambiguous - and at the end of the day you actually agreed and signed the proposal and so presumably agreed its terms.

Most IVA proposals - especially those prepared under the provision of the IVA protocol - are absolutely clear as to what happens in the event of default. I would not want this post to be construed as all IVA agreements are badly worded - even if you feel that yours has been.

I am sorry that your IP is using his discretion in a way you feel is unhelpful, but in reality most creditors these days are very anti-bankruptcy proceedings so that is probably influencing his views.

[kallis3]

Hi Max,

Hope you are well. I think the only thing people can do in this situation is let the creditors get on with it while they save up the fees.

Let's face it, the creditors can't do anything worse than make you bankrupt.

[RHB]

Also, you need to bear in mind that it costs your creditors more than it does you to petition for your bankrupptcy.

[kallis3]

It certainly does.

I'd leave them to get on with it.

[Max]

Fine thanks Jan - Henry saw the specialst Vet yesterday - very pleased - he will be on steroids for another month when he will be seen and tested again - but so far so good.

[kallis3]

Great news. I hope he continues to improve, he is so lovely.

[briggadeen]

ok can I ask why your iva was terminated?

[louisa.s]

Our IVA was terminated because we had a dramatic change in circumstances ie new baby, hubby had to leave his job and I'm now only doing part-time hours. We had proposed a variation to our IVA but because we have no disposable income left each month it was rejected and resolution 2 - Agreement to terminate IVA was passed.

FYI - we rent, are in receipt of ctc/wtc, housing benefit & hubby gets JSA.

guess we are just going to have to left the creditors harrass us and try and get blood out of a bloodless stone. Have come to conclusion that the only way to deal with it - when they start is to remain consistent. Send them our I&E, letter explaining circumstances and the fact that it will take us 2 years to save up for bankruptcy proceedings so they will be prepared for the long haul and a token payment of a £1 each month! Well...I don't think we will win the lottery in the near future and there is certainly no relative about to pop their clogs and leave us with anything.

I certainly think our proposal is badly worded although not on GT's half. I will be writing to complain - not that it will do any good apart from making me feel a smidgen better!

Aahhh well thank god sainsburys do basic curry sauce for 9p! Lets put it this way - if I didn't see the humour in this I would a mess and thats not going to help my wee man.

Thanks for all your comments!

[johnnybriggs]

There is a little help available with raising the deposit for bankruptcy. The court fee of £150 may be waived - you should speak to your local county court about that. Some utility companies have charitable trusts which will help with the rest and there are certain debt charities with funds available.

[kallis3]

Asda's curry sauce is cheaper Louisa![:D]

Seriously, I would trawl the internet to find out where you can get help with your costs. It might be worth it.

You should be able to get the court fees waived anyway as you are on benefits.