Looking at Sup's abstract of Receipts and Payments up to 4th anniversary of IVA last year, I note £1200 of the balance is "Bankruptcy Provision". I assume this is an amount set aside to cover the cost of bankruptcy proceedings were that route taken.
At the end of IVA, I take it this amount is also divvied out to creditors if bankruptcy is not followed?
You are correct in your assumption that the bankruptcy provision money is released at the end of the arrangement and is paid to creditors by way of dividend. Hopefully it will not have to be used in the meantime.
Presumably your proposal or modification stated that a bankruptcy provision was to be set up? Otherwise Melanie's advice is bang on.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
