www.iva.co.uk

Evening all,

I haven't posted on here for quite some time now but found this forum invaluable when we first entered into our IVA in 2006.

Since we entered our IVA our circumstances have changed somewhat substantially. We had to move in July 2008 and shortly after that I found out I was pregnant. All went well however we were unable to make our repayments from December 2008 as the car died and we needed to get stuff for the baby. We contacted GT and explained the situation and suggested that we took a 6 month payment break until we had established what our finances would be after our baby was born.

5 months after our son was born my husband felt he had no option but to resign from his job as he was coming under increasing pressure and he felt that he was being pushed out. Unable to find another job he had to get JSA, that combined with my SMP didn't give us much money a month so we were unable to restart our IVA payments.

GT got in contact with us in October and we sought a variation of the terms of our IVA. The proposal was drawn up and submitted and our meeting was scheduled for 8 January.

Unfortunately the outcome of the meeting was that the modification proposal was rejected and our creditors (well the only one to vote) voted that a Certificate of Termination to be issued due to our breach of the contract.

GT have said it can take up to 10 weeks for our file to work it way through their closures department before a Termination Notice issued.

My question is, which they don't explain in their letter, is what happens when we receive the Termination Notice, what if any action do we need to take or is it a case of waiting for GT to petition for our bankruptcy?

Sorry for the length of this post but hope you can give me some advice

Lou

Hi Louisa,

Sorry to hear that your IVA hasn't worked out for you.

Now your IVA has failed, your creditors will start to pursue you again and you will be back to square one.

Unless your proposal stated that GT will keep back sufficient funds for BR, you will have to petition yourselves. As soon as you get that letter you can make an appointment at the court.

Hmmmm...better check my proposal quick as there is no way we will have the money for bankruptcy as we honestly just have enough each month for all the bills and food.

If you're on benefits then the court costs can be reduced.

I also believe that some utility companies can help you with the fees.

Hopefully Skippy, Julie or one of the experts can clarify that.

Hi Louisa

Sorry to read your problems.

GT may not necessarily petition for your bankruptcies and the outcome of the termination may mean that you will have to deal with calls and correspondence from IVA creditors.

I'm sure that if you contact GT they will be happy to give you some guidance on what to do.

Have either of you been Civil Servants contributing to their Benevolent Fund? I would suggest contacting GT and advice organisations to discuss options.

Very best of luck.

I am going to contact GT in the morning but wanted to get things a bit straighter in my head.

Having checked our initial proposal it does state that GT should retain sufficient funds to petition for our bankruptcy should the agreement fail by means of default but will try and get some clarification of their processes tomorrow.

Angela - neither of us have been civil servants. As for options I'm not sure we actually have any really as we certainly are not in a position to propose a DMP. In an ideal world we would have loved to conclude our IVA as at least then we would have that sense of achievement and knowledge that we repaid our debts the best we could.

But life chucks us curve balls and we just have to do the best we can at the time to catch them.

Thanks for the words of advice!

The fact that the creditors have voted for your Supervisor to file Certificates of Termination indicates that they do not wish to to enter bankruptcy. They prefer to be able to deal with you directly - perhaps under a DMP or even separate payment arrangements.

If you feel that you cannot offer any form of payment to creditors, then perhaps you ought to consider whether bankruptcy would be the best option now.

Your efforts are to be admired - what more could you have done!

IVAs are a fantastic tool to deal with debts and I'm very sorry you've been dealt what looks like a series of complicated blows frustrating your goals.

It's wonderful that you used your best endeavours to deal with your situation. It may be a great disappointment to you both but bankruptcy could well be the solution to help you deal with this matter.

You need to concentrate on your family now - hopefully with the financial concerns removed - and there are many organisations out there to help direct you with both finances and emotional support.

Best wishes X