My son has just signed to set up an Iva, however they are only at the stage of contacting his creditors, after speaking to the citizens advice they have told him it's not his best option as he does own 2 properties, can he still back out? And if so how can he do this? REGARDS
If they have not had the creditors meeting andf the IVA hasn't been accepted he simply has to tell the firm to stop. Most firms do not charge in these circumstances, but it will depend on whatever terms your son has agreed to.
Having 2 properties is not, in itself, a reason not to have an IVA and, indeed, it depends upon what other options CAB are suggesting as to whether they would be safe in another solution. A DRO is out of the question as he doesn't qualify and a DMP depends upon the agreement of the creditors and is not binding --- they can simply make him bankrupt to protect their own interests, in which case the properties might be forfeit anyway.
CAB can advise on the solutions, but you need to speak to a licensed and qualified insolvency practitioner to examine the whole picture and advise on the best way forward.
Might I ask which firm he is working with at the moment ?
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
He could back out and speak to a different company for advice
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
