www.iva.co.uk

Hi all,

It seems ages since I last posted!

I was just reading the Terms & Conditions of my fixed-sum loan agreement for my car. It says this:

"2. Bankruptcy

2.1 You will not permit a petition for a bankruptcy order to be presented against you, or permit an application for an interim order to be made against you, or call a meeting of creditors, or reach any agreement with them."

Surely this isn't enforceable or is it?? Is it legal?

It seems to rule out their involvement in an IVA. Can they actually do anything if I do declare myself bankrupt???

It just seems such a staggering statement to put in the terms & conditions!

You would have difficulte in trying to stop a bankruptcy petition being presented against you, however an Interim Order is lodged on you own application.

The agreement seeks to stop you entering into any form of arrangement with your creditors, or petitioning for your own bankruptcy. To do so would leave you in breach of contract amd a possible damages claim, but I cannot see how this would stop you exercising a basic human right!

MelanieGiles wrote:

You would have difficulte in trying to stop a bankruptcy petition being presented against you, however an Interim Order is lodged on you own application.

The agreement seeks to stop you entering into any form of arrangement with your creditors, or petitioning for your own bankruptcy. To do so would leave you in breach of contract amd a possible damages claim, but I cannot see how this would stop you exercising a basic human right!

Blimey, this is really worrying me. I've emailed Tina some more details today in the faint hope that an IVA is possible but this now seems to blow away any hope we may have!

If it is bankruptcy then it sounds like Santander will drag me through the courts for damages.

If they can do that then surely all financial institutions will incorporate such a clause?

Just when you think things can't get worse!

Basically all it means is that convening a meeting of creditors is a breach of your agreement with them. There will be another term somewhere else under which in the event of a breach, they can terminate the agreement, in which case the sum due will become immediately payable.

Standard practice. The agreement cannot stop the presentation of a petition or application for an IVA. That would be contrary to public policy and thus unenforceable.

Ian