received a letter that my IVA had failed

[Adam Davies]

Hi
They will pass the debt onto a collection company
Regards

[ianmillington]

This is one of those confusing situations. To me, an IVA could have "failed" but until a certificate of termination has been issued the IVA is still alive and could theoretically be rescued. The acid test will be the receipt of a certificate of termination and, as I mentioned earlier, removal of the case from the DTI register.

Your position? Once the IVA is terminated, you are back at square 1 as others have indicated. Unless some of your creditors are bankruptcy friendly eg HMRC and Amex you are likely to be in limbo until you present your own petition.

Ian

[MelanieGiles]

It is very unlikely that creditors will petition for your bankruptcy as a result of a failed IVA. This will cost them approximately £1,500 of their own money, and if your IVA has failed due to non-payment, and your Supervisor has not petitioned for your bankruptcy on grounds that you have assets which could be made available to creditors under such proceedings, I cannot see the logic in anyone proceeding down such route.

What they would prefer to do is re-establish contact with you to see if you can pay them anything on an ongoing basis. This will resurrect the letters and phone calls which you were probably experiencing at the time your IVA was presented, and may actually lead you to believe that the £485 cost of a debtor's (ie your own) bankruptcy petition is money well spent to put your financial difficulties behind you once and for all.