What can i do now?

[ivafailling]

My arrangemnet has ben cancelled and i am now awaiting the creditor harrasment.

I inted to declare br, but cant afford it at the min, in my origional arrangemnet it states the funds willl be retained by the supervisor to pay for the br should my arrangment fail, but they are refusing point blank to pay saying there is no funds available, even though ive paid in about 15 grand.

Can anyone advise what to do next legally regarding the refusal to pay when its quite clear they should???

[Adam Davies]

Hi
I wouldn't bother chasing them,you'd be better to save the £485 and bankrupt yourself.It could be that they have to seek your creditors approval to begin proceedings and it may also be that there are not enough funds left after IP costs.[they may have paid a dividend at the annual review]
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[ivafailling]

No way, doesnt seem right ive seen what amount they take from payments, the creditor gets very little out of about 15 grand the ip has taken about 9.

You telling me that i have it in writing that they will pay the fees and they wont just cos they dont want to and there is nothing i can do??

What kind of behaviour is this?

[Adam Davies]

Hi
Well you could complain to the regulatory body but it will take ages to get anything sorted and I really don't think that you will.
I'm not saying that I agree with it but just,for your own sake,bankrupt yourself and then you can move on
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[welshman]

I would still contact the regulatory body even if you do bankrupt yourself. The more this happens with some IPs the more they will think they can get away with it. That's what the regulatory body is (supposed to) be there for

[MelanieGiles]

If the terms of your IVA provide for your IP to make you bankrupt, then they can hardly justify they have no funds if you have paid in over £15k. Please ask your supervisor to write to you and tell you exactly why he/she is not submitting a Supervisor's petition, and the grounds for such a decision. Funds are supposed to be retained for this very purpose, in priority to the Supervisor's own fees!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Adam Davies]

Hi Melanie
Isn't it still down to the creditors to agree that this clause is enforced ? or does the IP not have to wait for their instructions ?
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[MelanieGiles]

No - if the IVA proposal provides for bankruptcy, then the IP must comply with those terms whether he/she wants to or not.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[ivafailling]

Thanks for the replies, i am awaiting an answer from my ip as to why.

I believe i am in no way unique, i read many threads that when an iva fails the supervisor sends a cheque to cover the costs, i read a thread recently when a guy had only made 4-5 paymnets and then failed and the supervisor still snet him the 500 to cover the costs.

I was under the impression that this was common practice, ie retaing the first 500 quid to cover the even of the arrangemnet failing???

[welshman]

Thanks for this info. I was told when mine failed that the arrangement did not allow for the IP to petition so paid for my own bankruptcy. if I re-read the document and find that they should have petitioned, could I still claim this money back from them even though it is a year down the line?

[MelanieGiles]

If you have already petitioned for your own bankruptcy, I can't see that there would be much point.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[welshman]

You mean that the IP would not refund it even if they should have petitioned for my bankruptcy? They told me they would not be petitioning but if they should have done it I should be entitled to claim that back from them should I not?

[MelanieGiles]

You have an element of argument there - but the petitioning costs and structures for a supervisor's petition are completely different from a debtor's petition, and even if you were to receive a refund, you would have to hand this over as a windfall assuming you are still bankrupt in any case.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[welshman]

Okay thanks.

[ivafailling]

Well they have agread, and are going to declare me B/R.

Might sound a bit daft but can anyone advise what happens now step by step, i am told to wait until a certain member of the ip firm get in touch?

What timescale am i looking at?

And also when does the name go in the paper, after the deed is done of when you are petioned?