what happens if they do not accept my offer

[terry.d]

I have an iva in place, and through no real fault of my own i went through a difficult period both financially and setting up a standing order with a bank, i went into arrears and agred to pay an additionalamount.However i have now just set up a suitable bank account which offers me internet banking and direct debit set ups etc. My iva company has just sent me a letter to say that the iva has failed, until my new was set up i have saved up quite a few monthly payments and have offered this to them, they have told me it may not be possible ? what happens if they do not accept my offer now i can keep to regular payments ?

[pbeck]

Almost all IVAs now include a failure clause if you get over 2-3 months in arrears with payments.

I am surprised that if you were saving up this money the IVA just failed. Could your IP not have agreed to accept postal orders from you until the DD facility was up and running ?

Did they not come up with any other suggestion of making the payments that would have been acceptable in the interim ?

Did they give you adequate notice of impending failure together with a deadline for compliance ?

It would appear that you did enter into an agreement with them to clear the arrears, so if they then failed to stick to this agreement causing your IVA to fail you would have grounds for complaint to the IPs authorising body.

Unfortunately once an IVA has failed and all parties notified of this fact, I see no way of legally resurrecting it, you would either have to start a new IVA with another 5-year payment period (if the creditors will agree to it), or come up with an alternative method of resolving your situation.

Philip Beck - www.freeivaadvice.co.uk

Licensed Insolvency Practitioner and IVA specialist

[terry.d]

The iva company did not give any notice that they were failing the iva, and an alternative method of pament to them was postal order and seeing as it caused so much hassle to get £? out each day to cover the amount and then a postal order etc i decided to save the money and wait until i got a suitable bank account

[MelanieGiles]

If you have the money to clear the arrears, and the Supervisor has not yet concluded his/her administration of your case, I cannot see why they just can't withdraw the default notice and get the IVA back on track. After all this is in the creditors interests. You will of course need to be able to bring the arrangement back into line.

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