what to do!!

[gobbin]

hi

please help, we are in the process of having our iva proposal drafted by an insolvency practitioner and i think we we need to make a decision. (the whole thing started with us receiving a statutory demand and being unable to pay a lump sum). we subsequently went to the ip for advice and help. the time runs out this week for applying to have the statutory demand set aside, after which the creditor can petiton for our br. do we need to apply for an interim order, now? to prevent this happening? our ip says that the proposal for the iva will be ready in time to prevent this, and the iva proposal will neagte the br petition? is this right? . what happens if the br petition is issued against us before the iva proposal is put to the court? please advise, we are literally sick with worry and stress at thias time. also, we will eventually be faced with paying back about 50p in the pound? is this about right . we have a dispoable income of around £400 per month for our creditors.

all advice gratefully received.

gobbin

[mish1953]

Hi

Welcome to the forum , its a friendly place .

I have been thru BR to-day, im not an expert - others here are !

When I was chatting to the judge - and I mean chatting - it was very informal , he asked if I had looked at other options . He doesn't have to make you BR he can ask for an IVA to be looked at .

Have a look at
http://www.insolvency.gov.uk/guidancele ... tion.htm#6

it says
At the hearing the court can do one of 4 things:

Stay (delay) the proceedings - often because the court needs further information before it can decide whether to make a bankruptcy order.

Dismiss the petition - perhaps because an administration order would be more appropriate.

Appoint an insolvency practitioner - if the court thinks an individual voluntary
arrangement would be appropriate. This will only be possible if your assets are more than £4,000; your unsecured debts are less than £40,000; and you have not been bankrupt and have not made an individual voluntary arrangement in the previous 5 years. If you do not wish to enter into such an arrangement, you should inform the court.

Make a bankruptcy order - The effect of the bankruptcy order, and the restrictions it places on you, are explained in The Insolvency Service booklet 'Guide to Bankruptcy'. You will become bankrupt the moment the order is made by the court.

In my case the BR was the right thing to do.

I would guess that if your creditors do take to to court for BR that the judge will want to consider the options.

Good luck
Mish

[aguise]

Hi Gobbin
To the best of my knowledge that is correct the iva will stop the stat demand. Others more knowledgable will answer this.
The 50p in the pound depends on your income and level of debt if you post more then more advice can be given.
I would like to say try not to stress, easier said than done I have been there, but getting into a state will not help. Check with the ip that evreything is going as it should be and if you dont understand anything ask them until you do, also the forum will help where possible. The forum is for support as much as info so if you just feel like a moan then we are here for that too.
All the best to you both. Keep us informed of how things go.

Ang

[MelanieGiles]

Hi gobbin

Your IP is acting entirely properly and giving you good advice. An Interim Order is not needed at present, but you seem to be a little indecisive with regard to the IVA. Have you properly considered all options available to you, and why do you feel that an IVA is the right way forward? A 50p in the £ return is a good one, but do make sure that you can meet the repayments.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk