why does a proposal have to go to court

[lesley]

why does a proposal have to go to court before it goes out to creditors.

[MelanieGiles]

Hi lesley

It doesn't - only if there is a real reason to try and stop a serious ongoing action by creditors such as a bankruptcy petition, charging order, attachment of earnings order or suchlike.

Is your IP trying to tell you that you need an Interim Order? If so, what are the reasons for this.

All IVA applications have to be lodged in Court and granted a Court number under current insolvency legislation. For the debtor this is helpful, as it provides protections against creditor action into the future.

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

[lesley]

That is what he said lodged in court. there is no interim order being pplied for i have only just started to miss payments. All phonecalls from creditors up to now have been civilised. How long before creditors get proposal after it has been lodged in court

[neverending]

Hi
To give you some idea mine was lodged in court on 5th Feb and agreed via creditors meeting on 25th Feb.
Hope this helps
Regards

[MelanieGiles]

Lesley

Most IPs will send the propsal to Court at the same time as it is issued to creditors. There is then a statutory notice period of the meeting to creditors, but generally I think most IPs try and give 21 days to ensure proper circulation to the right departments within the banks.

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