I have just sold my house to pay off the iva and was wondering what is there to stop me spending all the money and going bankrupt? I have not got enough money to pay what they want and am concerned that if I give the creditors less than offered, they will be able to still try and get more from me. Please advise - thank you
If you are making your best offer to creditors, then there should be no reason why creditors should turn you down.
Was the release of equity in your property an express term of the IVA? If so, and if you spend the money and then go bankrupt, you may find yourself in serious trouble with the eventual Trustee, and if your IP suspects that the money you are holding may be at risk, they may feel that bankruptcy proceedings ought to be commenced swiftly in order to protect creditors position.
I suspect that your IP is about to propose a variation to your creditors, offing the monies you have available in full and final settlement. If I am correct, then my best advice would be to let that process run its course, and await the outcome. If it does not go your way, the Supervisor cannot enforce payment of the monies across to the IVA, but the Trustee in bankruptcy will look keenly at all transactions you have effected over the last few months.
I have seen serious legal proceedings commenced against bankrupts who have not acted in their creditors best interests - including attendences at Court and community service orders. I would not therefore recommend this course of action to you.