In the third year of the IVA I started to accumulate post IVA liabilities, which were ignored by my supervisor despite HMRC demanding that they petitioned for my bankruptcy. This continued for a further two years with HMRC repeating their demands. At one stage HMRC wrote to my Supervisor stating that the only reason he could possibly have for not petitioning for my bankruptcy was to increase his own fees. This position continued until I had paid 63 payments into the IVA, when the position changed completely, with my Supervisor giving me 7 days to clear the post IVA liabilities to HMRC, or else he would "fail" the IVA.
I could not clear the debt within that timescale, so the IVA was "failed" in February 2016.
Throughout the duration of the IVA, I had ongoing problems and issues with the Supervisors, with them taking over 6 months to respond to letters at one time, due to "their pressure of work".
Out of the £80955, plus initial fees that I paid into the IVA, nearly £42,000 was taken in their fees and disbursements.
There have been three hearings so far, which have been adjourned to allow me time to resolve the issue, which I am struggling to do.
The private residence is now mortgage free (value £250k), and there is £150k equity in the commercial property. I need to release funds (£150k) to settle my IVA creditors in full, my age (64) is making this impossible.
I have two questions, firstly do I have any comeback against the Supervisor for not failing the IVA at the time of the first breach, and also does anyone have any suggestions for a way forward.
Any thoughts would be greatly appreciated.
Unfortunately the regulatory bodies will not intervene directly and will only offer a slap on the wrist or a fine against the IP ( which the regulators get).
Other than that you could challenge the IP in court, which could prove costly and I would suggest a chat with a solicitor experienced in insolvency work. On the subject of costs -- those fees you have quoted strike me as very much on the high side -- are they in accord with the fee structurea greed by the creditors at the outset ( this should be detailed in the proposal and probably amended in the Chairman's Report of the initial meeting of creditors.
As for the way forward, your options are very limited, especially with HMRC pressing for BR which they might well bring about themselves once the shackles of the IVA are released. Being blunt: at 64, if I were in your shoes, I would wind up the business and sell the commercial property (or sell as a going concern, which would be better all round) and look at an early retirement. This should allow you to pay off liabilities, keep the home and move forward.
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