IVA Failure ,what does it mean ?

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by tony237 » Mon Aug 14, 2017 2:39 pm
I have been in an iva for 6 years , now the company payplan are pushing for an iva failure .Despite my attempts to arrange with them to sell my property and pay of the debt. I have received a letter saying I have 7 days to pay of arrears or make some other arrangement with them.
My question is what position would a failed iva leave me in ?
would the 14,000 I have paid into it be counted with the creditors or would it go back to the original debt of 29,000?
what would bankruptcy mean for me?
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Michael Peoples
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by Michael Peoples » Mon Aug 14, 2017 3:18 pm
It does depend on what creditors say. It may be in the proposal that bankruptcy proceedings are to be instigated or another meeting of creditors may need to be called to canvass their opinion. Alternatively, your IP may just fail the arrangement which effectively means you are back to square one. Creditors could potentially add back interest and start to charge again although they would have to give credit for any payments made.

It would not be advisable to fail the IVA as bankruptcy could mean the loss of your property and after all this time it does seem unfair. You should request a variation and make some form of offer to save the IVA and creditors are usually sympathetic. If you are selling this could form the basis of the offer although you could lose most of your equity should you do this [depending on the level of debt]. Otherwise you could try and raise a lump sum from family/friends or a secured loan which would satisfy creditors and you could then sell when the IVA was completed.
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by Foggy » Mon Aug 14, 2017 3:35 pm
I would remind them that you are already attempting to negotiate an arrangement and it is they who are failing to rwesp[ond or discuss possibilities, therefore, you have already complied with their current request.
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by luluj » Tue Aug 15, 2017 5:48 pm
I may have missed an earlier post but what grounds are they suggesting failure ?
Seems very unfair at this stage
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