Iva to Bankruptcy

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C.Star

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Post by C.Star » Fri Jul 23, 2010 12:01 pm
Afternoon All,

Ive been in an IVA for 1 year & 8 months and i now feel bankruptcy would have been a better option. I have no assests not even a car no mortgage or anything.

Would all the money i have paid so far be paid towards to the bankruptcy?

Thanks
 
 

kallis3

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Post by kallis3 » Fri Jul 23, 2010 12:06 pm
Hi, and welcome to the forum.

Your payments so far would just go towards your IP fees.

Why do you feel that BR would be better for you?
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk
 
 

Michael Peoples

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Post by Michael Peoples » Fri Jul 23, 2010 12:33 pm
Bear in mind that if you went bankrupt you could be subject to an income payments order for the next three years which is not much less than the remainder of your IVA. The IPO payments could be the same or even greater than the IVA payments so be careful before you opt for that route. If you have received correspondence from a 'bankruptcy advisory service' be very careful and speak to your IP.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

C.Star

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Post by C.Star » Fri Jul 23, 2010 4:03 pm
Thank you for the feedback. Im can't actually afford to live at the moment i fell into arrears with the council tax because my IVA didn't make adjustemnts for it so i had to take a pay day loan to cover it which got me into a mess. Luckily i was bailed out by family but my rent went up and they ignored this too so im constantly over drawn every month. Im supposed to be recieving a call from Grant Thorton to talk about a review to ammend my current payments, If this happens then i will be happy if they are reduced if not then i simply can't afford to carry on.
 
 

plasticdaft

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Post by plasticdaft » Fri Jul 23, 2010 10:33 pm
If you cannot get Grant Thornton to agree to an amount that you can afford then discuss the option of going bankrupt with them. Why didnt you go BR in the 1st place??

Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
 
 

Julie

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Post by Julie » Sat Jul 24, 2010 11:18 am
Hi - discuss everything with your IP and hopefully your payments can be adjusted to allow the iVA to continue. This should have been done at your annual review - but give GT a chance to help you before rushing into BR.

You will have to pay fees to go BR and as Michael says, you could have to make payments for 3 yrs under BR.

Re-do your income & expenditure and have all the facts ready for your discussion with your IP.

Good luck and keep us updated.
 
 

MelanieGiles

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Post by MelanieGiles » Sat Jul 24, 2010 12:48 pm
I don't think it is fair to say that payments made over a period of 1 year and eight months would all go in fees. In fact these days this is highly unlikely - however the money will need to be distributed to your creditors, and some distributions will probably already have been made.

I would firstly see if you can get the payments reduced by Grant Thornton, and if not or if creditors reject your eventual offer, then perhaps bankruptcy would be the best thing - but you will need to face paying for it yourself and this will cost in the region of £600.
Regards, Melanie Giles, Insolvency Practitioner
 
 

Shining

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Post by Shining » Sat Jul 24, 2010 8:55 pm
Have a chat with GT and hope it goes positively for you x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
 
 

stormsylv

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Post by stormsylv » Sun Jul 25, 2010 8:09 am
Hi
I would just like to say that bankrupcy for me would have been a much better option too but this option was given to me at the outset from my IP. I have no mortgage or assets but I just preffered an IVA, it seemed a much fairer approach even though I am probably worse off in the long run.
Thankyou.
IVA Official Completed 27th July 2012!!!
 
 

kallis3

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Post by kallis3 » Sun Jul 25, 2010 8:23 am
Have to say that the majority of mine went in fees for the first year and a half. There's not an awful lot gone back to the creditors yet.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk
 
 

MelanieGiles

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Post by MelanieGiles » Sun Jul 25, 2010 9:41 am
That is a lot of money Jan - what was the basis for nominee and supervisory fees in your particular case? And have quarterly distributions been made from the funds paid in?
Regards, Melanie Giles, Insolvency Practitioner
 
 

kallis3

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Post by kallis3 » Sun Jul 25, 2010 10:30 am
I'll have to dig the paperwork out Mel, and I have no idea if payments are made quarterly.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk
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