Can my son back out of his newly signed IVA, and if so, how ?

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robert500
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by robert500 » Wed Apr 19, 2017 3:46 pm
My son has just signed to set up an Iva, however they are only at the stage of contacting his creditors, after speaking to the citizens advice they have told him it's not his best option as he does own 2 properties, can he still back out? And if so how can he do this? REGARDS
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Foggy
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by Foggy » Wed Apr 19, 2017 4:05 pm
If they have not had the creditors meeting andf the IVA hasn't been accepted he simply has to tell the firm to stop. Most firms do not charge in these circumstances, but it will depend on whatever terms your son has agreed to.

Having 2 properties is not, in itself, a reason not to have an IVA and, indeed, it depends upon what other options CAB are suggesting as to whether they would be safe in another solution. A DRO is out of the question as he doesn't qualify and a DMP depends upon the agreement of the creditors and is not binding --- they can simply make him bankrupt to protect their own interests, in which case the properties might be forfeit anyway.

CAB can advise on the solutions, but you need to speak to a licensed and qualified insolvency practitioner to examine the whole picture and advise on the best way forward.

Might I ask which firm he is working with at the moment ?
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Michael Peoples
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by Michael Peoples » Thu Apr 20, 2017 9:35 am
I agree with Foggy. What are the CAB suggesting your son does instead?
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Lisa Thomas
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by Lisa Thomas » Thu Apr 20, 2017 1:35 pm
The IP advising should have gone through all options open to your son and explained why they felt an IVA was the best in his circumstances.

Perhaps the IVA was considered the best option because he would be at risk of losing the properties through Bankruptcy.

He should check the correspondence from the IP to see why they discounted the alternative options or speak to them again.
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kallis3
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by kallis3 » Thu Apr 20, 2017 1:42 pm
He could back out and speak to a different company for advice
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