Supervisor have the right to issue the petition without notifying the creditors?

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by reehad » Wed Jun 28, 2017 12:41 pm
hi just want some advice i failed my iva and the supervisor issued me with a bankruptcy petition few month ago and now than i have paid the creditors directly they are willing to dismissed the petition but have issue me with a big fees. just want to know if the supervisor have the right to issue the petition without notifying the creditors cos none of the creditors knew about the bankruptcy
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by Foggy » Wed Jun 28, 2017 12:45 pm
Sometimes the option for the supervisor to go for BR is written into the IVA agreement as a fall back option. This may be the case.
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Lisa Thomas
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by Lisa Thomas » Wed Jun 28, 2017 1:45 pm
You have a duty to inform the Official Receiver/Trustee in Bankruptcy of your creditors so even if the Supervisors report did not mention it, which would be highly unusual, then they should be written to as part of the Bankruptcy procedure anyway.

Did you complete a Bankruptcy questionnaire and return it to the Official Receiver?
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Michael Peoples
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by Michael Peoples » Wed Jun 28, 2017 2:00 pm
If you paid the creditors they should not have taken the money as the IVA would still be in place until the bankruptcy order is made. I cannot see why you would fail an IVA and then pay the creditors directly outside the arrangement and the supervisor will have acted in accordance with the terms and conditions of your IVA.

Your IVA supervisor can still make you bankrupt even if the debts have been repaid as you have been in breach of the IVA. A trustee in bankruptcy may then want to investigate how you could repay creditors months after failing an IVA and this could lead to more costs. If your IP is prepared to settle perhaps you should too.
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