What happens if creditors refuse a F&F

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by flowerpot » Thu Jan 14, 2010 8:31 am
This post if further to my earlier one about making f&F offer.

If in fact the f&f was declined, what is likely to happen in the short term? Do you have to get by on a wing and a prayer hoping you can make some kind of payment into the IVA after all other I&E is covered?

What if this isnt as much as you previously paid in?

What happens when you get to a stage you cant afford to pay anything owing to a negative I&E?

If they refuse the f&f, do creditors ever opt to apply for a bankruptcy order at this stage, pulling the rug from under you?

In our ccase, if they did opt for this, we have no other assets / funds to add to what would be in the IVA pot anyway.

What happens in bankruptcy to the IVA pot of money? Do the IP expenses come out and then the remainder split between the creditors?

Sorry, lots of questions...


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by kallis3 » Thu Jan 14, 2010 8:54 am
Hi flowerpot,

If your F&F is turned down, you can just carry on paying your IVA as you were. If you can't afford to do that, you can either go BR or do a debt management plan.

Unless there is something in your original proposal about creditors making you bankrupt, it is unlikely that they will do so as it costs them a lot more than it will you.

If they do refuse and you cannot continue making payments then you will have to let the IVA fail, this usually takes three months of missed payments.

As regards the money, your IP will probably already have taken their fees, anything left will be split between the creditors.

Once it fails, your creditors will start to hound you again.

Hopefully it won't come to that.


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by flowerpot » Thu Jan 14, 2010 9:04 am
Thanks Kallis, it helps to know all of the facts.

This all really hangs in the balance of what happens with the bank of england base rate.

Then, from a health point of view, weather I can get a job I can cope with.

My health has had a massive impact on our finaces, when the IVA was accepted, the doctors and I were hopeful of treatment being successful, but so far after 3 proceedures and an armfull of medications, I still have documented symptoms.

They have admitted they may not be able to resolve the matter and I may have to learn to live with the condition. Although its not life-threatening, it is a serious condition and is equally disabling.

Kind regards


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by MelanieGiles » Thu Jan 14, 2010 9:20 am
If the revised proposal has been properly set out by your creditors, there should be no reason why the offer will not be accepted.
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