What happens when IVA fails?

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Mattybaldy

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Post by Mattybaldy » Tue Aug 10, 2010 3:40 pm
Hello folks,

With my IVA likely to fail at the end of the month due to my being in no position to recommence payments after a payment break, I am just wondering what happens next?

I was told by my IP that, when agreeing the payment break, my creditors had instructed them to fail my IVA if the payments didn't start again at the end of August.

Bankruptcy seems to be the only option now barring some kind of miracle, but what will happen in the meantime? Am I going to face a deluge of calls and letters from creditors again the minute the IVA goes down the pan?
 
 

kallis3

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Post by kallis3 » Tue Aug 10, 2010 5:55 pm
You will get a letter telling you the IVA has failed, and I'm afraid you will back to square one and the creditors will more than likely start to hassle you again.

You can tell them that you will propably have to go bankrupt.
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.
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Mattybaldy

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Post by Mattybaldy » Tue Aug 10, 2010 7:40 pm
So, what happens in terms of the money paid into the IVA over the past 2 and a half years? Does it come off the total debt?

Having said that I think our IP has had the lion's share of the money paid in to date.

Looks like bankruptcy is the only option.
 
 

kallis3

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Post by kallis3 » Tue Aug 10, 2010 7:46 pm
Any money left after fees will be paid across to your creditors, but of course they will start putting interest and charges on again.

If you've no assets to lose then bankruptcy will be a fresh start 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
 
 

Adam Davies

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Post by Adam Davies » Tue Aug 10, 2010 10:42 pm
Hi
I think it will take a few weeks, possibly months for creditors to start contacting you again.
Do you own your property ?
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Andam Davies
 
 

MelanieGiles

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Post by MelanieGiles » Tue Aug 10, 2010 10:43 pm
It is possible that your IP may be able to fund the cost of bankruptcy. Have you discussed this with him/her yet?
Regards, Melanie Giles, Insolvency Practitioner
 
 

Mattybaldy

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Post by Mattybaldy » Wed Aug 11, 2010 11:24 am
I have not yet discussed bankruptcy with my IP, as I am still clinging to the hope that business will pick up and I will be able to scrape together the money to recommence the payments at the end of the month.

I have only recently become self employed after giving up on trying to find a job and this time of year is notoriously quiet in my line of work. I am holding out as long as I can before I contact my IP and discuss the possibility of bankruptcy.

I had no idea that my IP could fund the cost of bankruptcy. How does that work?

I do not own my own home or have any assets to speak of either.
 
 

Mattybaldy

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Post by Mattybaldy » Wed Aug 11, 2010 11:25 am
I have not yet discussed bankruptcy with my IP, as I am still clinging to the hope that business will pick up and I will be able to scrape together the money to recommence the payments at the end of the month.

I have only recently become self employed after giving up on trying to find a job and this time of year is notoriously quiet in my line of work. I am holding out as long as I can before I contact my IP and discuss the possibility of bankruptcy.

I had no idea that my IP could fund the cost of bankruptcy. How does that work?

I do not own my own home or have any assets to speak of either.
 
 

MelanieGiles

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Post by MelanieGiles » Wed Aug 11, 2010 12:42 pm
You will need to check the terms of you own IVA, to see whether there is provision for the supervisor to petition. Or alternatively have a chat with them to see what the position is.
Regards, Melanie Giles, Insolvency Practitioner
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