Questions about Individual Voluntary Arrangements and Insolvency.

Moderators: TalbotWoods, JaneClack

By petera
#191582 I have now defaulted on my IVA after only 2 payments (no work)

I have been told there is a creditors meeting 21st April

I have said all I can offer is either a suspension of IVA until I can find work or a substantialy reduced payment figure (The original was always unrealistic)

Does anyone think the creditors are likely to push for bankruptcy ??

Also is there a difference between me filing for BR or them doing it to me ?
Thanks !
By petera
#191791 No thoughts anyone ?
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By sapphirelady
#191868 Not really sure on this one, but just to give a reply! Do you have a job or house that will be affected by Bankruptcy? If not then go for it. It will be over quicker and you won't have to pay as much back. I don't know if they will make you Bankrupt or if you will have to do it yourself. You could speak to your IP who may be able to give you some idea of what will happen. Sorry if this isn't helpful but good luck!
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By Red Devil
#192827 I defaulted on my IVA after 4 payments and ended up going BR. I filed for BR myself as I hadn't paid enough for my IP to do it and I didn't want to wait until my creditors did it as I wanted a fresh start.
By petera
#192839 Thanks for the replys
Well it never rains but it pours !
just to add to my misery we have just found out my wife is being made redundant !
Have you ever wondered if someone up there is out to get you !!
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By Shameless
#193343 Looks like a variation is out of the question if your wife now is going to be out of work too.

How much have you paid into your IVA? If your IP fails the IVA and there is insufficient for them to make you bankrupt they will issue you with a certificate of non compliance which in effect puts you in the situation you were prior to the IVA commencing.

Yes your creditors would make you bankrupt the problem will be when. You could be looking at 18+ months as they will just start to chase you again like they did before. It costs them to make you bankrupt so its doubtful they will be keen to approach that avenue unless they exhaust all other collection methods.
By petera
#193347 Ive only paid aprox 1000 into IVA
I do expect them to just start chasing again with the main creditor (nat west) going for a charging order on the house
If a charging order is issued and I then later go BR does that cancel out the charging order ?

Thanks.
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By Shameless
#193348 Then they wont make you bankrupt they wont have even covered the Nominees fee yet.

If you get a charging order made final before you go bankrupt there is no going back.

Is there equity in the property? If your going to end up bankrupt anyway and there is equity it may well benefit you to have additional security on the house to reduce the equity which will reduce any money an OR comes banging on your door for. It will be much easier to drip feed a charging order than to have to come up with a big chunk post bankruptcy or risk loosing your house.

If there is no equity then you need to try and make yourself bankrupt before they go for a charging order (they would still have to do a CCJ first so you have time unless they already did one prior to the IVA)
By petera
#193351 There is equity 20k
However my wife would hopefully be in for half that due to benificial interest (we can prove she paid 10k deposit)

This leaves 10k
By the time fees etc come off we are wondering what figure the OR may accept for my wife to buy my share ?

Any thoughts ?
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By Shameless
#193352 you just cant tell it will depend.

Who is your IP?

Its possible if you speak to them they will pay for your bankruptcy if you have assets under bankruptcy (as they will then take fees from the bankruptcy) However if it was a factory you went it its unlikely.

But...

If they don't when you make yourself bankrupt and you have assets your OR will generally appoint an IP (off a rota so a random one) to deal with the house.

That's why its difficult to guess what they will accept as each IP will view it differently.

If it was where I work as a guess you would be looking at 6/7k if it was determined your equity was 10k
By Thatch
#193860 Hi I used to work for an IVA factory. Unless it is prescribed that they petition for your bankruptcy, they won't.

The house is your main problem, and to be fair would have been a real problem in the IVA as you would need to have taken out your equity in or around month 54 anyway.

You may well be able to do a deal for a relative to buy your equity from the OR for about £7,000. The OR wants cash not a property and with thousands of cases on their books they want to move things on. He will appoint an Independant trustee from a local firm to do this.

I run a bankruptcy advisory service so feel free to PM me.