Hi, I am an already in an IVA going to apply for bankruptcy. Is this better than bankruptcy being applied on me by the IVA company and when I put my debts down do I still do them individually or one lump sum under the IVA company?
you would have to list the debts individually. Also the IVA has to fail before a court is likely to declare you bankrupt.
Look at the T&C's in your IVA agreement it should tell you how many payments need to be missed to constitute failure. You also need written confirmation from the IP of failure to present to the court.
The IP may be instructed by the creditors, on failure of your IVA, to petition for your bankruptcy but they are not compelled to do so. They may choose to chase you for the money in other ways first as bankruptcy obviously means they will get little or nothing.
Beware if you have equity in a property, the IP will most likely apply to the creditors to be appointed the trustee in your bankruptcy and they already have all the facts as to property value etc and charge a great deal of money.
The way to be in control is to deal with the bankruptcy yourself once the IVA has been officially deemed as failed but timing and a plan of action is vital.
Thanks John. I spoke to my IP today and it's my fault really as I've ended up with a further 20k debt only 18 months after the IVA was started. Apparently I was meant to close all accounts when the IVA was approved.
With the IVA and 20k debt I can't afford to repay everything now as interest rates are just crippling. It seems the only option is bankruptcy even though my IP has asked for a breakdown of income/exp again. I am paying nearly £500 over my income so can't see this being an easily solved issue
Thanks. I'm unsure who to turn to now, tried the freephone number but can't get through and what you've now said about the receiver has scared me somewhat!
Have received paperwork from my IP to get a variation but they're saying the minimum is 25p per £ so with £55 im sure it won'te reduce my payments alot.
I have already spoken to one of the card companies I owe money to and they are willing to reduce payments and possible interest but only for a 6 month period.
It might sound stupid to accrue more debt and it was but when you're used to having a joint income of £80k which drops to £19k with divorce, you can see where the problem lies!!
did you leave a message with your contact details when you rang the helpline? I'm surprised they haven't returned your call although I do know the team are flat out most days.
You could always call Paul. His number is available through the link to his website which is at the foot of each of his posts.
already in an IVA going to apply for bankruptcy
Posted - 18 November 2008 : 17:31:20
