Bankruptcy vs IVA

[icebrick]

Before anything I really wanted to a BIG SINCERE THANK YOU to everyone who took the time to reply and to everyone who atleast took the time read my posts here.
Myvesta (or Grant Thornton rather) are strongly advising me to consider a DMP because they feel that I don't have enough to manage my current outgoings. I might just about have enough to make up the £250 mark or just over that.

If I opt for a Bankruptcy then will this be notified to my employer? I signed a few documents giving Grant Thornton the right to proceed with an IVA but they haven't even spoken to my creditors yet. So can the process still be reversed? And if I do ask them to, then how can I deal with my creditors from thereon?
Cheers.

[chris.g]

If you file for br then your employer will probably get to know because your tax code will probably change.....the OR claims the tax from you, ery complicated and not quite sure how it works so an expert will probably be better advising you.
As for reversing, I think that until you sign the IVA proposal then you should be able to reverse it. Have you paid any fees upfront? If you have then i doubt you will get them back.

[icebrick]

No upfront fees luckily. I spoken to HR and they say that they have to now speak to an HR Manager because they couldn't give me a precise answer. What they told me is that it would be a good idea to advise my General Manager of my current situation. But they are not sure if it is an obligation. Sounds like an issue they haven't dealt with before but I know there are people who are currently running on IVAs.

One other concern concern that I have is my residency status in the UK. Although my Permanent residency has been approved, the home office is yet to return the passport with the ILR stamp.Does this have any bearing on me applying for a bankruptcy? Can my IP guide me through the process or are there other sources that might possibly be able to help my current circumstances?

Cheers.

[icebrick]

OK. I get the message. Thanks.

[chris.g]

I'm not sure if the br will effect your residency. One of the experts will be better to answer or even get in touch with an immigration expert,

[ianmillington]

Sorry to harp on about this but as I stated in your other thread "too soon to apply" there is the issue of domicile to address. You need to be domiciled in England and Wales to either go bankrupt or do an IVA here. If you are not domiciled here any bankruptcy or IVA will be invalid. You can be resident here for many years but that does not mean that England and Wales is your domicile.

I'm not convinced you are domiciled here - the absence of Indefinite Leave to Remain ("ILR") could be a pointer to that. It may be that you need to get ILR before you avail yourself of the England & Wales insolvency legislation which is why I said earlier you need to take legal advice on the subject before you do anything. I don't claim to know the answer, although I can confirm there is definitely a question.

For an interesting article on domicile see here

http://www.jonstow.com/Domicile.html



Ian

[icebrick]

Thanks. My ILR had been approved in writing last week after a long delay. But it will be a while until I see this on my passport (1-2 months perhaps).

[jo.a]

your application for ILR will just take around 4weeks then your doc. and passport will be return to you ..applying for an iva would take around 2-3months to complete mine was 4months ...so my point is you r ILR stamp or passport doc. will be with you soon and you are just starting to apply ....by the way .. my residential status is ILR just last aug... my iva was approved yesterday .. hope this helps

[ianmillington]

Not being an expert on these things but my brief research into ILR would suggest that that quite likely demonstrate the permanence necessary for domicile.

http://www.globalvisas.com/uk_immigration/
indefinite_leave_to_remain.html

If ILR has now been granted then Bankruptcy or IVA should now be open to you. However, get the advice on your job before you take any action at all on the basis that you can't be sacked for merely enquiring about something.

I would agree with Melanie that if you enter into an IVA that incorporates overtime, unless that overtime comes with a cast-iron guarantee then there is a high risk of failure.

Forgive me if you said this elsewhere but how much do you owe in total?

[icebrick]

your replies have been very helpful. The total debt owed is 34000.

[icebrick]

I am in the middle of initiating an IVA. Basically if there is an issue can I reverse the process before mutually agreeing to an IVA proposal? I am assuming that any IVA proposal submitted by my IP has to be approved by the creditors through a creditors meeting and then acknowledged by myself prior to proceeding.
If my creditors agree on the first draft submitted, then would I be able to decline this proposal and opt for bankruptcy at this stage? I have made a few drastic compromises to my monthly expenses to fit into the IVA criteria.

Also would someone kindly tell as to when the IVA becomes a legal commitment?

Cheers.