IVA Amount

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kentmikey

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Post by kentmikey » Sat Nov 14, 2009 4:24 pm
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Hi, can i just clarify if my entire debt was say £20k but IVA over the five years was for £13,000 is £13k classed as my debt or still the £20K until the IVA has run its course. Incidentally, if I were to go Bankrupt is the bankruptcy for £13k or £20k

Mikey
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kallis3

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Post by kallis3 » Sat Nov 14, 2009 4:51 pm
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Hi Mikey,

You will always owe the full amount until the end of the IVA, when whatever is left will be written off.

If you were to go bankrupt, it would be for the full amount.
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size5

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Post by size5 » Sat Nov 14, 2009 4:52 pm
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The debt is not written off in an IVA until the end, so if you had the means to pay back the 20k before the 5 years was up, eg a lottery win, big pay increase etc, then that is what you would have to do, with the benefit of full protection from your creditors, guaranteed interest freeze etc.

With a BR then you go BR for the full amount also.

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kallis3

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Post by kallis3 » Sat Nov 14, 2009 5:02 pm
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Glad that I got it right Mike!
Sharing from experiences of dealing with debt
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kentmikey

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Post by kentmikey » Sat Nov 14, 2009 5:51 pm
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Well Done Jan, gold star in the post ;)
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thefsg

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Post by thefsg » Sun Nov 15, 2009 9:24 am
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Is that right - you're completely back to square one? So if you've paid £10k of which £6k went to the creditors at the point at which the IVA fails does your debt not reduce by £4k?
Debt problems, what debt problems? I'm not in De Thames, I'm in De Nile.
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kallis3

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Post by kallis3 » Sun Nov 15, 2009 9:40 am
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The creditors can put all interest and charges back on, and I imagine a lot of them do, so anything that you have paid across will either be swallowed up by the IP's fees or the creditors charges.
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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MelanieGiles

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Post by MelanieGiles » Sun Nov 15, 2009 10:28 am
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With IP fees now generally at only 15% of realisations, it would be unlikely for your money to have been entirely absorbed by costs. Even if the IVA fails, there should be some monies to repatriate to creditors and therefore the balances should have reduced a little.
Regards, Melanie Giles, Insolvency Practitioner
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