Page 1 of 1
Posted: Tue Apr 15, 2008 10:56 pm
by jon_b
What happens if my iva fails after it has been approved. Will the IP make me bankrupt and will I own any fees to the Insolvency practioner
Posted: Tue Apr 15, 2008 11:03 pm
by Lisa2009
Usually if an IVA fails, you will just be back to where you started from with creditors chasing for payments and still adding on interest.
A creditor can petition for your bankruptcy but i believe its not often they do as they would much rather see if they can get the money from you first.
Posted: Tue Apr 15, 2008 11:29 pm
by ianmillington
It really does depend what the proposal says. Also, if you are a "Consumer" debtor it's likely that the banks will want to be let loose so they can chase you again rather than have you go bankrupt.
Ian
Posted: Tue Apr 15, 2008 11:35 pm
by MelanieGiles
And yes you will still owe fees to the insolvency practitioner, but in reality these are rarely chased up. It is getting less and less common for IPs to petition for bankruptcy upon failure now, but as Ian says this does depend upon the terms of your IVA which may call for a creditors meeting to be held to gauge creditors views.