www.iva.co.uk

Hi..can anybody advise on the following wording in an IVA agreement

"The Supervisor shall set aside, and at all times retain, sufficient funds for the purpose of petitioning for my bankruptcy, should this be necessary, and such funds shall rank ahead of the Supervisor's fees"
Does this mean if an IVA fails, the IP has to hand over £495 to the debtor to petition for bankruptcy or does that debtor ask the IP to do it themselves.I could really do with some help on this..it's not my IVA but a friends and she is scared to approach the IP about it !
Thanks for any advice

TheDerbyRam

I think what it means is that funds will be available should any of the creditors wish to petition for your bankruptcy should your IVA fail.

I'm not 100% sure but I think some IVA's have this in the contract incase it fails and br follows. If an IVA fails, the ip can petition br. I'm sure someone will correct me if I'm wrong,
xx

I am sure an expert will be along to advise, but both my husbands IVA and my own state that funds need not be retained for bankruptcy. I presume each firm is different in this respect?

During the course of your IVA, the Supervisor is required to retain sufficient funds, from the monies that you pay in, to petition for your bankruptcy, should the arrangement fail.
If this is in your proposal and it has not yet reached creditors meeting stage, you may well find that there are certain creditors who will modify that clause out and say that funds need not be retained for bankruptcy.
You will not be asked to petition yourself, it would be the responsibility of the Supervisor to do that.