I've been in an IVA since April 2007 and I think it's about to fail. In that time I've been made redundant twice, the second time which brought about homelessness, so I'm just getting back on my feet having started a new job. The payments were supposed to fire back up from next month, but because I was sick with the flu for a week the company don't pay whilst you are in probation which means the loss of a week's pay. It's being put to the creditors, and I think they'll fail it because of the amount of payment breaks due to redundancy. I've been desperately trying to catch up with other payments that I couldn't make due to redudancy in April and no work for four months, funding the first month of work etc...
I've already offered to pay them out from redundancy monies, which they refused [:(!]. What happens if an IVA fails... How likely is it that they'll petition for bankruptcy (I have no assets whatsoever, so they'd get nothing). What are the implications? I've tried asking the IP (Grant Thornton) and they're just not being very helpful about information.
Its highly unlikely they will petition for Bankruptcy.
If anything, the IVA will simply fail and you will be back to where you were before with creditors chasing and free to start adding interest again
The stupid thing is that they would have had the majority of their money had they just accepted the payment offer last year... Alliance and Leicester refused it. Which is a bit ironic seeing as it was their shifty actings which caused the problem in the first place and they were owed such a tiny amount it was ridiculous. A bit cheeky to take the moral high ground...
You could always consider declaring yourself Bankrupt if the IVA fails. You will need to wait for your certificate of non compliance and take it along to your local court with a fee of £525 (i think it is now).
The forms can be filled in online on the insolvency service website.
Just a though to draw a line under the whole thing once and for all.
Thanks Yeah, I'm kind of at the point where I'd just like it to all go away. I somehow see it rolling on for years and years, if I keep getting made redundant at the rate I seem to be...It would almost be a relief. Obviously I'd rather have paid the money back, but it's in such a mess...
Your creditors are unlikely to want to see you bankrupt if you are now about to start paying them again. But if they do, no-one can say that you have not tried - as it was not your fault that you have suffered two redundancies in such a short period of time.
Sorry to hear about your problems Lizzie and I hope you get them all sorted out.
You have tried your best and that's all anyone can ask for.
Just to correct the court fees for BR (sorry Lisa!) it's £510.
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. http://kallis3.blogs.iva.co.uk
Yeah, I'm kind of at the point where I'd just like it to all go away. I somehow see it rolling on for years and years, if I keep getting made redundant at the rate I seem to be...It would almost be a relief. Obviously I'd rather have paid the money back, but it's in such a mess...
