If my IVA company make me bankrupt who pays the fees ?

Get expert opinion. This is the place for new questions to be posted.
5 posts Page 1 of 1
 
 

Lorraine.cl

User avatar
Posts: 9
Joined: Sat Jan 19, 2013 3:05 pm

Post by Lorraine.cl » Tue Jan 29, 2013 12:54 pm
If my IVA company make me bankrupt who pays the fees
 
 

Foggy

User avatar
Posts: 33395
Joined: Fri Dec 17, 2010 11:14 am
Location: United Kingdom

Post by Foggy » Tue Jan 29, 2013 1:13 pm
I think the general concensus is that they pay the fee from the IVA pot, if they take the initiative.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
 
 

Michael Peoples

User avatar
Industry Expert
Posts: 15189
Joined: Mon Nov 03, 2008 12:36 pm
Location:

Post by Michael Peoples » Tue Jan 29, 2013 1:14 pm
If there is not enough money in the pot the IP can ask creditors to fund the bankruptcy or just fail the IVA and let creditors pursue as normal.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

ClareSilver

User avatar
Posts: 597
Joined: Tue Jan 15, 2013 2:15 pm
Location: United Kingdom

Post by ClareSilver » Tue Jan 29, 2013 1:23 pm
Depends whether or not there is a modification in your proposal which states 'funds must be retained for the debtor's bankruptcy'.
 
 

MelanieGiles

User avatar
Industry Expert
Posts: 47612
Joined: Tue Jan 09, 2007 10:42 am
Location:

Post by MelanieGiles » Tue Jan 29, 2013 10:14 pm
If you are talking about the fees for running the bankruptcy, it is not usual for these to be paid from the IVA funds, as these are generally held in trust for the IVA creditors and thus ringfences from the bankruptcy proceedings.

The costs of bankruptcy are generally indemnified from the estate assets. If there are no assets, these are generally funded from the public purse if the OR is appointed, or by the IP personally if they have been unfortunate to be appointed over an asset-less case. This seems to happening more and more now - I am continually writing time off in my bankruptcy portfolio which cannot be recovered.
Regards, Melanie Giles, Insolvency Practitioner
5 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”