creditors not met for IVA can u do BR??

get_me_out

Asking for a friend please.

He has started to set up an IVA but his creditors have not had their meeting yet. Plus his wages are less this month and will continue to be so, the IVA company still want an amount based on his last wage as manager.

If the creditors have not met and he has made 1 payment to the IVA company. Can he file BR??

Debt about 24,000 will take him 10 yrs to clear??

excel1

IVA rarely last longer than five years you dont make the full repayment.

AS its a commercial IVA company by the sounds of it then the IVA is probably not in place yet so in theory yes he could change but at £24000 he should be alright in a IVA if they surplus income of about £200 per month, if not then maybe BR should be considered.

get_me_out

Thanks for that, I told him I would ask here. He won't have 200 left after his wage drop. Although he did when he looked into it a couple of months ago.

He rents his house and cars worth about 800.00 so I think he's looking at BR if he can. Has his wife and 4 young children.

deedee_3

He needs to talk to a debt agency pronto. Tell him not to give this fee paying firm any more money. Especially as he has no property to protect an IVA may not be the best option.

Will get you some links from Fermi's sticky at the top of the board.

Advice on bankruptcy.

The court/judge will normally ask whether you have taken professional advice that bankruptcy is in your best interest. If they believe you have not taken proper or sufficient advice then your bankruptcy may be refused. There are many places and organisations that you can get advice from, but the ones that people on this board have found most useful are listed below:

Main recommended sources of help:

• Consumer Credit Counselling Service - Website: CCCS Telephone: 0800 138 1111
• National Debtline - Website: National Debtline Telephone: 0808 808 4000
• Citizens Advice Bureau - Website: Citizens Advice or visit your local CAB centre (find nearest)

Others:

• Business Debtline - Website: Business Debtline Telephone: 0800 197 6026
• Christians Against Poverty
• PayPlan
• TaxAid - Help with tax debts.

For general queries about bankruptcy you can contact:

The Insolvency Service Enquiry Line
Tel: 0845 602 9848
Email: [EMAIL="insolvency.enquiryline@insolvency.gsi.gov.uk"]insolvency.enquiryline@insolvency.gsi.gov.uk[/EMAIL]

(Please be aware that the enquiry line cannot give debt advice or counselling or advise you whether you should go bankrupt. They can only answer general/technical questions on bankruptcy)

Many people find that debt and bankruptcy is the cause or result of a period of great distress and anxiety in their lives. For some this can reach a stage where it is difficult to cope. So I would remind you that The Samaritans are available to help you through your troubles if the emotional side threatens to become overwhelming.

So_Sad_Angel

Hi,

Get your friend to speak to the debt charities ...also if salary is reducing the with 4 children he should be entitled to more benefits as well. Perhaps try CAB as well.

Above all make sure that he gets plenty of advice...my understanding is that IVA`s are rarely the best solution especially if they are recommended by a commercial advisor who will be taking a large comission on the deal.

Be careful & get lots of advice.

deedee_3

Tell him also to check out this link to see if he can get more benefits.

https://www.entitledto.com

draytonled

look in the small print of your IVA paper work. my creditors were !!!!ing about for ages (mbna and hfc ) my fathering law looked at the paperwork. and pointed out to me . As part of the set up charge of the IVA if the creditors Did not come up with the 75% agree then (synergi ) My IVA company would fit all the bills and make me bankrupt . I was made brankrupt in may this year by synergi (the best thing i have done for years)

draytonled

!!!ing = mucking

excel1

I believe i read someone that in less than 10% of debt cases IVAs are the best option so most of the time they are not the right course to follow.