In IVA, considering going Backrupt - advice needed.

monkeylover77

Hello everyone,

I have just registered here and was hoping for some advice!

I have been in an IVA for a little over 2 years - I pay £300 per month into my IVA.

I recently had a phonecall from a company saying I have been 'missold' my IVA - because of my situation I should have been advised Bankruptcy was my best option - this company would charge me £1250 to sort out going Bankrupt - I am not stupid, and am not considering using thier services - but it has prompted me to investigate the option of bankruptcy.

I am 31, currently living with my parents, have my own car [worth approx £750] which I use for work.

My income is approx £1500 per month. It is written into my IVA that my fuel bill is approx £250-£300 per month, due to the distance I travel to work!

Would the Courts accept my request for bankruptcy? I assume I also need to inform the IVA I.P. and get some kind of certificate to say I have stopped my IVA before applying for Bankruptcy?

I want to do this because I want to move out into a flat of my own, but currently cannot afford to - would they accept this as a reason? Also - when listing my debts, would I list the original debts as outlined in my IVA [£29,000] as some would have been repaid to the companies since - or would that be sorted out after my application?

Sorry to ask so many questions - really not sure wht I should do?

Thank you in advance for any of your help!

A confused monkey-lover!!

dubiousone

Hi monkeylover. Someone will come along and answer a lot more knowledgably than me but I'll try and help a bit.

Firstly ring your local county court and ask whether a certificate of failure is needed or not, as about 50% don't require one. However, regarless of the certificate you will probably have to officially fail the IVA. Check your contract, it should state how many missed payments constitutes a failed IVA. You then need to stop payments for that stated period in order to fail the IVA. Don't tell the IVA company you are planning on going BR. I think a lot of people are being mis-sold IVAs. I had a company ring me up telling me I'd been mis-sold and for £1,200 they would do it all for me. I'm glad you are not considering using their services, you don't need to, they're vultures!

Be aware though, if your court needs a certificate your IVA company may delay sendfing one out once you have failed to be awkward. You may need to hassle them, maybe ring the court an tell them you can't seem to get the certificate off the IVA company. They threaten to BR you but they wouldn't rush into it even if you have failed IVA and not paid for several months.

First things first - check how many missed payments constitute a failed IVA. Secondly ring court and ask if certificate needed.

Hope this helps a little.:D

tmcd01

Hi, you need to contact IP to arrange meeting to fail IVA. They will then issue you a certificate of failure that you must present when filling BR. The IP will be able to give you a list of creditors and how much you owe for you to fill in on the forms. This all takes a few weeks so once you have decided to go BR stop payments to IVA (after speaking to IP) and use the money to pay BR fees.
Thats exactly what i did after failing my IVA.

tmcd01

Also, if you can justify it, there is often money in the IVA fund to cover BR fees, ask your IP.

jenni75

Hello,

We were in a IVA for 15months prior to BR and we did not notify the IVA company. We just filled in the details as required in the online forms and among the other reasons we listed in cause of BR we stated that we had being paying £620 per month in to the IVA fund. When we had our annual review we could see on the statement that there was after fees just over £38 available for distribution to creditors. The rest had gone on fees so there was nothing left for them to pay for us to be made bankrupt. I believe that some contracts say that after 3missed payments they will (where there is enough money in the pot) pay for your BR.

I would suggest that you check your paperwork for conditions of failure. We were at no time asked for a certificate of failure, but looking at the other posts you will possibly be required to obtain one. Our IVA company rang us four weeks after we were bankrupted and said they had been notified by the OR of our status, they were fine, did say it would have been polite if we had notified them but not a problem..

I must stress this was just our experience, it may be different for you.

And as for phone calls! We were plagued with letters and phone calls offering to get us out of our IVA during the whole time, and once we were BR we had them again saying they could reverse it. Unbelievable, as dubiousone said they are vultures.

Good luck
Jenni