My IVA failed - whats next?

obliki

Hi all,

I have had an IVA since 2006 and paid into it diligently for 18 months.
There was a clause in the IVA that required me to pay half of any overtime back and I was not able to do this at the end of the year.
I asked the IVA company to review my payments and agreement however they did not do this for the next 2 years. They issued a 'default' notice to me a year ago.
I did not pay anything into the IVA for these 2 years and hoped they would file a BR petition against me. They did not.

I contacted them yesterday as it is really stressing me out and they said they had already started proceedings to fail the IVA and there was nothing I could do to save it. They informed me they would have to convene a final meeting with my creditors and ASK THEM if they would like the IVA company to fail the IVA (all the creditors start knocking at your door again) or if they should file a BR petition to make me bankrupt.

I was always of the view that it was a part of the IP's responsibility to file a BR petition against me should the IVA fail? Can anyone set me straight here as the outfit is not the most 'straight up' of businesses.

Either way they are sending me a list of my creditors and I am filling in forms 6.27 and 6.28 as soon as I can.
Hopefully High Court next week, I have no assets, no cards, no house no mortgage and just a tiny bit of sanity left...

thanks

Nick700

Good afternoon,

It really does depend on the IVA company - some IVA proposals state that IVA Supervisor should petition for your bankruptcy if IVA fails while other proposals state that the IVA simply fails and you are then left to deal with your creditors directly.

Either contact National DebtLine or visit your local CAB for free impartial advice if you are unsure about bankruptcy, or if you have decided bankruptcy is the way forward then contact your IP to ask them if they can just simply make you bankrupt without consulting your creditors first. You will save money this way as you will not have to pay to petition for your own bankruptcy.

Nick

tigerfeet2006

It is always best to talk to one of the debt charities before going to court. They can ask if you have taken profesional advice and delay your BR until you have. Also most courts won't grant your BR unless you have proof that your IVA has failed.

If you pop over to theBankruptcy board the guys there can give you lots of help and support through this.

As Nick says not all IVA providers have a provision for making you BR, have a look through your paperwork it should say in there.