IVA Failure

Queenb_2

Hey Everyone

Well got my certificate of failure today - seems I have paid £11,860.57 and Payplan have kept half of it and are saying that there is insufficient funds available following the part payment of the Nominees fees and the supervisors disbursements with which to present a petition for bankruptcy.

Payplan have also noted that I am no longer protected from my creditors and they are now free to take what action they consider appropriate to recover the debt owned to them.

I am now very very scared to think that my original creditors have sold the debt to a company who may start letters or phone calls or turn up at my door. I understand that they wont petition for my BR as that will cos them so I have no idea what they may do for their money.

Can anyone advise who may have been through this ? I am now not paying the Payplan fee so can put that towards the BR I feel is required.

What would happen if I didnt do anything?

Thanks in advance

trudij

I cant answer any of your questions, but wanted to give you a cyber hug, cos i think you sound like you could use one - and maybe have a look on the bankruptsy board for an answer?? You cant be the only person that this has happened, and horrible though it seems again at the moment, Im sure it can be sorted out.

good luck, and keep us posted !!

xx

Queenb_2

Thanks Trudij appreciate it x

emos4607

Hi QueenB

Well, at least your not left waiting to see what/when/if something comes your door.

I went through the "what ifs" with an advisor with CCSVA today and she said that should an IVA fail then it is not in creditors interest to push for B/R as they will lose any chance of money. She said that it might be possible to re-negotiate a further IVA or enter into a DMP (hopefully this is sound advice?)

Have you taken any advice from a non profit organisation about your situation?, you might be doing your noggin in fearing all sorts of things when there may be a solution out there?..... can't hurt to talk it through!

Queenb_2

Hi Emos

Thanks for your message, I have contacted nationaldebtline via email and awaiting a response - cant call them as at work all day or travelling home after work. will see what they advise.

I am worried that someone will turn up at my door demanding money or even worse contact me through work.

I thought that another "reputable" company wouldnt take me on another IVA as I had failed with Payplan so thats why I am thinking BR the only answer.

Charco_2

Not necessarily.

If i'm placing you correctly, your IVA failed because you hadn't disclosed all your creditors/used a card after your IVA started!? Is this you?

Another IVA company may be happy to take on your case although the creditors will probably be difficult about it - doesn't mean it wouldn't be successful though!
However, Bankruptcy might be your best solution so you should keep an open mind about it. You could certainly save the £510 in the next month or two by not paying your creditors - but find out if it's really what you wanted to do first!

Matt1982

I was in an IVA and could no longer afford it (and also didnt feel right how much the IP were making on this - I went into IVA to pay as much to creditors as I could).

Anyway so I couldnt afford no more and the IVA company have petitioned for my BKO, which has now gone ahead.

I am alot happy now gone BKO, thought early days

Good luck

Queenb_2

Well I live in a council flat my car is 12 years old and I dont own anything substantial - basics bed, tv (old) sofa and cooker and fridgefreezer.

I work in housing as a Housing Officer I dont deal with money as in handling it but I may have to attend court in cases of evictions and I have meetings with social service departments.

I think I will have the money together in about 3-4 months for BR as my old car has gear problems and I have no idea what thats gonna cost but i need car for my job.

In the interim I am going to write to my creditors and offer a monthly token payment and say I am experiencing financial problems but should I tell them I am going for BR? And also when listing the debts is it the original debt I owe them or is it minus the payments they have received from Payplan?

skintflint103

just remember if you are going bankrupt you may not pay one creditor in preference to another i.e. if you pay 1 5% of debt they all have to have it. It takes months for a creditor to do something in court. They have to pay big fees up front for which they get little return. If you are on working tax credits you will get a lower court fee so try that too. Write to all your creditors with your intentions. If they bother you they are wasting their time. The other thing is the official receiver will see that you are making payment and will probably want them continued for 3 years so be careful, you look like you should qualify for nil payment order.

emos4607

Hi again .... apparently you DO have to attend your local court for B/R and cannot opt to go elsewhere. The court in the town i live does not do B/R and it is heard in the county town about 15 miles away, which is slightly easier although the judges all sit on the same circuit so i may still bump into one that i see professionally. At least the court staff won't recognise me.

Good Luck with it all

skintflint103

In reality unless this is a complicated or large case or if there is some irregularity, you will not see a judge. You have to go to the nearest County court that has a bankruptcy section. You will only see a clerk in an office, they will check the paper work ask you to sign it. Then you will have to swear (attest) to it's truth. after that you pay your dosh in cash and go to the court cafe and read paper. Eventualy the clerk will come and find you. someimes the judge may ask a question through the clerk, sometimes the judge will invite you to chambers to ask a few questions ,especially 'do you understand the implications' If its a small (30k or less) you'll never see a judge. most courts will take an appointment often befor 9 to do the petition but expect a 2hr wait.