If IVA fails

the_bright_side

I have spent the last 3 months entering into an IVA and the creditors meeting is 2 weeks away. Up until 3 months ago I was still paying of all of the debts at the required amount. I stopped when the IVA process started and have been using the money to buy essentials and the odd treat for my kids as I know if the IVA is successful that it will be a long-time before I have any extra income.

My question is if the IVA doesn’t happen and I have to go BR what will the OR say about me not paying the debts in the last 3 months.

I’m just feeling a bit nervous as my offer is quite low even though my income is above average but my rent and fuel costs are expensive.

Rmeek

Hi the_bright_side.

Your creditors will have to take in to account that you had entered in to an IVA process and so missing payments and incurring charges are part and parcel. If you go BR then they will get nothing, and if they know that this is the best offer you can make it is up to them, but if it is viable they would be silly not to accept it. I hope they do accept it for you. Fingers crossed

the_bright_side

Rmeek, thank you for your reply, its the OR I am worried about really.

and also the fact that the creditor might want an increase to the IVA which I cant afford

dancingfairy

From what I've read on the bankruptcy board the OR won't care that you haven't paid your debts before going bankrupt - many people have to stop paying their debts for months in order to save up the fees for bankruptcy and possibly moving expenses as well.
Frankly you just need to cross your fingers and hope the creditors accept your offer as the best alternative to bankrutpcy - if they don't and you can't afford to offer any more then you will have to go bankrupt. I don't mean to be funny but in a sense it's out of your hands and you can only hope that common sense prevails - there is nothing you can do or say that will change things I don't think - it's just a matter of waiting -

df
p.s bankrupcy isn't that bad either from what I can tell - once you've got to this point it's all going in the right direction - whether it's bankruptcy or an IVA - the debt is being sorted.