Iva after bankruptcy

paul22_2

Hi all.. i started a iva in june 2005 and it started to go bad a year later in june 2006.. i was paying £290 a month but i seriously under budgeted myself:mad: after my yearly review i had a payrise of £160 a month and thought it would help me:D until they wanted £138 of it.. i phoned and explained that i was struggling and thats its killing me but to no eveil they just told me thats what i have to pay and thats it!! i told them there and then iwas gonna petition for my own bankruptcy as i could not carry on with the payments.. i sent a letter to them informing them of what im about to do but i heard nothing back from them until january this year when the sent me my notice of breach.. i was not prepared to wait any longer and was declared bankrupt this week.. i have no assets apart from a car (not very valuable):o been allowed to keep my basic bank account which i opened at start of iva cos the or was not intrested in it and on condition the bank was ok with it and they was fine:D the question that is bugging me now is that now im bankrupt i paid in abourt £3000 to my iva what happens to that money? and will the iva people seek fees off me for because i ended the iva myself and petitioned for my own bankruotcy? i dread to think after getting credit and loan people off my back that the iva people will want me to pay them?

if anyone has any advice it would be much appreciated:j

stressfromdebt

Hi,

im in the same boat has yourself, i started a IVA back in August last year again. I was earning commission on top of my salary and they didnt take this into consideration when i applied. I then moved to a different dept and didnt have the commission to fall back on. I missed a few payments and so the repayments have gone so high i cannot afford to do it anymore so i have now decided i must go bankrupt.

Please can you advise me.. Do i inform them straight away?
How long does it take after i have filled in the forms to be seen by the courts?
Where do i seek more info to get this started.

im so confused and dont know where to turn.

shameless-about-money

When in an IVA you are supposed to inform your IP first. See what they say.

They may take a vote from your creditors to make you bankrupt. They don't like doing this because it costs them a lot of money. And it can drag on for 18 months and more!

If you want to go bankrupt you can, without anybody's permission. You simply complete the SoA forms, present them at Court in the usual way - make an appointment - pay the fees.

Bankruptcy done.

There would be no fee overspill from your IVA, it would be dealt with in the bankruptcy.

paul22_2

thanks for the reply:D i have gone bankcrupt now.. done on the 20/3/2007:j i informed my iva company and wrote i letter to the explaining i was petitioning myself

glad there are no fees to pay after:D they still got money i payed into it for the year just over 3k, maybe the OR takes that money

shameless-about-money

The money paid into the IVA go to your creditors. Any money that the OR realises from you in an IPA will go to the IVA first - that is written into the IVA t&C's

scootw1

shameless-about-money wrote: »

The money paid into the IVA go to your creditors. Any money that the OR realises from you in an IPA will go to the IVA first - that is written into the IVA t&C's

Not so in all cases. the money I paid into mine is the six months I paid it went straight to the IP with nothing to the creditors. A year down the line after I started the IVA I was in teh same boat as I was in before but with £4000 less. Gone br now so that's over with but an expensive lesson to learn

shameless-about-money

scootw1 wrote: »

Not so in all cases. the money I paid into mine is the six months I paid it went straight to the IP with nothing to the creditors. A year down the line after I started the IVA I was in teh same boat as I was in before but with £4000 less. Gone br now so that's over with but an expensive lesson to learn

Sorry! I meant that the money goes to the IVA fund - I had missed out the part about the IVA Fund including the IP fees. I did suspect that the IP would take their chunk out first - how unusual!

NekoZombie

scootw1 wrote: »

Not so in all cases. the money I paid into mine is the six months I paid it went straight to the IP with nothing to the creditors. A year down the line after I started the IVA I was in teh same boat as I was in before but with £4000 less. Gone br now so that's over with but an expensive lesson to learn

So Scootw1, what happened with your IVA? Did it fail cause money was too tight too?

Neko

scootw1

NekoZombie wrote: »

So Scootw1, what happened with your IVA? Did it fail cause money was too tight too?

Neko

Yep, that it did. Failed in October, br in february. best move I ever made I would say. Couldn't possibly have carried on with IVA for 5 years

NekoZombie

Yes, thats what I was worried about - 5 years seems like a lifetime of no money and depedning on someone else to help out with the extras (IMHO). Did they make you BR or did you have to petition it yourself?

scootw1

NekoZombie wrote: »

Yes, thats what I was worried about - 5 years seems like a lifetime of no money and depedning on someone else to help out with the extras (IMHO). Did they make you BR or did you have to petition it yourself?

They refused to petition so I had to do it myself. No surprise really, why would they pay if I could?