IVA to Bankruptcy - Advice Needed please...

DomRidd

Ok so here's the situation...

My Dad is currently in an IVA to repay debts run up on credit cards/loans to assist one of his sons keeping his company afloat through quiet times, on the promise it would all be paid back... It wasn't so my Dad went into an IVA, with the son promising to cover the payments... The son never and my Dad who now is 70+ has the worry of making the payment each month which would normally entail all of his pension being used to cover the payment...

He is a proud man, realises he was stupid to be manipulated and bullied into running such a debt but thought he was doing the right thing for his son...

Is there anyway he can go from his IVA to Bankrupt and how would he go about it? Just to give him some quality of life in his later years instead of what little pension he gets going to pay off what really is his sons debt...

Any help, advice, guidance greatly appreciated.

Thank you

rizla_king

If its the right thing to do then I think you just make an appointment with the court - fill in some forms - and hand over the £700 fees on the day.

debtinfo

Again not saying that he should do it, thats a much bigger question but what he needs to do would be to check that there is no bankruptcy clause in his IVA agreement (which are not as common these days) and he would then need to give notice to the IP to terminate the IVA, once it is terminated and he receives a certificate as such then he can apply for bankruptcy in the usual way.

DomRidd

Not sure if it's the right thing to do, but as the son is moving away it's doubtful he'll get any money from him to cover payment, and I really don't wanna see his pension just about cover it and leave him with nothing putting extra pressure on my mothers finances to cover everything else...

I doubt he will but want to present it as an option.

Thanks

tigerfeet2006

Does he have any property? Is he in rented accommodation?

DomRidd

The mortgage is totally in my mothers name. He has nothing.

tigerfeet2006

Unfortunately if he lives there then he could have accrued a beneficial interest in the property. I suggest he gets in touch with National Debtline for some free impartial advice.