Fast track IVA?

baglady

I saw an IP this week. I have been bankrupt for about 1 month. I was made bankrupt by a creditor for closed bank account with £6,000 overdraft. Total money in bankrupt pot with all creditors is about £20,000. I am single with no children. I am self employed and my only asset is my property. IP says OR would look to sell property within a few months.


Family member paid £7,000 (incl solicitor fees) to petitioning creditor but IP will get money back to put in the IVA pot. Realise that this payment should not have been made but family were trying to pay off debts to annul bankruptcy.


The family member is going to help with my payments. The IP has suggested an IVA into which I would pay £700 for first 2 months and increase to £1,000 after this. Suggested I rent out room to help bring in more income. He's looking at a me having the IVA for 2 years.

I'm concerned about the amount that has been suggested we pay. I don't want family member to be overstretched financially. I'm looking for extra work so I can contribute a greater share towards the IVA.





Is paying an IVA over 2 years a fast track IVA?
I thought that IVA's were usually 5 years.


Would creditors reject the IVA if it was for 5 years?

DorisTrousers

Hi,

See your previous thread https://forums.moneysavingexpert.com/discussion/5336429

A fast track IVA doesn't exist anymore, and as suggested in your previous thread, creditors are not likely to be keen on a 5 year IVA. The terms of an IVA can be almost anything, and it is down to all parties to agree upon it.

That said, you could ask your chosen IP if he or she would consider 2 and a half or even 3 years. This is very much a last chance saloon if you do not want to run the risk of losing the property, and even then there is no guarantee that it will be accepted, but usually they will produce a better return for creditors than the BR and as such can work very well for both debtor and creditor alike.

baglady

DorisTrousers wrote: »

Hi,

See your previous thread https://forums.moneysavingexpert.com/discussion/5336429

A fast track IVA doesn't exist anymore, and as suggested in your previous thread, creditors are not likely to be keen on a 5 year IVA. The terms of an IVA can be almost anything, and it is down to all parties to agree upon it.

That said, you could ask your chosen IP if he or she would consider 2 and a half or even 3 years. This is very much a last chance saloon if you do not want to run the risk of losing the property, and even then there is no guarantee that it will be accepted, but usually they will produce a better return for creditors than the BR and as such can work very well for both debtor and creditor alike.

Thanks DorisTrousers for the reply. I had previously printed off a document about fast track IVA's so thought this was what the IP was suggesting.


Yes what you say is right. After posting this question I called the IP to ask if 3 years would be considered. He said that the creditors might not agree to this as they would get money quicker with bankruptcy but if I instructed him to request this then he would. I'm just worried in case there is a time during the 2 years that myself and family member struggle to make the full monthly payment.

DorisTrousers

You are right to be as cautious as you can. Any increase in timescale could lead to a reduction in monthly payment, which, as you are reliant on 3rd party funds, is perfectly acceptable. The IP is also correct inasmuch as the creditors may take a different view, but then again they may not. If they do look to vary the terms of any deal then at least you will have tried, rather than not.

Good luck.