Iva

DJE1

Help please, I have been in an IVA for 18 months, however I am now at an age that I can no longer work & my IVA will soon fail. I have been asked by my family to move abroad & live with them, funded by them. They are also considering putting together a full & final offer to clear my IVA but will not discuss this until I get there, the other alternative is that they will fund my bankruptcy in my absence when I arrive.

Any advice would be greatfuly appreciated

National_Debtline

Hi

As an IVA is a legally binding agreement, while it’s still running you would need to make a F&F offer through your IVA supervisor and have it approved by your creditors in order to satisfy the IVA. Alternatively, once the IVA formally fails you could make F&F offers to your creditors yourself.

If you don’t own any assets bankruptcy, or possibly a debt relief order if you owe under £20,000, might also be viable options and would cost your family less money. A debt relief order only costs £90 to apply. You would still need the IVA to fail before you could apply for another form of insolvency though.

James
@natdebtline

DJE1

Thanks for your reply, how long after missing the payments does it become a failed IVA? In other words, once I stop making payments how long do I have to make a F & F offer?

tigerfeet2006

Some reading for you from the Stepchange website
http://www.stepchange.org/LivingoutsidetheUK.aspx

and National Debtline
https://www.nationaldebtline.org/EW/factsheets/Pages/bankruptcyandforeignissues/bankruptcyabroad.aspx#

National_Debtline

As far as I’m aware the time it takes for an IVA to formally fail can depend on the IVA supervisor. Sometimes this can take months. It would be best to discuss your plans with your IVA supervisor and ask them to fail it as soon as possible and you’ll need them to send you a Certificate of Termination for it to officially end.

The factsheet tigerfeet has linked to makes an important point to consider as not all countries outside of the EU have a reciprocal agreement between their court systems and the UK courts, which means a UK bankruptcy may not necessarily be recognised where you move to anyway. If you aren't moving to an EU country (Denmark is also an exception) you would need to take advice wherever you move to if still considering the bankruptcy option to clarify.

James
@natdebtline

safc88

DJE1 wrote: »

Thanks for your reply, how long after missing the payments does it become a failed IVA? In other words, once I stop making payments how long do I have to make a F & F offer?

Speak to your Supervisor.


Its usually 3 months of arrears that will then constitute a default and your Supervisor will issue you with a notice of Breach which you will have 28 days to rectify.


If you don't rectify (repay the arrears) within those 28 days your Supervisor will call a meeting of creditors to see what they want (usually petition for Bankruptcy).


Your proposals will set out how many months arrears constitute a breach/default.


However, if you wanted to make a f&f offer to your creditors as you cannot afford to repay or circumstances has changed the best thing to do is speak to your Supervisor and explain the situation, they are able to call a meeting of your creditors to vary the IVA and it will then be down to them to decide basically if they will accept the f&f offer