Failed IVA

peterparker12

Hi,
I have recently been advised due to a loss of a job that my IVA will be be subject to a meeting of creditors. I feel now bankruptcy is the best option but I'm just wondering how long it would take to save for the fee? Or how long after the IVA is terminated that the creditors will come asking for money?

fatbelly

I would take one stage at a time - could the IVA be marked complete based on existing payments?

If it is terminated, one option would be for the IP to petition for your bankruptcy. It doesn't happen alot but it does happen.

If you do do it yourself the fee is £680

The creditors might come asking for money but what can they do? You would just be going from one form of insoolvency to another.

Galloglass

IVA's fail all the time. Key questions are a) do you have any assets and b) how much do you owe?

peterparker12

Thanks. How long after the IVA termination can I expect ballifss at the door? I need a couple of months (or maybe 4?) to save the £680 and would rather don't be harassed in the meantime

MalMonroe

Did you use one of the debt help agencies to get the IVA? If not, you could contact one now. And will it really be as bad as bankruptcy, or do you think you could be considered for a DRO, which covers a lower amount of debt but is cheaper to get? 

Do consider contacting either Citizens Advice or StepChange (who helped me with my DRO) and have a chat about your options. Both free phone calls, nothing to lose. My advice is to try not to panic. If you can just talk things through with an adviser, you may well be able to sort something out which will keep the bailiffs and harassers away. 

The debt help advisers really know their stuff and I'm sorry if I'm preaching to the converted but they really can and do help. Without judgement, which is always a good thing. You don't have to take their advice, of course but it's there if you want it.

https://www.citizensadvice.org.uk/
https://www.stepchange.org/

sourcrates

peterparker12 said:

Thanks. How long after the IVA termination can I expect ballifss at the door? I need a couple of months (or maybe 4?) to save the £680 and would rather don't be harassed in the meantime

Whoa, slow down, it can take anywhere up to a year for an IVA account to be wound up, then normally the debts just get chased again as before, your creditors can make you bankrupt, but only if you have significant assets, otherwise what is the point ?

Bailiffs can only attend once a county court judgement has been granted, and then only if you haven`t paid anything.

As you appear to be contemplating bankrupcy already, i`d say you have no assets to speak of, wait and see how it pans out first.

It would help to know what your debts were, how long you`ve paid, and how much your payment was.

fatbelly

peterparker12 said:

Thanks. How long after the IVA termination can I expect ballifss at the door? I need a couple of months (or maybe 4?) to save the £680 and would rather don't be harassed in the meantime

The most likely answer is never.

As Sourcrates says, creditors would have to pay to get a county court judgement, you ignore what the court orders you to pay, then the creditor has to pay more to get it enforced. Against someone who is insolvent with no assets? It's not going to  happen.

If the IVA isn't marked complete on existing payments, and they don't apply for your bankruptcy themselves, then you just sit back and see what happens. You will find that the companies you owed money to going into the IVA are not the companies you now owe money to as the debts will have been sold on.

I'd expect it to take 12 months to settle down