Failing IVA - process/approach

beeteecee

The IVA firm have today asked about their direct debit so I have informed them

"I wanted to confirm I am am no longer going to be able to make payments into my IVA due to the post-IVA debt not being able to be solved with the HMRC.

I feel my only option is to move towards bankruptcy and my IVA failing is part of this."

Does this sense of dread and constant anxiety stop at some point? After bankruptcy is over or once you finally go through with it maybe? Sorry once again for all the questions. 

beeteecee

I thought they'd just say ok but they've come at me with more questions 😬

'We must schedule a meeting of your creditors, to inform them of the situation and your intentions. Creditors will accept that the Iva is failed.

Would you like to proceed with this asap, where we schedule meeting at your request or if you wish, to allow you more time, the Iva can fall into breach with a meeting scheduled from there, this takes more time.'

 

ManyWays

So you can say yes, you want the IVA failed asap, and repeat you will not be making any further payments whatever the creditors say. 

beeteecee

ManyWays said:

So you can say yes, you want the IVA failed asap, and repeat you will not be making any further payments whatever the creditors say. 

Thanks - I am going with that. I think my understanding of how this all worked is a bit messed up! I thought if it failed, they'd petition the bankruptcy but it seems not not sure where I got that from as the only outcome! 

sourcrates

Very rare that happens, usually only if you have a house with lots of equity, and even then its rare.

beeteecee

I fear I'm back in the same old place then. I need to get this all over with and start again.  

ManyWays

yes, you need the IVA failed asap and then you need to go bankrupt. 

beeteecee

ManyWays said:

yes, you need the IVA failed asap and then you need to go bankrupt. 

Thank you. I am hoping this will be underway very soon. Anxious as awaiting my new tenancy agreement but once that's done for 12 months I believe it's time to press the bankruptcy button? 

beeteecee

IVA company taken until now to issue this comment/threat:

"If, within 1 month of the date of this letter, the required payment is not received or a suitable proposal to remedy

the breach has not been provided or adhered to, then in accordance with the terms of your arrangement, I, the

Supervisor may choose to end this arrangement or call a meeting of your creditors, which may result in the

arrangement being terminated and a bankruptcy petition being filed against you."

Considering replying 'please proceed with the bankruptcy petition' I don't have any other way forward...I don't suppose this will make them do it but it might? This process is as drawn out as wise forumers suggested it would be! 

sourcrates

I don`t expect they will go ahead with bankruptcy, but again, just wait and see what happens.