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hughie278

Ok guys, some advice if poss please...

Im in an IVA, i owe the bank money seperatly and they have just told me they wont help me pay it back and they want the card back, and im also now unemployed. My car has also just broken down with a snapped cam belt (yes, ouch).

Ive been dodging bankruptcy for a while now. Ive read everything ive found on the matter, and i know its my only choice now. Im already way in arrears on my IVA anyway.

The question is, as i cannot afford to pay the IVA and the bankruptcy fee, will one of my creditors do this for me? Can i ask them too? This is my final lifeline. I cant take much more of this, the next step will be the a secure hospital i think

tigerfeet2006

I am afraid it is highly unlikely that any of your creditors will make you BR as there is nothing in it for them,

You need to phone one of the debt agencies in my signature and get some professional advice.

If you need to get the money for BR then you can stop paying the IVA and save the money to go BR.

hughie278

Im not paying towards the IVA anyway as im now unemployed. Im not earning anything at all.

I havent got a way to raise that bankruptcy money. What situations do the creditors force bankruptcy then?

Ill get on to one of them phone numbers. Thankyou

betterlatethannever

Very few situations Hughie.

For a creditor to make you BR they have to pay the court and OR fees, and i think they have to pay solicitors fees too. The total amount for them can be 1.5k. If you have no assetts then they won't get anything back for there trouble.

That said, HMRC and American express do make people BR.

I'm afraid its a case of getting some advice (as Tiger said) then doing anything you can to get the money together.
Do you have a family member/good friend who could help you out at all?

As your on benefits you'll be exempt form paying the court fee, though will have to find the Ors fee of £345.

fermi

Usually it is only HMRC and for some reason American Express who will make you bankrupt. Or if you have a private creditor who has a grudge against you and doesn't mind wasting the money for the fees.

What does your IVA agreement say will happen when it fails? Some agreements provide for the IP to retains funds to petition for your BR in case of failure, but many of the big IVA factories don't bother with this.

tiger5000

fermi wrote: »

Or if you have a private creditor who has a grudge against you and doesn't mind wasting the money for the fees.

Sounds familiar! Thats exactly what happened to me!

hughie278

I spoke to my IVA people a few months back about going bankrupt because i was falling behind on my payments, due to bad weather mainly stopping me from working. They basically told me i had to pay the BR fees and the money ive paid into the IVA for the last two years will go to my creditors (after their fees of course). On this occasion work picked up, and i started paying into the IVA again with an extended payment each month to make up the arrears.

Now i have no work at all until i find another job. Im not on any benifits so ill have to pay all the BR costs. Also my bank will now be demanding i repay their money, as they want the card back, so they will be going into the BR.

Ive sort of burned out everyone who can loan me money by getting them to help with the IVA payments. Ill have to have a good old think of where to raise 400 odd quid before i get the hassle of a failed IVA and baliffs at me door. Thanks again.

fermi

tiger5000 wrote: »

Sounds familiar! Thats exactly what happened to me!

You and several others here. It's ironic, but it's often done as spite, and then turns out to be doing the person a favour in the long run.

fast_track

Check your IVA agreement. I would expect the Insolvency Practitioner have already charged you for your bankruptcy fee when you first took the IVA out. I think it might be their duty to bankrupt you if you are now missing payments. It should all be in the paperwork

oxheys

My brother is about to sign on the dotted line for an IVA. He's done it through a company who specialise in this but I can't help thinking that the costs are steep. His original debt was £22k. He had this reduced to around £12k but then the IVA companies charges take the figure back up to £20k.
Is this right or is he paying over the odds?
Others I have spoken to said that their costs were not this high.
From memory the costs were:
Paperwork Preparation £1175, Nominee £1175, Supervisor £5575.

Any advice or comments would be appreciated. Thanks in advance.

NekoZombie

oxheys wrote: »

My brother is about to sign on the dotted line for an IVA. He's done it through a company who specialise in this but I can't help thinking that the costs are steep. His original debt was £22k. He had this reduced to around £12k but then the IVA companies charges take the figure back up to £20k.
Is this right or is he paying over the odds?
Others I have spoken to said that their costs were not this high.
From memory the costs were:
Paperwork Preparation £1175, Nominee £1175, Supervisor £5575.

Any advice or comments would be appreciated. Thanks in advance.

In all likelihood you've misunderstood the paperwork - the fees come out of the total monies collected - they are not levied separately (a common misconception). It means the creditor will only get approximately 5k back.