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    • tarman
    • By tarman 6th Dec 18, 1:30 PM
    • 6Posts
    • 0Thanks
    IVA or Bankruptcy better for a creditor?
    • #1
    • 6th Dec 18, 1:30 PM
    IVA or Bankruptcy better for a creditor? 6th Dec 18 at 1:30 PM
    Did an investment with an estate agent a few years ago.
    The original amount was 10k and a term of 3 years, with bi-annual returns and the full amount to be returned after the 3 years.

    Long story short. Other party was not honest with things and 2 further years on, no sign of anything being returned.

    Seems like the crook also had similar deals with other people.

    1 of them has chased him, and now the estate agent will enter into an IVA or Bankruptcy.

    But he also had many credit cards debts as well.

    1. If he owes larger amounts to the individuals, can the credit card companies be also included in the IVA creditors list? Their debts are much older, and they have not done much to chase the crook!
    2. The IVA is saying, I may get about 20% back over a stupid 5 years. The bankruptcy would give even less. Of 10 creditors, how many or what % have to accept for the IVA to start?
    3. If I did reject, but the % or no. of people minimum needed accepted, would I then become a creditor in the IVA?
    4. After the IVA is completed, can I still chase for more funds back? OR is that the end of it?
    5. Is the IVA or Bankruptcy or nothing from the crook, the better option for me as a creditor?

    Thank you so much for any advice
Page 1
    • PrettyKittyKat
    • By PrettyKittyKat 6th Dec 18, 4:50 PM
    • 1,130 Posts
    • 1,002 Thanks
    • #2
    • 6th Dec 18, 4:50 PM
    • #2
    • 6th Dec 18, 4:50 PM
    All creditors must be included on the IVA creditors list.
    75% of the voting creditors have to agreed to it to be accepted.
    Once accepted ALL creditors are bound by it regardless of how they voted (even if they rejected or didn't vote at all).
    Once the IVA is completed you MUST write off any remaining debt, therefore no you can not chase for anymore.
    I would have thought that the option that gives you the greatest return is best for you as the creditor, but only you can decide that.
    All creditors receive the same % of payments back. The payments will be sporadic when funds allow, and usually won't start until after the first year in an IVA. So don't expect monthly payments.
    • DorisTrousers
    • By DorisTrousers 7th Dec 18, 9:58 AM
    • 536 Posts
    • 299 Thanks
    • #3
    • 7th Dec 18, 9:58 AM
    • #3
    • 7th Dec 18, 9:58 AM
    It has not been widely publicised for whatever reason, but most of the larger IVA firms have either switched, or are in the process of switching, to monthly distributions to creditors by using "fixed fee" models. This would especially benefit the smaller creditors out there, and of course individuals bound by an IVA.
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