| T O P I C R E V I E W |
| jellyman |
Posted - 29 March 2008 : 19:47:23
Hi,
I'm hoping someone can give some guidance to the following.
I currently Have an IVA which I have been struggling to pay for many months.
After weighing things up I have decided to go bankrupt, I have wrote to my supervisor of my IVA to ask them to put me though bankruptcy. I received a letter with the following statement 'Unfortunately there are insufficient funds in your account for me to petition for you bankruptcy due to the lack of contributions paid to date. Please note you can either file your own petition at your local County Court or I can fail your IVA and your creditors can file for bankruptcy on your behalf.'
I am hoping there is someone who has had a similar experience, I need some advice - what are the pros and cons of the offers made by my IVA company??
Will I get the same outcome if I go it alone or if my creditors file for my bankruptcy will they have more control over my income and expenditure?
Thanks
John
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| 15 L A T E S T R E P L I E S (Newest First) |
| jellyman |
Posted - 05 April 2008 : 14:57:05
Hello,
I only found out about the modifications to the IVA yesterday when they told me.
When I was going though the early stages of the Iva I would have signed anything, (I'm not very good with paperwork).
Thanks for trying to help Melanie, and sorry for wasting your time on this.
Also I would like to say thank you to Skippy for her post, I have just read your blog and found it very informative. To reed about someone else going thought the same thing as myself is very helpful.
Thanks again
John |
| melanie_giles |
Posted - 04 April 2008 : 23:45:55
OK - if I had known that there were creditor modifications I would not have wasted your time on this thread. They are right and you will need to fund your own bankruptcy costs if that is the way you decide to proceed. |
| jellyman |
Posted - 04 April 2008 : 13:37:57
Hello,
I have tried the suggestions to make my supervisor responsible but they have said ‘they are not responsible to retain funds for bankruptcy’. I had forgotten about modifications to the agreement that I signed.
In the terms it says:
1.11 Funds need not be retained for the petition of the debtor’s bankruptcy.
1.12 Should contributions become 3 months in arrears, not necessarily consecutively, or should they fall below the specified level, this shall be a breach of the arrangement and the Supervisor shall immediately arrange a meeting of creditors for the purpose of deciding if and how the arrangement should proceed.
Could anyone help I feel at a loss now.
Thanks
John
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| melanie_giles |
Posted - 04 April 2008 : 01:41:49
They should not have paid creditors without providing a bankruptcy fighting fund - so I suggest you be bullish about this and demand at least sufficient funding from them to pay for a debtor's petition. You have a strong case here - so fight on. |
| Skippy |
Posted - 03 April 2008 : 16:30:41
Good luck Jellyman. I went BR a year ago after my IVA failed and I had to fund the BR application myself as I had made insufficient payments to allow my supervisor to do it.
Regarding the IPA, I found that the OR was a lot more generous in my allowance than when I was in my IVA. I am paying less than half of what I was.
Where there's life there's hope! |
| jellyman |
Posted - 03 April 2008 : 14:19:00
Hello,
I have just been sent via email an up to date receipts and payments account here is what they have said:
ASSET REALISATIONS
16,980.00 Debtor Contributions 5,182.00
Bank Interest Net of Tax 12.14
Overtime & Bonus's 244.00
Total 5,438.14
COST OF REALISATIONS
Specific Bond 19.00
(2,500.00) Nominee Fee 2,500.00
(4,500.00) Supervisor’s Fees NIL
(185.00) Office Holders Expenses NIL
DTI FEES 15.00
(1,138.00) VAT Irrecoverable 437.47
(2,971.47)
UNSECURED CREDITORS
(36,442.00) Unsecured Non-Preferential Creditors 2,047.99
(2,047.99)
(27,785.00) 418.68
REPRESENTED BY
Current Account 418.68
Hopefully you can understand this. Basically they are saying there is only £418.68 left and they need over 1,300.00 to proceed with bankruptcy.
Regards John
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| melanie_giles |
Posted - 02 April 2008 : 23:25:59
As I thought - the clause says that the requirement to retain funds to petition for your bankruptcy takes priority over the Supervisor's own fees.
You have paid in £4,859 and the nominee's fees are £2,938 (including VAT) which leaves £1,921 for bankruptcy - maybe slightly lower as they will have paid for bordereau and registration as well.
You should now ask them for a detailed receipts and payments account to see how your money has been spent. I would put money on it that they have drawn some supervisory fees! |
| jellyman |
Posted - 02 April 2008 : 22:41:29
Hello,
I have just been e-mailed a copy of my original proposal by my ip.
This is what is in the terms.
12.7
In the event that the amount I have paid into the Voluntary Arrangement is greater than the total of
(a) The Nominee’s fee and
(b) Any costs incurred by my Nominee or Supervisor,
the Supervisor shall arrange for a bankruptcy petition to be issued against me should I be in default of any obligation under my proposal for any reason whatsoever. The Supervisor will retain sufficient funds to petition for my bankruptcy and such funds are to take priority over the Supervisor’s fees.
12.8
In the event that insufficient funds to cover the Nominee’s fee and costs of the costs incurred by my Nominee or Supervisor have been received at a time when the Supervisor would otherwise wish to petition for my bankruptcy, she shall advise the creditors of this, and shall issue a Certificate of Non-Compliance.
It looks like if they say there is 'insufficient funds' they can get out of paying for the bankruptcy.
Can anyone clarify this?
Thanks John |
| melanie_giles |
Posted - 31 March 2008 : 23:11:56
Get the IP to send you copies of the papers as you should not just accept what they are telling you. It may well be that they have drawn fees they are not entitled to, instead of holding back money to pay for your bankruptcy. |
| jellyman |
Posted - 31 March 2008 : 14:28:44
Hi,
I have contacted my ip again and they still maintain that there are insignificant funds available for them to make me bankrupt. I can’t find the original terms I signed so I can’t check if they are responsible.
So it looks like its back to the same question, is it best for me to make myself bankrupt or should I let my creditors make me bankrupt?
Thanks John
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| melanie_giles |
Posted - 30 March 2008 : 22:19:15
Hmm - I think you need to check the terms of that agreement again, because your IP may be responsible for paying for the cost of bankruptcy. |
| jellyman |
Posted - 30 March 2008 : 22:01:52
Hi,
I have a single iva.
thanks
John |
| Reviva UK |
Posted - 30 March 2008 : 21:02:31
Hi jellyman
The Income Payment Agreement is an opportunity to contributw towards your debts ( and the costs of administering your bankruptcy)while you are in bankruptcy.
It is usual for contributions to start once you have a disposable income of 90 per month or more. A percentage of this disposable income is deducted and this contribution starts at 50% ( it increases if your disposable income increases).
From the figures you demonstrate it is highly unlikely that you would be subject to one.
Also from your job and asset overiew you will be fine ( please double check your emplyment contract ).
Something else to keep in mind is that during the financial year - assuming you go Br after 6th April - your tax code will change to an NT ( NO TAX ) tax code. Your tax will not be deducted as source but rather paid directly to you and you will need to forward this sum to the official receivers agent.
melanie has a point regarding the supervisors responsibility so hopefully you can answer this and M can assist further.
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
| melanie_giles |
Posted - 30 March 2008 : 20:51:35
Was it a single or a "joint" IVA? |
| jellyman |
Posted - 30 March 2008 : 19:19:40
Hi Melanie,
Thanks for your speedy reply.
In answer to your questions:-
The nominee’s fee was £2,500.
Total paid so far is £4,859.
Total unsecured debt as at 31st March 08 - £34,829.
Looking forward to hearing your comments – Jellyman.
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