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| jojopotato |
Posted - 30 January 2009 : 20:14:34
Hi, I am in an iva with my hubby - have been for 2 and a half years - and it is more than likely going to fail in March. I know that when it does I will begin to be harrassed by creditors again and that as we cannot afford to pay them anything they will probably take court action. I just wondered what form this will take and what is likely to happen? I think it would help when it starts to have an idea of what may happen! |
| 3 L A T E S T R E P L I E S (Newest First) |
| go_4_broke |
Posted - 31 January 2009 : 12:03:57
Hi Jo,
One of the big disadvantages of IVAs is that once set up they are not very flexible, as you are unfortunately discovering.
Another normally is that in setting up the IVA you would have had to make full disclosure of your financial position including details of any assets.
However in your case this works to your advantage because they will know you have no assets and are therefore unlikely to make you bankrupt as it costs them and they won't get a return.
If they don't, as John says above they will eventually resume some sort of collection activity but it will probably take them quite a while to wake up and start doing this. Even so I think it is unlikely they would go for CCJ's straight away.
It's a good general principle of debt that you should only pay back what you can afford, so they may be mollified by whatever offer you can make them, even if only token payments.
If they do take a CCJ, you can also plead a case with the Court to offer repayments at a level you can afford, so you could have several opportunities to put your side of the story.
Don't even think about Bailiffs at this point - thats very far away and if you work with the system it will never get to that point.
Most people who get Bailiffed do so because they neglect to deal with important bits of paper.
Best Regards, Simon
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| jojopotato |
Posted - 30 January 2009 : 21:22:00
Thanks for your reply John. I am planning on saving up for bankruptcy, but it is going to take up to a year depending on our circumstances! We don't have a provision in our iva for bankruptcy and I have written to our IP to inform them that we won't be able to carry on paying after our authorised 3 month payment break - still waiting to hear from them though as to what to do next!
What I'm interested in is do the creditors go for CCJ's first and what happens if you can't afford to pay anything? Will they then apply to send the bailliff's in and how long does this take?
We have no assets and we rent our house, we have also gone from a joint income of 2,600 pm to about 900pm so we have no spare funds after rent, bills food etc! At the moment it does not look like this is going to change in the near future! |
| John |
Posted - 30 January 2009 : 20:45:58
Hi
as you have been in the IVA for some time it may be the case that the creditors, on being informed the IVA has failed, instruct the IP to petition for your bankruptcy. You will need to have missed at least 3 months payments before this will happen.
Therefore depending on your IVA monthly payment amount, you could choose to take control, stop paying and set aside what monies you can to enable you to declare bankruptcy yourselves.
If the IP is not instructed in this way it could still be a few months before you hear anything giving you further opportunity to raise the bankruptcy fees. But yes you're right the harrassment will inevitably start sooner or later if neither party petitions the court. |
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