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modensane
Junior Member
United Kingdom
214 Posts |
 Posted - 29 May 2008 : 19:12:58
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You apply for an agreed settlement with a creditor and it is refused.
You enter into an IVA and the repayment is set high.
You fail to keep up repayments and the IVA fails.
The IP retains virtually all the money as fees - that is money you have paid over months or years.
You come back to square one, having lost hundreds, maybe, thousands of Pounds.Money you could have paid to creditors.
The creditors then come back after you and you have no option but to consider BR.
You approach a BR agency and they want a large fee upfront.
You opt to declare yourself BR and you can hardly afford the court fee.
Can somebody please explain to me how all this plays up before the OR. |
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m and v
Average Member
United Kingdom
760 Posts |
Posted - 29 May 2008 : 19:26:35
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hi modensane
I made sure the OR knew exactly haow my IVA had failed, and how I had made to lump sum offers that were declined!!
I too paid in just enough to cover my IPs fees - the creditors saw not a penny!!
Vicki x |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 30 May 2008 : 08:39:31
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Hi Modensane,
Unfortunately this is a common situation and has been the reason behind the creditors and banks trying to reduce what the IP will receive in an IVA, however this will not stop the fact that if one fails the IP will take their agreed fee from what has been paid.
As far as the BR agencies are concerned you should only pay a fee if you need assistance.
If you have assets that you risk losing Bankruptcy Specialists should be able to deal with these legally so that you do not loose them, however if you have no assets and little disposable income then there really is no need to pay a fee as you can do this yourself.
I always urge people to take advice on their situation, but this does not necessarily mean you have to pay for the service.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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dazed and confused
Junior Member
United Kingdom
475 Posts |
Posted - 14 June 2008 : 00:01:30
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But what if the amount which you have paid into an IVA is not enough to cover the IP's costs e.g. if the IVA has only been running say 6 months?
What happens to the IP's costs then? |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 14 June 2008 : 20:27:21
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When this happened to me my IP wrote off the rest of the fees, but I have read of a case where money was outstanding and the IP became a creditor in BR.
Tomorrow is a mystery, yesterday is history, today is the present, a gift to make the most of.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/ |
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melanie_giles
Senior Member
1191 Posts |
Posted - 15 June 2008 : 12:08:43
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Unpaid fees in an IVA will become an unsecured creditor in any subsequent banktruptcy - or they will be written off as happened in Skippy's case.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
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Topic |
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WHY DO THE IPS TAKE ALL THE MONEY WHEN IVAS FAIL?
