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tricer
Starting Member
United Kingdom
43 Posts |
 Posted - 28 October 2010 : 11:26:21
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| Hi, msyself and husband were in an IVA which we have struggled to maintain the £759 per month. Whilst in the IVA we have used overdraft with Santander bank £3500. I approached our IVA company to advise we were struggling and about the overdraft. We were told that we needed to borrow the £3500 off friend or familiy to repy overdraft. No one we know has that kind of money so we said we would petition our bankrupty. At first the IVA company agreed and said yes thats fine go ahead, we have filled in all the forms, changed bank accounts to a coop basic moved wages and DD's. We then got told that we couldnt petition until they have a creditors meeting to see what they want to do. The meeting is 16 Nov. In the meantime our Santander bank account is at overdraft limit and we are still getting charged the monthly interest for being overdrawn, which means we are now over our aggreed limit. Should I call the bank and explain our situation? Im worried that they will send baliffs. We havent got a court date yet as we have to wait for the creditors meeting. So stressed. Sorry for the long winded post. Many thanks any advice would be great |
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paulgm_2000
Starting Member
49 Posts |
Posted - 28 October 2010 : 13:04:08
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Hi, although I'm no expert I will try and answer your questions as best I can.
Firstly, I was in an IVA before going bankrupt and had to wait around 3 months before being issued a certificate of failure from my IVA company, only then could I got bankrupt. This is standard procedure just in case your situation changes and you can continue with IVA.
It is very unlikely that the bank will send bailiffs for simply going over your overdraft limit. If that was the case there would be millions of baliffs visits everyday in the UK! :) Besides baliffs are normally only sent when you owe money for things like council tax. Baliffs are normally court appointed too so the bank would need to issue a claim to court first which they rarely do as far as I am aware.
I'm surprise the IVA company let you use the overdraft have you are normally forbidden from using credit whilst subject to an IVA?
I would just sit tight for a few weeks and let the bankruptcy take all your outstanding debt.
I was hardly contacted by my creditors (i had 15 or so!) between my IVA ending and Bankruptcy proceedings.
Believe me, once the bankruptcy has gone through you will feel greatly relieved. However, I would strongly suggest you get some advice from one of the experts on this site first.
Good luck |
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 28 October 2010 : 14:01:01
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You don't need to wait for the creditors meeting to decide you want to declare BR and the IVA company cannot stop you from declaring BR.
You do need to let you IVA fail before you can declare BR and to do this you just need to miss 3 payments of your IVA and then get a failure certificate from your IP.
It sounds like the IVA firm is going to try to reduce your payments as I can't see any other reason for them to have a creditors meeting unless they are going to try to include your OD in the IVA.
IVAs make a lot of money for companies whereas BRs don't. Most IVA companies are looking out for the best interest of their clients however there are some that are only interested in keeping people in an IVA so they can get their money. With the IVA firm saying you cannot declare BR until after the creditors meeting it sounds like this company is more interested in getting their fees for the IVA.
If they had mentioned that they were going to have a creditors meeting to try and reduce your monthly IVA repayments then it would have been a different matter but I would suggest being very careful moving forward.
If you have decided to declare BR then stick to your guns. Don't pay the IVA repayment any more and use the money to pay the BR fee.
Also check with your local court as to whether they need to see a copy of the IVA failure certificate in order to declare you BR as some do. |
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tricer
Starting Member
United Kingdom
43 Posts |
Posted - 28 October 2010 : 15:20:37
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| Thank you for your replys. We have missed more than 3 payments since the IVA started Nov 06 so im suprised that it wasnt failed along time ago. I recently queried that when I contaced them to say we were struggling and was told its up to the supervisor to fail it. They werent aware of overdraft until I told them. Theve said the creditors meeting is to see if the creditors want to fail the IVA and petition bankruptcy or whether they ok for us to petition. We are not currently paying anything to the IVA and have the fees and paperwork ready, its so frustrating and stressfull being told by them to go ahead one minute and then we have to wait |
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Viki.W
forum expert
United Kingdom
2211 Posts |
Posted - 28 October 2010 : 15:50:58
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Hi Tricer,
As the others have said, you need your failure certificate which you should get after the creditors meeting. It is quite usual for them to call a meeting when you are failing your IVA.
If you have been in the IVA since 2006, I would check to see if they have set funds aside to petition for your bankruptcy which would save you the fees. They may not have, but it's worth asking.
Viki Warbrooke
Vincent Bond & Co
If you would like free advice on all options available and help with your bankruptcy petition please contact me at http://www.vincentbond.com/about_us_Viki_Warbrooke.asp
Please read my experience of debt via my blog at http://vikiw.blogs.iva.co.uk/ |
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Told we couldn't petition for bankruptcy
