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suzie_a
Junior Member
172 Posts |
 Posted - 21 June 2008 : 17:01:25
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My husband and I have been paying an IVA for two and a half years, my husband has been suffering bouts of ill health for which he doesnt get paid, we have just received our income and expediture form from our IP which shows that there is not enough money to cover the IVA payment of £425 per month, can they force us into bankruptcy and if so what happens to all of the money that we have paid them so far?
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debtfreesusie67
Junior Member
256 Posts |
Posted - 21 June 2008 : 17:06:19
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Hi Suzie I just wanted to say welcome to the forum. I'm sorry I can't answer your question but an expert will be along shortly to help.
Hugs
Sue
The only way is up
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 21 June 2008 : 20:19:32
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Hi Suzie and welcome to the forum.
When you miss 3 IVA payments, your IP should instigate faliure proceedings. One of your creditors may then decide to take you BR, but it's not something that would happen automatically. Effectively, the clock gets re-set to just before the IVA commenced.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 21 June 2008 : 21:54:32
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Certainly worth a discussion with your IP to explain the situation and see what advice they can give you.
Couple of questions:-
1. Which company are you with ?
2. Are there any assets that would be at risk if they did make you Br?
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
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suzie_a
Junior Member
172 Posts |
Posted - 22 June 2008 : 00:22:21
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| We do not have any assets and we are with McCambridge Duffy. |
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suzie_a
Junior Member
172 Posts |
Posted - 22 June 2008 : 00:27:41
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| Sorry Julian for appearing a bit dim!! but what do you mean by the clock gets reset to just before the IVA started? What happens to the money that we have already paid in? |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 22 June 2008 : 00:57:01
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Julian means that the contributions made into the IVA will be divided pro rata by the creditors after the appropriate costs of the IP are paid for work done.
As the debt is not written off the creditors would be able to start the teleohone calls / letters etc after the IVA had failed although it would take some time for hem to do so.
If you have paid a sufficient amount into the IVA the creditors do have the option of petitioning for your Br if the IVA fails. Given the genuine circumstances and the lack of assets it would not serve any purpose to make you Br and it would cost them money.
If they don't make you Br then you will need to review your options for the debt which are IVA, DMP or Br.
As you have excluded the IVA solution because of the current situation you need to decide if a DMP is a viable option give your debt and the time taken to repay or should you review the Br option.
Information is power and it is always good to understand the options so they are not a concern.
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 22 June 2008 : 11:22:33
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Thanks Paul ... took the words right out of my mouth :)
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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melanie_giles
Senior Member
1191 Posts |
Posted - 22 June 2008 : 13:45:57
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The first step in this process ought to be a frank discussion with your IP to see if your payments could be reassessed to an affordable level. It may be that a temporary payment break might do the trick to get your payment back on track, and the IP can always go to creditors to get the amounts formally varied. Would seem a shame to let the IVA fail now when you are nearly halfway through.
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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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 22 June 2008 : 14:26:13
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Hi Suzie,
As Melanie says, your first port of call should be a frank and open conversation with your IP to see if the payments can be adjusted to a more affordable level.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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Topic |
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can we be forced into bankruptcy ?
