as i already have an iva which my ip tells me will fail due to pending reductions in wages,will we to have to explain all the outgoings to him(OR) again?we have "all" the documentation still from dfd which was drawn up when we first entered our iva?
if your IVA fails the creditors are likely to do one of 3 things.
A) Instruct your IP to petition the court for your bankruptcy - this would cost £1.5K upwards which would come from the funds that you have paid into the IVA. It's also an unlikely option unless there are assets available. Creditors are not usually in the habit of doing this unless a benefit for them is probable.
B) Recommence chasing the debts individually placing you in a similar pressurised situation as you were in before the IVA began - usually the most likely.
C) Wait for you to petition the court for your own bankruptcy.
If bankruptcy becomes the end result then the OR will indeed need all the info previously provided but an up to date version.
The OR will also contact the IP and look at the details of the IVA. The fact, for whatever reason, that a reduction in income has led to the failure of the IVA is a common problem and one which the OR would accept quite readily. These things happen and you have tried your best to repay the debt.
If you should decide to petition the court yourself you will need a Certificate of Failure / Termination from your IP or, at the very least, a letter from the IP accepting your decision for bankruptcy.
visit to the or.
Posted - 04 January 2009 : 11:33:02
