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scotty
Junior Member
United Kingdom
170 Posts |
 Posted - 19 March 2008 : 17:37:10
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Hi
I have an IVA which as I am single and unemployed I cannot keep up monthly payments so am considering Bankruptcy. In the last 2 weeks I managed to obtain a considerable repayment of overcharges from my bank who paid all monies to the IVA.The amount repaid was my entire debt to the Bank, therefore the debt never really existed.I do have other creditors.The company managing the IVA say the money goes into their 'pot'and is not used to pay my creditors which would have avoided me considering bankruptcy. Now I am wondering if I request bankrupcy can I also request the repayment of the monies the bank paid to them? Does anyone know how this works.? |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 20 March 2008 : 20:59:15
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Hi Scotty,
Welcome to the Forum,
If you read your IVA proposal there is normally a clause in there which states that on the event your IVA fails your supervisor should petition for your Bankruptcy.
I would talk to your supervisor and ask them to do this as it will save you the cost of the bankruptcy.
If they will not help then when you declare your Bankruptcy inform the official receiver of this and he will chase the IVA supervisor for these funds.
Unfortunately you can not request funds back from them, they will either have to pay the costs to make you Bankrupt or pass the funds to the official receiver, either way you will not see a penny.
One thing to keep in mind is that you will require your certificate of failure from the IVA company prior to your being able to declare Bankruptcy as the judge will want to see this.
All the best,
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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melanie_giles
Senior Member
1191 Posts |
Posted - 21 March 2008 : 09:29:51
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The refund is undoubtedly captured by the "windfall" provisions of the IVA so is rightly payable to the Supervisor. But this should not have been used to repay just the bank's debt - the monies should have been available for a pari-passu distribution amongst creditors generally.
I do not agree that the Trustee will chase the Supervisor for the funds. Those funds are rightly payable to the IVA creditors, and will be held in trust for that very purpose. |
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AlanO
Junior Member
United Kingdom
259 Posts |
Posted - 21 March 2008 : 11:02:49
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Hi Scotty,
Could be worthwhile talking further with the IVA provider to see if, bearing in mind the circumstances and that there has been a windfall, would they approach the creditors to consider a variation to agree to a satisfaction statement being issued - Highly unlikely but you never know.
When they are writing they can then also go down the more standard route of seeking approval ot the termination and whether they are to file for your bankruptcy.
With regard to the IVA supervisor filing a creditors petition for your bankruptcy this will depend on a few aspects - 1 was it conditional within the terms, 2 if the creditors approve it and 3 is there enough money in the pot.
If they do not file for your bankruptcy and that is your choosen route you will have to pay for it.
All the best Alan
www.debtdr.co.uk |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 23 March 2008 : 20:48:49
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quote:
Originally posted by scotty
Hi
I have an IVA which as I am single and unemployed I cannot keep up monthly payments so am considering Bankruptcy. In the last 2 weeks I managed to obtain a considerable repayment of overcharges from my bank who paid all monies to the IVA.The amount repaid was my entire debt to the Bank, therefore the debt never really existed.I do have other creditors.The company managing the IVA say the money goes into their 'pot'and is not used to pay my creditors which would have avoided me considering bankruptcy. Now I am wondering if I request bankrupcy can I also request the repayment of the monies the bank paid to them? Does anyone know how this works.?
Hi Scotty,
I have some questions as to the information you gave in your post.
You say that the amount repaid from the bank was the entire debt to the bank, did the supervisor use this to clear the banks debt in full?
You have then said that the "money goes into their pot and is not used to pay them creditors" by them do you mean the IVA company or the bank?
I agree with Melanie in so much that the repayment comes under the windfall provisions of the IVA, and this should have been split amongst all your creditors, but the way I have read your question is that the windfall has been taken by the IVA company to cover their fees and not benefit the creditors in any way, if this is the case and this results in your Bankruptcy then I feel the OR would take a very dim view of the IVA comapny.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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unable to continue with IVA
