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Failed IVA leading to Bankruptcy


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Hello to everyone, what a refreshing breath of fresh air to realise that I am not alone with my money worries.

 

Four or so years ago, my wife and I started getting more and more into debt, it got to the stage that in or around August 2006 we got talked into an IVA, I say "We" but the way it was proposed was that we remortgage our house and with the £40,000 surplus, £20,000 went to my wife for her to telephone all the people she personally owed money to and get a settlement of the debt (something she did very well with by the way). The remaining £20,000 would go into an IVA Pot for me (who took on many of the joint debts). In addition to this £20,000 I were also instructed to pay £285 per month.

 

After some initial teething problems, I set up the DD for the £285 but kept getting calls from the people we owed money to, as though the IVA were not in place at all. I attempted to get in touch with the "executor" of the IVA, only to be told he was on holiday (you can imagine how much that cheered me up?), when he finally returned he asked me who was bugging me, I told him and the phone calls stopped for a month or two, rinse & repeat.

 

After this happened for like the 3rd time I wrote to him telling him I was not happy with his service and until these phone calls stopped for good, he was not getting any more money from me ... to cut a long story short, the phone calls and letters eventually did stop and I made up most of the deficit (he never claimed the shortfall was an issue).

 

12 months into the IVA he asked me for my P60 and past 3 months payslips so he could do an annual review, I told him that unfortunately I had misplaced my P60 (Genuine) but could provide the payslips, and I was looking forward to the review as the increased mortgage and £285 per month were making our life hell and that we were getting deeper into debt again. He responded with the most arrogant letter telling me to stop blaming everyone else and get on with it and he still wanted my P60.

 

To Get to my point (eventually), I have today received a letter from him telling me that he has terminated our agreement and scheduled a meeting of debtors to determine whether to file for bankruptcy.

 

I feel like attending that meeting to tell them all that it was the inflexibility and attitude of the IVA Executor that lead to the termination, any advice on how to proceed with this would be gratefully accepted.

 

Thanks for reading.

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ello and welcome to CAG I don't relly know anything about IVA's but i'm sure some one who does will come along and help.

 

at the moment how much are you behind on IVA?

 

it good that you wrote to him about service you have been receiving as it seems he not doing his job properly, this might help a little. as to meeting me personaly would make an appearence aswell.

 

have you got any terms and conditions from IVA bloke, there MIGHT be something in there if you are receiving a poor service.

If my advice has been helpful please feel free to click on my scales :grin:

 

Creditors and DCAs - Letter Templates & Budget Planner (CCA request letter N)and other templates)

 

Debt Collection Agencies & Statutory Demands, a few strategies

 

Abbey charges, Won

B-card non-disclosure of S.A.R, WON £30 costs awarded

B-Card, court for harrasement, failed to defend WON £175 http://www.consumeractiongroup.co.uk/forum/general-debt-issues/125554-28-days-later-no.html#post1422508

B-Card charges, partial refund, still fighting

Vanquis-Cabot, GIVEN UP :lol:

HFC & my mum, no brainer, no CCA http://www.consumeractiongroup.co.uk/forum/general-debt-issues/133330-hfc-my-mum.html#post1404514

 

PLEASE donate to CAG however small. They are fighting for YOUR rights as a consumer. http://www.consumeractiongroup.co.uk/forum/

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How much did you owe? Were the joint debts accepted as part of the IVA, this is quite unusual. Who is the IVA with and what are the terms and conditions relating to bankruptcy, and I find it odd that you remortgaged at the beginning and paid a lump then a monthly amount?

Consumer Health Forums - where you can discuss any health or relationship matters.

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According to paperwork I received this morning ... The Gross unsecured claims received total £46,652.59.

 

To Date he has received

 

£20,053.63 from the remortgage

£5,055.00 "Voluntary" Contributions

£673.91 Bank Interest (Gross)

==========

£25,782.54

==========

 

and from this he has paid

 

£1,500.00 to himself as "Nominee"

£1,000.00 to himself as "Supervisor"

£250.19 for Office Holders Expenses

£134.71 Income Tax ???

£18,777.68 to Trade & Expense Creditors

£455.56 Irrecoverable VAT

==========

£22,118.14

==========

 

Leaving a Balance in hand of £3,664.40 which he claims he will hold onto to petition my Bankruptcy

 

The "Gentleman" in question is Tom Harrison of Tom Harrison Insovency Services.

 

Joint debts were accepted (as was my Daughters Disabled Living Allowance). As for the T&C, I no longer have a copy of the original contract, I am sure I did have a copy but am unable to find it.

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were you aware of his fees/charges?

 

£250.19 office holders expence ????????????????? wat they brought themselves a gold plated coffee machine

 

£455.56 looks iffy aswell

If my advice has been helpful please feel free to click on my scales :grin:

 

Creditors and DCAs - Letter Templates & Budget Planner (CCA request letter N)and other templates)

 

Debt Collection Agencies & Statutory Demands, a few strategies

 

Abbey charges, Won

B-card non-disclosure of S.A.R, WON £30 costs awarded

B-Card, court for harrasement, failed to defend WON £175 http://www.consumeractiongroup.co.uk/forum/general-debt-issues/125554-28-days-later-no.html#post1422508

B-Card charges, partial refund, still fighting

Vanquis-Cabot, GIVEN UP :lol:

HFC & my mum, no brainer, no CCA http://www.consumeractiongroup.co.uk/forum/general-debt-issues/133330-hfc-my-mum.html#post1404514

 

PLEASE donate to CAG however small. They are fighting for YOUR rights as a consumer. http://www.consumeractiongroup.co.uk/forum/

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Well, to be honest you've just seen an example of why I think IVA's are rarely worthwhile.

i will be off site for the next month or so. if you have any problems, feel free to report the post so a moderator can help you.

 

I am not a qualified or practicing lawyer.

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Hi There

 

this is my first post on this forum so hope I dont breach any etiquette.

 

I am a little confused regarding yur statement:

 

The remaining £20,000 would go into an IVA Pot for me (who took on many of the joint debts). In addition to this £20,000 I were also instructed to pay £285 per month.

 

If your wife managed to settle her debts with her share of the equity, how has it concluded that you have 'taken on the joint debts' if the debts were joint and several your creditors wouldnt accept this anyway, can you explain please?

 

It sounds to me from what you have said, that an IVA may not have been the appropriate way forward for you, you should not be getting further into debt. Furthermore, the review would not have been taken with a view to reduce your debt an IVA is not flexible and if you have gotten yourself into arrears, your supervisor can fail the IVA and if there is a bankruptcy clause in the arrangement (not very common these days) then he is duty bound to make you bankrupt.

 

You say that it was the inflexibility and attitude of your supervisor that has lead to the failure of the arrangement? I don't think (with respect) that you could expect to win that argument, there is no flexibility built in to an IVA, any flexibility is at the discretion of the supervisor.

 

The only thing that I could suggest is that you try and get back in his good books, I appreciate that this will not exactly sit well with you, but considering that you are staring bankruptcy in the face, it may well be in your best interests to get the IVA back on track and you need to move quickly.

 

Hope this helps

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