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By petrina12
Hi there

I was in an IVA for a year but unfortunately my circumstances changed and I was no longer able to pay it. I decided that the best thing to do is go bankrupt. I had had a discussion with my IP and have been waiting for my paperwork to come through. That was back in November last year. I understand that I can not go bankrupt until I get written confirmation from my IP that my IVA has failed. I just want to get the bankruptcy process moving now and move on with my life but when I chased up my IP this morning they say I have to wait until the end of Feb before they can give me this paperwork. Is this delay reasonable / normal or should I complain? Thanks for any help.
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By Geraldine
Hi Petrina12 and welcome to the forum.

I have to say that this does seem to be a very long time to have to wait for a failure certificate. I am sure if they wanted to the IP could move quicker than that. All I can think of is they have such a large backlog of IVA failures that they simply do not have the manpower to get round to it. Which IP are you with?
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By James Falla
Hello Pertina12

There could be a less sinister reason for the delay in Grant Thornton supplying you with your certificate of failure. Ultimately the IP is not able to fail your IVA until you are three months in arrears with your payments. Only then can they issue with what is called a notice of breach. They then have to give you 28 days to find a solution to make your IVA work if you want to. Only after that time can they issue the certificate of failure.

If your last IVA payment was made in October 2011 and then you decided that your whould have to let your IVA fail in Nov 11, then you will not be able to get your certificate of failure until the end of Feb so what you have been told does make sense.I suggest that this is probably why you are having to wait. Having said that it is alsways worth speaking to GT again to ask them.
By petrina12
Thanks James. Well I was already in 3 months arrears in November and they sent my the notice of breach in December. I have just called Grant Thornton again and they say I should have my letter confirming the failure by the end of February.... :x
Hello Petrina12

This sounds like exceptionally bad service from GT. The bottom line is that after the 28 day notice of breach has lapsed any reasonable IP provider should be able to get your certificate of failure out to you within a couple of weeks max. I think Geraldine might be right when she said that this may well be a reflection of the number of IVAs GT are currently failing. Last year they took a considerable number of cases over from an IP firm called Baines and Ernst. Perhaps these have added to the workload?