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Hi,desperately in need of some quick advice for my sister and brother in law. They are about 2 1/2 years into an iva, but are left with only £20 to £40 a week to live on with their 2 children. Its not so much the iva but the mortgage is just too much. They borrowed money for a full and final offer and put their house up for sale to pay the money back they borrowed leaving them with nothing. The offer has been in now for about 8 weeks and today they were told it will take between 6&8 months to be completed. They are still taking monthly payments and this is crippling them. How can they get rid of this iva as quickly as possible. How long does bankruptcy take if they decided to go down that route? Can they get the money back they offered?
Hello Roger Ram and welcome :)

This seems to be a very strange situation. Am I right in thinking that your sister and brother-in-law have borrowed money against their property to make a full and final IVA offer and actually taken the loan before the settlement offer has been accepted by their creditors? Normally the money should not be borrowed until the creditors have agreed they will accept it. Then once it is raised, the IVA is automatically completed and no further payments are necessary.

If their IP has taken the funds I think it is totally unacceptable for them to keep them and expect ongoing IVA payments which they must realise are unaffordable. I suggest they discuss this with their IP asap. on top of this it should certainly not take 8 months to get a variation meeting with creditors. I am sure the experts will correct me if I am wrong but I would have though that this would take 4 weeks tops.
Thanks Hayden

As far as I am aware, the IP told them that they needed to make the money available for the full and final settlement available before the offer could be made. I will pass your advice on to them and get them to ask their IVA company why it is taking so long to organise the settlement. Do you think it would be possible to ask for the money back at this stage if they feel they need to change their mind as they will not be able to survive trying to make all their payments for the next 6 months
Hello Roger Ram

I have to say that I agree with Hayden. I know that it is easy to say in hindsight but in these circumstances the lump sum should really not have been handed over to the IP until the creditors had agreed the settlement. I am very surprised that your sister and brother-in-law have been told it will take 6-8 months to sort this. It does seem to be an extremely long period of time. Most IPs would want to put the proposal to the creditors as soon as possible so that they are able to draw their final fees. If this cannot happen within a month or so then I would think that your sister would be well within her rights to demand the money back. She certainly needs to have a frank conversation with the IP to explain the situation and demand that some action is taken asap.
Hi Roger Ram

Do you have any update on your Sister's situation? Has she had any more communication with her IP?