HMRC along with a number of other creditors were threatening to petition for the bankruptcy of the debtor. The debtor was referred to BRI Hitchin by a local solicitor.
The debtor, following a messy divorce, had no instant cash. However, he did have assets in the UK and abroad and could agree to repay the liability he owed if he was given sufficient time to realise some of his assets into liquid cash. The debtor, with the assistance of BRI, had an IVA approved giving him the time and protection from being forced into bankruptcy. The debtor did, on a number of occasions, fail to sell specific assets within given timescales. However, the Supervisor and the team at BRI felt that the debtor should be given extensions because the results for all parties was better than the results that could be achieved in a bankruptcy. The IVA that was meant to be concluded within 18 months took nearly three years to conclude. However, maintaining good communication with the creditors, having patience and being persistent resulted in a return of more than 97p in £ to creditors.
Good news also for the debtor who retained control over his assets and has avoided bankruptcy.
If you have any clients that you feel need our assistance with similar matters, our team of qualified Insolvency Practitioners can assist with finding the right solution to suit individual needs.