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Remus2004
Remus2004, Barrister
Category: Property Law
Satisfied Customers: 2437
Experience:  Over 5 years in practice.
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My son entered into an IVA to pay off his creditors and has

Customer Question

My son entered into an IVA to pay off his creditors and has been paying this for over a year after his Sports Club business failed. One of the creditors is the local authority and they have now sent a demand for another years council tax as his name has not been removed from the lease. Could you please advise how he goes about this. Thank you. G Connor
Submitted: 3 years ago.
Category: Property Law
Expert:  Alex J. replied 3 years ago.
Hi,

Thank you.

Is this an Assured Shorthold Tenancy Lease?

Kind regards

AJ
Customer: replied 3 years ago.

This was a 15 year lease on a Sports Club of which my son was a tenant for 3 years before the business folded.


George Connor

Expert:  Alex J. replied 3 years ago.
Hi

Thank you.

Has the lease been sold or forfeited by the landlord?

Kind regards

AJ
Customer: replied 3 years ago.


The lease has not been sold or forfeited. On entering an IVA my son was under the impression that he was no longer eligible to hold a lease. The landlord seems quite content to leave the property as it is with the lease still in my sons name.


As the local council is one of the creditors and agreed to the IVA being taken out are they legally in their right to demand more money. We were under the impression that once a creditor agreed to this arrangement they could not apply or ask for more money and that the lease would automatically revert back to the landlord. Since the IVA has been taken out the Landlord has not been in touch with my son and has not asked for more money as he was the main creditor.


Yours


George Connor.

Expert:  Alex J. replied 3 years ago.
Hi,

Thank you.

Is your sons IVA administrator making payments under the lease?

Has your son sought to sell the lease and/or the business?

Sorry for the further request for information but I am just trying to build a full picture as far as possible?

I would suggest that you send the council a copy of your IVA agreement, or get the IVA administrator to write to the council as a starting point.

I look forward to hearing from you.

Kind regards

AJ
Customer: replied 3 years ago.


Apologies for not replying sooner. Have been away for a few days. Thank you for your reply. This matter seems to be getting more and more complicated and my son now feels that the best solution is possibly for him to go bankrupt. Thank you for your advise and help in this matter. For being very patient with my request I would like to award you the stars you require. Thanks George Connor

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