I have received a call from my IVA company that i please need some help with.
We have 3 more monthly contibutions to make before our 5 year term is up, and our IVA company has contacted to explain there is a problem they have just noticed that needs to have a variation submitted.
Basically one of our creditors had accepted the IVA on the understanding they would receive a minimum dividend of 0.62/£1, our iva was only ever going to realise 0.48/£1.
The IVA company have said we need to submit a variation to get this removed, however am i right is saying this would be like the very first creditor voting whereby a % need to say 'YES'/
My IVA company have said this may cause the IVA to fail can anyone tell me where I stand as to date we have met all requirements of the IVA, never missed a payment and made all additional contibutions for shares without prompt.
What action if any should I be looking to take against the IVA company who have brought this to our attention with only 3 months to go.
Any help appreciated, it feels like someone has just smashed the light that was glowing at the end of the tunnel [:(]
Thanks
Steve
Last edited by puffa on Tue Sep 11, 2012 10:11 am, edited 1 time in total.
Its a fundamental problem that may have legal consequences that are larger than your IVA realises. Its probably remedied if the creditor votes for the variation but you may want to chat with an experienced insolvency lawyer just in case.
Hopefully as your IVA co have acknowledged ? That they have overlooked this until now, they will be accommodating and very helpful in getting this resolved
Which IVA company is it ?
Good luck, I know it's worrying but as often seems to be the case I'm sure it will work out ok
Last payment made April 2012
Certificate received 1st Nov 2012
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by 12 months to go
Good afternoon pufa
Hopefully as your IVA co have acknowledged ? That they have overlooked this until now, they will be accommodating and very helpful in getting this resolved
Which IVA company is it ?
Good luck, I know it's worrying but as often seems to be the case I'm sure it will work out ok
Hi yes they have been very accomodating !, however they see the only course of action is to submit a variation to the orignal terms, if that is not accepted then then IVA would fail and we would then be looking at Bankcruptcy.... What a mess with 3 months to go !
That doesn't seem fair when you've gone through almost the entire term of the iva and kept up the payments. Kind of defeats the object of going into the iva in the first place. Hopefully the creditor will see sense.
Do you know if the debt related to that creditor has been sold on? If it has then the new creditor would be voting so if they bought the debt for pennies in the pound they may accept the variation without any problems.
I would have thought the first port of call would be to get a variation meeting arranged ASAP and your IP to push for the 62p/£ removed.
Only if you get a 'No' from that can you really start to think about what other options are available. Which could be another variation meeting to maybe offering 12 more payments and other things like that.
Also the IVA wouldn't immediately fail if the variation meeting vote is 'No'. That would only apply at full term as it is only then that you didn't reach minimum dividend which I appreciate isn't too far away.
Last edited by herbekj on Tue Sep 11, 2012 1:18 pm, edited 1 time in total.
Last Payment - November 2011 - Completion Certificate received 2 weeks after last payment, Removed from Insolvency Register within 4 weeks after last payment.
Surly the company is at fault they get paid for the admin work...I would seek advice from a lawyer as a back up...if you have meet your obligations why should it fail through no fault of your own...good luck
I am no expert but would like to give advice based on my own personal experience...
Don't wish to be a party pooper but based on the OPs information the IVA agreement clearly states that 68p/£ is required as a variation by this creditor and would have been agreed by the debtor at the start of the IVA. On that basis the debtor has not met there obligations.
The real problem is that it has been ignored by the IP company to ensure the debtor has made payments to meet that minimum dividend over the period for that variation.
Just get the IP to submit a variation to remove this clause and then take it from there.
You can't do anything until a variation meeting has been rejected and if you engaged a lawyer, surely his first words would be , get the IP to submit a variation before we continue!
Last edited by herbekj on Tue Sep 11, 2012 7:15 pm, edited 1 time in total.
Last Payment - November 2011 - Completion Certificate received 2 weeks after last payment, Removed from Insolvency Register within 4 weeks after last payment.
Why on earth has it taken them this long to realise this! And were you aware that you agreed to a minimum dividend return far greater than had been offered? How did your IP, the creditors and you believe you were to achieve this?
Probably because as a debtor getting the phone call from the IP saying we have this varition asking this do you agree we are in some way 'Non compos mentis' and would agree to sell the wife for 5 camels (actually good deal that) if that got a yes and then worry about the implications later.
In this case the variation should have been looked at a bit more carefully.
Last Payment - November 2011 - Completion Certificate received 2 weeks after last payment, Removed from Insolvency Register within 4 weeks after last payment.
If I was not convinced that any of my clients understood what they were agreeing to, I would take all steps possible to ensure that they did.
I laughed about the camels. My husband tried to sell me for 12 camels when we were in Eqypt once, and actually had a number of takers!! Fortunately he soon remembered who the actual breadwinner is!
Well that came from a story from when my late father and mother had gone to Egypt.
I'm not sure which one was offered camels for the other....
Your comments of course are correct as usual, how/why did the IP.debtor agree to something unachievable but it seems to have happened.
Last Payment - November 2011 - Completion Certificate received 2 weeks after last payment, Removed from Insolvency Register within 4 weeks after last payment.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by MelanieGiles
Why on earth has it taken them this long to realise this! And were you aware that you agreed to a minimum dividend return far greater than had been offered? How did your IP, the creditors and you believe you were to achieve this?
Thanks for replying Melanie
I was aware that at the start of the IVA KPMG approved the IVA on the basis the monthly contributions were increased by £50 a month to which I agreed. My IP has advised me today that KPMG's original calculations would not achieve the 62p/£1 either, something that has never been picked up on until now.
Its one hell of a mess that I hope can be resolved.
