Back in June 2008 we settled our iva by selling our property. we had been in the IVA for 3 years and wanted to complete, and ill best option being the sale of our house. In July 2008, our IVA company Clearstart, was brought out by free from debt and upon speaking with them they stated that it would take three to four months before we received any papers for completion. In September i rang them and they stated that it would take longer as they had to sort out all the figures from each company, (even though there are only 2). As of November we received a letter asking for us to sign a form giving them access to speak with all the people we owe money to. I signed it and have sent it back. The questions id like to ask, is this normal procedure or am i being pushed from pillar to post through bad communication within their company? How long do they have to complete once the settlement figure has been received? Although its only peanuts are they receiving interest on that money?
Also i was advised that once i have received my completion papers, i will be able to clear up my credit file? Is this true and what does cleaning up my credit file acutally mean.
Hey Gavin, congratulations on completing your IVA. It must be really frustrating all the waiting. I'm sure Melanie will be able to advise you how long you should wait. As for the credit file, your IVA will drop off your file 6 years from the start of your IVA, so even though you've finished early, it'll still be rubbish. X
My personal view is that full and final offers of settlement should not be put forward until the IP is in a position to close the case. It seems bizarre that 3 years into an IVA with 2 creditors, that claims have still not been agreed - and that you have to give authority for the IP to discuss matters with your creditors. There is something not quite right there!
I think that you need to hound your IP to get the case closed down asap now - and get them to commit to a realistic timescale so that your expectations are managed. I would not expect this to take more than one more month to be frank.
I totally agree with Melanie. In fact an IP is under a duty to ensure that cases are progressed and closed in a reasonable amount of time. Four months is clearly not a reasonable amount of time, especially when there are only two creditors involved.
Like Melanie suggests - hound your IP and ask them for copies of the proofs of debt they have. At least one of them must had lodged a claim in your arrangement for it to have been approved in the first place.
With regards to your comment about interest. No your IP will not benefit from this. Any interest earned on your client account must be passed onto your creditors.
Kind regards, Elizabeth Pywowarczuk, Insolvency Practitioner.
If you would like me to advise you about an IVA and if appropriate propose one for you, please visit my website at www.liberta.uk.com
