Hi, Please help me. I began an IVA in July 2006. Everything has been running smoothly until now, 2 years down the line, I have had a letter today from Blair Endersby (my IVA provider) telling me that "since your arrangement was approved we have received a significant increase in claims from your creditors. These claims are in excess of the total debt you told us you believed you owed when the arrangement began. As these claims have increased your overall debt by more than 10%, this constitutes a material irregularity. Unfortunately this constitutes a breach of the arrangement. If you do not respond to this letter we may be obliged to issue a formal notice of breach". I do not understand how this can be, as they saw all my paperwork relating to my debts when I applied for the IVA. I have tried to contact them and there is no one available to take my call. Please can you tell me what this means, and what will happen next.
Many many thanks in advance,
Angela Bell
It is a shame that your IP did not independently verify the creditor balances prior to the presentation of your proposals. This is something I do as a matter of course, and it may take a little longer to finalise the proposals, but it helps to make them as watertight as possible.
Your IP are a regular contributor to the forum, so they may be able to help you directly with this.
Hi
I'm sure that Blair Endersby will read this post and respond to you directly.
Melanie is spot on,you can give a figure to the best of your knowledge but this can be way out.
I estimated a car lease shortfall at 5k and it came in at 10k.
Regards
Forgive me, I'm still a bit confused. I got all my creditors to write to me with the outstanding debt amount, this was passed onto Blair Endersby when I applied for the IVA.
Hi
Creditors will give you a settlement figure that will be very different to that used in insolvency.
For example a loan balance will be the remaining monthly payments multiplied by the months left on the full term,this will be very different to the much lower "settlement" figure
Regards
Attitude ... how unfortunate. I must say that I find it hard to understand how this could have happened two years into your IVA. I do not understand why the amounts were not verified at the beginning of your IVA process by your IP.
I had to send off total figures owing, not settlement figures when I did mine, and this was explained quite clearly to me by Payplan.
I can't understand why Blair Endersby didn't sort this at the beginning and think it is disgusting that you have been treated this way.
I hope you manage to get something sorted.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I am waiting for them to ring me to discuss the next step. They asked me to get the figures of what I owed at the beginning and this I did. I, also cannot understand how this has happened after 26 monthly payments with no problems.
I think this is dreadful what happened to you! surely at the initial creditors meeting to start the IVA process with the documents put before them that the debt outstanding was underestimated!!? And yet they agreed to the IVA to go ahead? They should have disputed this at the beginning and said 'hold on we are owed more that this etc.' and not two years later notice this discrepancy.
I hope you can get this sorted and push the ball back to those creditors court saying you submitted all your statements of amounts owing by you at that time, can you get copies of these from the IP?
As said, doesnt IP firms normally request copies of statements for all balances outstanding to gauge the amount owning, I thought creditors in the proposal will see the amount they are allegelly owned and flagged up if it was way off. This default notice is strange given the 'safegaurds'
"DEbt is all in the mind. Think wealth and you'll be wealthy but not in £££"
NBNA wrote:
As said, doesnt IP firms normally request copies of statements for all balances outstanding to gauge the amount owning, I thought creditors in the proposal will see the amount they are allegelly owned and flagged up if it was way off. This default notice is strange given the 'safegaurds'
I did, indeed, get statements from all my creditors at the time of applying for the IVA. These were collected from my house by a representative of Blair Endersby to be taken forward and, I was told, these would be presented at the meeting between my creditors and Blair Endersby. At the time of the original meeting I received a phone call to say my creditors would only accept the IVA if I agreed to a higher payment than the figure proposed by Blair Endersby. I assumed this was after they had seen the statements. Also one of the debts was in joint names but they would not accept a joint IVA. As aresult I am paying an amount to clear this debt, but the company has also made my husband responsible for this debt. As a result he has had to make payments to clear the full amount of this debt. I have asked Blair Endersby on many occasions whether he can reclaim the money I am paying to this company and although I have been told he can, they will not tell me how he can do this. Any ideas?
Why would you get money back if your husband is paying a share towards the joint debt? You are jointly and severally liable for that debt, and so the creditor is entitled to recieve the payments from your husband and also dividends from your estate until the debt has been repaid in full.
I feel that you must let Blair Endersby address these points with you directly, as they have detailed knowledge of your case. Their representative regularly scans the forum, and the feedback from other posters has been very positive for issues raised on the forum and then subsequently dealt with off line - but they probably don't work on Saturdays and Sundays!
Sorry, I didn't put this across right. The company concerned told my husband that he was solely responsible for this debt as I had an IVA. They advised him through a debt management company that the best way forward was for him to take out a loan with them to pay of the original debt, then repay the debt over 10 years with them, which he is now doing.
If you don't get a call from Blair Endersby there is an email address on their posts and as Melanie says the feedback from other people has been positive for problems on the forum.
