Default notices

[louiseh]

I have now reached the stage where I am recieving default notices, pay up in 28days or we can take court action to recover the whole amount (RBS). I started my IVA application 12 weeks ago and still don't have a creditor meeting date, not seen a proposal yet. What is likely to happen in 28days time, as my IVA will not be in place by then.
I know from what I've read that Grant Thornton do seem to be quite successful with their IVA proposals but they do take a long time to get anything done, and aren't that hot on answering emails either (can't phone during working hours because of my job). I am starting to think IVA may be a mistake and I could have saved myself a lot of aggrevation and just gone Bankcrupt in the first place.

[freelili]

Hi louiseh
Default notices are quite common, they are just a legal way of stating that you are in breach of the agreement. It takes a whole lot longer to be taken to court so I wouldnt worry about it too much, we have all had them. I would be quite concerned about waiting 12 weeks without a meeting date, whats the delay?? You still have the option of bankruptcy if you have no assests to protect but it might be worth hanging on a little longer, could you write to your IP to say how stressful it for you waiting and asking for reasons for the delay? Please do not worry about the default notice, you are trying to address your debts, my house looks like an explosion in a default letter factory but nothings happened yet. Its been seven months since I made full payments to my creditors,

Hope you can get an answer and some peace of mind soon
Good luck

LILY

I believe that angels breathe and love will live on and never leave. I cherish all you gave me everyday.

[jamesfalla]

Louise

Do not lose heart. It is normal to receive default notices from creditors while you are going through your IVA application. These are usually standard computer generated letters and will always threaten court action.

However, i do agree that 12 weeks seems a long time to have to wait. Normally if all your paperwork is in order, your IP should be able to get your creditor meeting date fixed within 6-8 weeks max. I suggest that you call Grant Thornton and find out what the delay is.

James Falla

Expert in IVA, Bankruptcy and informal Debt Management solutions for over 10 years.

For more information visit www.jamesfalla.com and visit my blog at: http://jamesfalla.blogs.iva.co.uk

[tracy.h]

Hi louiseh
Wecome to the forum sorry you are having so much trouble,with getting your iva sorted out,if you havnt yet got a proposal,and feel that you arent getting the service you need why not try another company.
It normally takes 6-6 wks to get an iva started and finished unless you have a complex case.
Have you informed your creditors that you are seeking to propose an iva,or did GT say they would contact them for you,i think you obviously need some answers as this isnt helping you.
Im sure one of our technical advisers will give you some professional advise but it might help if you post your current financail details ie:income and expenditure mortgage if you have one any equity in the property and a list of creditors. hang in there.

Tracy

[allan.f]

Hi,
I had the same happen to me, RBS, my main creditor, served me default notices whilst my IVA proposal was being prepared.I owe them £22,000 on credit cards,£27,000 loan,£2,500 overdraft and have a £62,000 mortgage with them.Before my IVA meeting was arranged they wrote to me demanding the whole £113,500 within 7 days.I rang them and explained the situation and they said that the computer churns out the demand after a certain time and to ignore it.They never bothered me again.After the creditors meeting I received a letter from them saying that my mortgage account had been returned to normal and apologised for any inconvenience they may have caused.
These companies have set procedures and are computer driven so they will churn out frightening demands etc.Don't ignore them,simply get in touch with whoever is preparing your IVA explain what is happening and then send all correspondence to them,meanwhile any calls from creditors divert them to your IP.I had the details next to the phone so I could just read it all out.Try not to worry it doesn't solve anything.

[louiseh]

Thanks for all your replies.
I don't think my case is particularly complicated, do own my own home but little equity involved, I have thought about trying another company but, Grant Thornton have all my paperwork to get this back amd start again, I could still be looking a 2 months, and as the number of people trying the IVA route increases I would imagine I'd be at the back of someone eles queue.
Also I've had MBNA and HSBC ask me to inform them when I have a date for my creditors meeting, thought that was IPs job! As for contacing creditors so far I've done all the contacting, I assumed that when I sent back letter of authorisation Grant Thornton would contact creditors, but so far Morgan Stanley said had heard nothing and would speak to GT, I had to take their details (phone/ fax person ) phone Grant Thornton and get them to send an authorisation letter, so that GT could talk to them about Morgan Stanleys harrassing phone calls, made no difference though Morgan Stanley are still harassing me.

I am begining to wonder what service I am paying for( thankfully not paid any up front fees)

I think the main worry is no creditors meeting date, no light at the end of the tunnel, and if I'm going to end up in court I'd rather it be my choice and a Bankruptcy hearing.

[allan.f]

Some creditors try it on to the end,saying they have heared nothing about an IVA,What IVA?What's an IVA?
It takes most creditors months to actually do something that will impact on you ie filing court proceedings etc.even then the court would take time serving any orders on you.Remember that the IP on your case is acting FOR YOU and being paid for it so make full use of their services and keep on to them .
In a short time you will be sat back counting down your 60 months,keep smiling

[Adam Davies]

Hi Louise
You are probably better to stick with them but I would take a lunch break and phone Grant Thornton.Twelve weeks is plenty of time and you have at least another 5/6 before your creditors meeting.
They will earn a tidy sum from your IVA so do not feel that by phoning them that you are a nuisance you are ,afterall ,the customer !!
regards,

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

[northumbrian69]

Hi

I was with Grant Thornton, they are slow but very thorough, it took 13 weeks from initial interview to creditors meeting, once I signed and returned my proposal the creditors meeting was arranged immediately, they give creditors 20 days notice of meeting once the proposal is signed. On the plus side my IVA went through first time it was really well prepared.
It's a shame you are unable to ring up, Grant Thornton are very helpful, and at least you will find out what is causing the delay, the delay with mine was due to a 1 month backlog going to the 'proof writer',once she got started things went quite quickly.

Please try and find a way to ring Grant Thornton and find out what is happening, going through an IVA is stressful enough without being kept in the dark and worrying, you can also make them aware of the Default Notices, if it becomes necessary they can apply for an Interim Order which stops any court action during the IVA proposal period .

[louiseh]

Thanks for your replies,

I phoned about a month ago and was told i'd be contacted in 10-14 days by the drafter. That passed so I phoned again 2 weeks ago and got the same answer, so I expect to be told the same again. I wouldn't mind if they just turned round and said you'll get your proposal in 6weeks at least i'd know. Its not so much how long it is taking, its just wanting a definate end in sight.

[olympic_torch]

louiseh.
don't lose heart.
you have to make time to ring gt.
i was in the same position as you with them until yesterday.
i thought it would never get sorted.
once the proposal was returned things moved along quickly.

[MelanieGiles]

An IVA should not take three months from the time of instruction to drafting, unless the case has complexities. Is the IP waiting for any additional information from yourself?

I am sure that if you speak to the Nominee personally (if you know who they are) that this can be sorted out for you relatively quickly.

Grant Thornton are one of the most respected accountancy firms in the country, and are a volume processor of IVAs from their Belfast processing plant, but obviously have a busy workload at the moment.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk