Background: We are currently into our third year of the IVA. A letter received from Grant Thornton stated that they would be extending beyond the 5 years to pay the outstanding debt balance.
Nature of dispute: After a detailed look-back we found that the IVA we agreed to was altered and agreed by us to pay at least 25p in the £. It was not explained to us when this alteration was added, that this would mean the timescale would most probably go beyond 5 years. In addition to this the estimated fees from Grant Thornton have increased from £8779 over the 5 years to £8808 at the 3 year anniversary. Again it was not explained at the outset that this sort of expense increase would or could occur, so again increasing the timescale needed to complete the IVA. Also with the extended time will come more expenses from the IP. I have written to complain stating these issues but have not received a response / explanation.
Dates of relevance: IVA started 02/09/2005.
first contribution 04/10/2005.
letter stating requirement to add 14 further payment to IVA 19/01/2009.
Date of complaint to Grant Thornton.13/03/2009
Contact names: IP Michael P Gerrard.
Assistant Jayne Moorman
Are you suggesting that your IVA was altered without your agreement at the original creditors meeting? You would have had to have agreed to creditor modifications put forward at that time (which should be confirmed by you in writing), and if the IP has assumed acceptance rather than sought your advice this is a matter that will have to be dealt with.
I would try and discuss this with your IP, who are bound to have details of the meeting on their file.
I am wondering why these disputes are being posted on the forum? It's not the first one we have had and they all follow the same lines.
Is it something to do with the Mediation hotline?
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'm presuming it's to do with the mediation hotline - if you click on the link there is a form to complete that follows the same format as these posts.
Personally speaking, I think a dispute with an IP should be dealt with off forum.
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
The IVA alteration was not completed without our concent/signatures the point was that we were not aware that the small alteration from the initial statement "approx 25p in the £" to the alterered statement "at least 25p in the £" would mean the IVA would extend beyond the 5 year point. in this case by at least 14 months.
I'm certain all the action taken are correct and legal but it may be prudent to warn people in the future that an IVA is not a definate 5 year timescale and that any additional dealings with your IP will increase your debt.
The only thing that should affect a proposed dividend and change it, is if clients do not pay the anticipated level of contributions, or creditor claims are eventually agreed at a higher level. If the IP does all the hard work in terms of verifying claims in advance of the proposals being presented, and you keep your side of the bargain in terms of paying contributins, there should actually be no need to extend at all.
Thanks for the reply. It seem from what you have said that if there has been no additional debt added by creditors then my IVA period should not be extended. As i could not log this dispute due to the website issue, I have contacted the mediation hotline by telephone to attempt to resolve this.
