eversheds

[allan.f]

Posted - 24 February 2007 : 09:14:20
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My chairman's report mentioned Eversheds.Does anyone know who or what they are?

[ivamole]

Eversheds are a firm of international lawyers but, in the context of your IVA, they are probably named because they also act in the UK on behalf of Max Recovery (a U.S. company) who actually buy debts.

In the past Barclaycard, for example, have sold on their bad debts in volume to Max Recovery at a discounted value and Eversheds (acting on their behalf)seek to recover those debts at a higher value to achieve their profits e.g. if Barclays have sold debts at 20p in they pound, they might see a target recovery rate of 30p.

Anyway, that's my best guess - but others might know more.

[MelanieGiles]

That's absolutely correct - and I find Eversheds one of the most commercial firms of "voters" out there. They are usually happy with the proposals presented and, if not, will generally be prepared to negotiate.

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

[Skippy]

I had a letter from Eversheds a couple of days ago - how can they 'buy' one of my debts when an IVA has been agreed?

Onwards and upwards!!!
View my blog at: http://skippy13.blogs.iva.co.uk/

[ivamole]

It's in the small print of your original debt. There is a sizeable market in bad debt and,in effect, your original creditor has now sold 'ownership'of that debt to someone else.

If the debt has been sold to Eversheds you will have no problem and it will not effect your IVA if it has already been agreed. Eversheds are a highly reputable company operating at the 'top end' of the secondary debt market. The problems arise at the 'seedy' end where loan sharks and other dubious lenders sell debts on to doorstepping enforcers.

Raises an interesting accounting question though. Do the bad debts purchased by recovery companies show on their books as assets or liabilities ?

[MelanieGiles]

There is nothing to stop anyone from transferring an asset to another party - and this is the case with the assignment of book debts which has actually been going on in the UK for many years.

The purchase of bad debts would be assets in the books of the purchasing company. Can't quite see the logic of them being liabilities?

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

[ivamole]

That was a joke (sort of).

Debt are a liability if they cannot be recovered - or repaid.

[ivamole]

allan f. One question. I'm curious to know how the Eversheds name on the chairman's report came as a surprise. Weren't you present - or in contact by telephone - for your creditor's meeting ?

Surely your IP (or the chairman) went through the creditor's votes so you could agree that they were in fact creditors - or just to simply tell you who had voted and how ?

I can't understand how or why there was a surprise name on the list of (voting) creditors ? Or maybe they were just referred to as if they were the original debtor.

Just a passing thought.

[allan.f]

Hi ivamole,
No I wasn't at the meeting (is anyone,is it a real meeting?)The first I heared of any results was about 2 hrs after when I was called by Wilson Phillips to say that the IVA was accepted.Then 2 days later I received a copy of the chairmans report.
That's when I noticed eversheds named not as a creditor but in the list of conditions of the IVA.
Allan

[ivamole]

Perhaps someone else can confirm this but I thought that in an IVA the debtor has to either attend the meeting or - at the very least - be in contact by telephone in order to approve any modifications that might be submitted at the last minute. The IP cannot agree these on your behalf or in your absence.

I don't want to alarm you but IVAs are not rocket science and the procedures - the steps that have to be followed - are all set out in SIP 3 i.e. the Statement of Insolvency Practice relating to Voluntary Arrangements.

Copies are readily available for download from R3. The exact URL is:
http://www.r3.org.uk/uploaded_documents/56670_SIP_3.pdf

These are the procedures that all IPs are required to follow by their professional bodies.

Maybe no one bothers about these things any more and maybe no one will rock the boat and my knowledge on this may be out of date so it would help to know if others have any thoughts.

[MelanieGiles]

To be absolutely correct - the Chairman's Report should not have detailed the creditors' representative's name - but should have referred to the creditor itself. Then this would have made more sense to you.

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

[Skippy]

No, IVA's aren't rocket science, but when you are in debt you are often scared as you are being hassled and in some cases threatened by creditors. You reach out to the first person who appears to be able to help you, and you often don't ask the right questions. Yes, you read the literature, and sometimes it might not make any sense but you are so desperate to sort your life out that even though you may not understand what you are reading you sign anyway. After all, the person advising you has your best interests at heart, yes?

Many of us on here have been in that situation, and for some the IVA has worked, and for others it hasn't. My IVA is failing because I was desperate - I agreed to a higher amount than I could afford and 4 months in I am struggling.

Onwards and upwards!!!
View my blog at: http://skippy13.blogs.iva.co.uk/

[ivamole]

Skippy, I wasn't criticising people in debt when said IVAs aren't rocket science. Believe me, I've been there and I understand the circumstances and I've spent the last three years fighting an incompetent and dishonest IP as a result.

My criticisms were aimed at IPs who fail to follow the fairly straightforward procedures for setting up an IVA. They only have to read SIP 3 if they're not sure.

But they get away with it. They're rarely (if ever) disciplined for getting it wrong because debtors are generally uninformed and therefore can't complain and creditors - once they have an agreement of some kind - won't rock the boat.

[Skippy]

Sorry ivamole, I think I'm feeling a bit over sensitive at the moment! I know a lot of my current problems could have been avoided if I had done things differently, bu then again, hindsight is a wonderful thing!

The IVA industry needs to be regulated, as this is the only way that incompetent IP's can be removed from the system. I must stress that I have no complaint about my IP (this is my second as the first one left) - once he knew I was struggling he phoned me and talked through my options with me. He hasn't tried to influence me either way. Unfortunately that is often not the case - there are far too many stories on here where the IP is only out for him/herself and IVAs have failed. If you don't mind me asking did you conplete your IVA?

Onwards and upwards!!!
View my blog at: http://skippy13.blogs.iva.co.uk/

[MelanieGiles]

IVAmole

The majority of Insolvency Practitioners are fully compliant with ALL statutory and best practice procedures. We live with the Statements of Insolvency Practice by our side each day, and rest assured if we fail to comply with something the regulators are on us like tons of bricks. I can assure you that regulators regularly discipline IPs who do not comply - I do not know where this comment "they're rarely (if ever) disciplined" comes from.

To slso state that "debtors are generally uninformed and therefore can't complain" is without substance. You obviously relate to your own experiences with a particularly bad IP, but the way you post is suggesting that all IP's fail to observe statutory guidance and best practice. I can assure you that the majority of us absolutely do not.

What do you mean by the comment you make "Maybe no-one bothers about these things any more?"



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