Full and final balance problem

[jpj]

Im just having my full and final done up, and my IP has informed me that my main creditor has given them a redemption figure that is over £20,000 more than they claimed at the outset of my IVA. She thinks this might be a mistake but isnt sure at present.
Can a creditor backtrack from what they originally claimed for at the start of the IVA by such a large amount?
Thanks

[MelanieGiles]

Yes - if they are contactually entitled to claim that money. When was your IVA accepted and why has it take so long for the final claim to be received?

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[jpj]

My IVA was accepted in Sep 06. All monies I owed to them were included in my IVA,and I know they put in claims as they were my main creditor.
Im now just going into my 4th month of organising a full and final! (
I so wish I had met you years ago Melanie! (but Im sure a lot of insolvent men tell you that!) )

[MelanieGiles]

Sadly, I find that insolvent men are the only men who are interested in me these days!!!

Seriously, do you know what verification work was carried out by your IP prior to your proposal being put forward? I always independently verify the balances provided, to avoid things like this happening, but I am not sure all firms do as it can slow things down a little.

How does your IP intend to deal with this, as the original dividend may not now be achievable, and are you going to be expected to find additional monies for the full and final settlement you would like to offer?

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[jpj]

Oh Melanie..Im sure thats not true..although I guess being in insolvency doesnt lend itself to a stream of wealthy toy boys wandering into the office every day! LOL

I presumed my IP verified all the figures as there are exact amounts on my proposal.
I guess i will have to sit tight for a few days and see if a creditors mistake transpires or not!
If it is correct I think it may scupper my chances of a full and final ! My property is going down in value and my debts are going up! UGH!

[MelanieGiles]

Not necessarily - you just offer a lower dividend on the grounds that claims have come in at a higher level - although your IP may be reluctant to highlight this point if they failed to check the figures out properly.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[jpj]

Thanks Melanie.
The settlement figure my IP gave me was based on 3 more monthly payments,as im just entering month 4 will my next few months payments go to reduce the full and final figure she gave me, or will it just mean I end up paying more to creditors?

[MelanieGiles]

Yes - this should reduce the final figure.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[jpj]

One other question Melanie.

When I pay over my F+F payment, Is my IVA considered concluded then,or only when the certificate actually comes through? i.e if I won the lottery the week after I had paid over my full and final cash settlement would I still have to part with the dosh?
Some people mention waiting months for a completion certificate (and as my IVA took 6 months to organise and my F+F settlement is in month 4 without a meeting organised, I fear waiting years for a completion certificate!)
Thanks
JPJ

[MelanieGiles]

The IVA is concluded when your supervisor files his annual report and advised the Registrar of Individual Voluntary Arrangements - and if you did receive a windfall during this period you would have to hand it over to the extent of the debts outstanding.

If you keep pressing your IP for a conclusion, that seems to ensure that things are done in a reasonable timescale.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[jpj]

I E mail every 10 days !

[MelanieGiles]

E-mail can be easy to ignore - although it is not professional to do so. I suggest that you now start making phone calls and insisting that someone puts you through to your IP or else you will make a complaint.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[jpj]

Thanks Melanie. So if my annual review is in April and I pay my F+F in May, I have to wait nearly a whole year for it to be concluded?

My main creditor has been messing my IP about! firstly not bothering to give my IP a figure,then after my IP threatened to exclude them they came up with an incorrect figure..it seems to go on and on!

[MelanieGiles]

There is no set timescale for this - but a whole year does seem rather a long time. Personally I would make sure that I had all claims formally agreed before proposing a variation for one of my clients.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[jpj]

Finally got my IVA full and final meeting organised for the 21 March... thank you for all your help and advice over the last year odd Melanie, and all other forum members. Without this site I probably wouldnt even know what a full and final was!!!
will start crossing everything nearer the time!! )