Post
by
Bob » Mon May 28, 2007 2:32 pm
Good day everyone. I simply canno believe my luck in finding this website. I have seen more good sensible advice and learned more about IVAs herein the last day and a half than I would ever learn from my IP.
Here is my story. I was very proud to have set up my own training company in 1999 and was delighted with it's moderate success over the folllowing years. We delivered professional training in First Aid and other related Health and Safety areas. The great thing about my training was to learn time and again that as a direct result of the training recieved, peoples lives had been saved. There are people alive today, directly as a result of the training someone had from my company. Of course I was proud.
I got to the stage when it was obvious I needed to expand and I took on an empty unit, converting it into a dedicated training centre. That unfortunately was my downfall as the cost of the conversion had been grossly underestimated and all my resources were stretched too far. I used up all of my own personal resourses even to the point of cashing in my endowment policy and having to stop all other direct debits etc, icluding life insurance etc in an attempt to stay afloat.
I engaged the services of a businss strategy consultant (let's call him Tom - not his real name obviously) to advise me. His early assessment was that my company had the infrastructure of the training establishment and a decent portfolio of training programmes to be successful, but that it lacked the capital to meet ongoing payments and to effectively market the busiess. Had that been avaiable then the company had a very bright future. Tom's responsibility was to progress a development plan to raise the capital but somehow managed to drag his heels over the ime he was with me, fobbing me off with plausible excuses. Finally came the crunch when he had a meeting with a financial recovery consultant who both agree with grave concern on their faces that the only way forward was for me to go into voluntary liqidation. This happened in August 2004.
By this time my personal position had spiralled downward and as I had given personal guarantees against several of the finances used to carry out the development of the training centre, I was also pointed in the direction of IVA. The IP was introduced to me by the above mentioned Financial Recovery Consultant. Up to this point I had never even heard the term IVA and to say that I walked into it blindly would be a huge understatement - I knew absolutely nothing at all about what to expect or about what to avoid. All seemed to go quite well and Tom assured me that he would endeavour to resurect the trainig company and retain my services as training manager at a salary of £30,000p/a. I had the usual meetings with my IP whose only non financial comment to mee was that I had been stupidly naive. He then set about arranging the proposals and agreed to exclude the family home as I have five children (three of whom are currently in full time education)and on the basis of my promied £30K salary, I agreed to a monthly £500 to the IVA. At the final meeting hovever, one of the creditors insisted that my home be taken into the equation and that in the final year of the IVA I would have to find the equivelant of 50% of the equity. Ihad to pay extra tio have a valuation done on the property but the creditor refused to accept it as true, relying instead on figures poduced by the online 'Down your Street' service. Never oncedid the IP challenge the motion and rubber stamped the amendment to the proposals, without even explaining to me what was happening.
I recall sitting in his office feeling absolutely awful, completely bewildered whilst decisions about my future were being made without reference to me. So shell shocked was I,that I simply signed everything I was told. Somehow, niavely, I expected the IP to act to some degree on my behalf. I understand the legal position of an IP in so faras he acts on behalf of both creditor and debtor, but let me assure you I never felt more alone in my life. If you askd me an hour after I left that meeting, I could not have explained to you just what had gone down. But I did know that my immediate futere was no longer in my own hands.
The training company was resurrected under a different name (I now realise it was phoenixed)and much of the funding that should have gone to my former creditors under the bankrupcy was in fact hived off to become setup capital for the new company. So with money owed to me (and my creditors) now paid into Tom's new company, set up in the nice new training centre that I started and went into bankrupcy and IVA for, I was offered an post of training manager. I never did get that £30k and for the first 18 month or so I averaged about £1000 per month. Pressure on Tom raised the wage by the introduction of a bonus system.
On the personal side, I have felt terrible over thr 4 years or so that this matter has been going on and for two years, I literally dod not have more that 2 or 3 hours sleep at night, on any night. I contemplated suicide on several occassions, though I know I would never do it, it has sometimes been the only possible light at the end of the tunnel.
My blood pressure has rocketed out of all proportiion and notwithstanding the medication (which I can't afford)throughout all of 2007 has been at 'severe hypertension' levels. How long it will last before I have a heart attack or a stroke I simply do not know. but I do know that either is inevitable.
My IP has written to all creditors suggesting he stops my critical illness insurance as ot does not reflect good value for money for the creditors. In the event of my becomming seriously ill or dying then he will convene a meeting to discuss what to do. If I felt that he would recommend settlement in such event I would wholeheartdly agree with him as I could really do with the £62 per month I pay out on that insurance (perhaps I could pay to a life policy or endowmwnt to cover my mortgage)but without such indication I have had to say no I have asked him to let me write to all the creditors pointing out my prediciment or indeed for me to be allowed to go back to the court for a review of the current situation and I await his reply. I am sure, like previous replies from him it will be burusqe, rude, to the point and will say, 'you agreed the arragement, you keep to them or I will bankrupt you' Indeed I am thinking just how bad would tha be - be now be bankrupt. I know I've paid £6000 per anunm and am in my 3rd. year of 5, but in year 5 thereis no way that I will be able to raise my 50% of the equity, other than by illegal means(bank robberies etc (joke) or by winning the lottery.
The fabric of my home continues to deteriorate with windows needing replacement, complete re rendering, there is a full length crack in my kitchen that we can see daylight through etc. and indeed it will be even worse in an other two years time. The greatest worry I have with all of this is the prospect of this potential forced sale over my family's head. That is the single biggest stress factor that retaind my blood pressure at such dangerous levels. If I could re negotiate the terms to exclude the equity, that would be paradise.
Incidently, I left Tom's training centre at Christmas as I could no longer stand his lies and deceit and am now working as a free-lance trainer but I do need more engagements so if you know any body looking for training....
I have not been able to open a business bank account so I know I am oing to have difficulty with the tax man when he wants to see my returns as all my earnings are paid into my wif's and my joint personal account - What else can I do about it?
I am pleased to learn that Tom is currently being investigated by the police over his effectively 'stealing' through fraud an other business. Look like I was not the only one to get stung by him
