Hi
I''''m getting a bit worried! We are on month 50 of our 5 year joint IVA. We''''ve just had the 4th annaul report back, I''''ve gone over the figures and they appear a little out.
My first question, there is a difference on the amount of debt on on the proposal and the creditor agreed claims of around £1000. I don''''t understand why this is as our IP contacted all our creditors at the start of the IVA to obtain the balances, however on the first anniversary of the IVA some of the balances had increased and a couple had gone down. However overall there was about a £1K increase. Our proposal estimated 32p/£ with a creditor modification that anything less than this would constitute a default. So does this mean after making 60 payments at the agreed amount we will still be in trouble?
My second question, we had a variation meeting in February this year (we wanted to reduce payments while my partner was in hospital and not working). It failed due to student loans company not agreeing (they had a 44% share of the debt). I was told by IP the meeting wouldn''''t cost me anything extra as it was included as part of the supervisor fees I already pay (I did the varition based on advice given by the IP). I''''ve noticed on my annual report that the fees for the variation meeting were £500 ex VAT but these fees along with the reduced IVA contribution were ''''not approved'''' by the creditors at the variation meeting, does this mean the £500 will not be charged and would only apply if the variation had been accepted. I should add that we had to borrow money from my parents to pay the IVA while my partner was ill, so we''''ve never missed any payments and remain on the original agreed amount.
I''''m so looking forward to getting rid of this IVA next October, what a struggle its been, but I would be devastated if we still had to pay beyond our agreed 60 months.
Hi
If your IVA agreement stated a minimum return of 32p then you will have to achieve this. However a 1k differebe in the overall debt balance will make very little difference and I would guess that, at the worst, you may have to make one extra payment.
If the IPs fees for the variation were not agreed by your creditors then this will not be taken from the "pot" that you pay in.
Have you paid in any extra monies during your IVA term such as overtime or bonuses ?
Regards
Hey barryds, welcome to the forum. You are so close to the end, I really hope you sort this out. Please keep posting as you will get good advice and support from the forum.
I hope you get things sorted, you are so close to finishing now. Keep posting and let us know how you get on.
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 balances obtained by your IP prior to the arrangement being approved may have been a little out of date. It is the balance at the actual time of the meeting that counts and this may go up or down prior to the meeting.
With regards to the additional Supervisor's fees charged for holding the variation meeting, I do not entirely agree with Andy. The fact that the fee was shown as drawn on the receipts and payments account prepared with your annual report would suggest that the Supervisor has taken these fees. Whether they were entitled to draw these fees will depend very much on your original proposals. If there was a clause in the proposal allowing the Supervisor to make a specified charge for a variation meeting and this was not modified out by the creditors at the meeting, then there would be no need for the creditors to approve this fee at the variation meeting and the Supervisor can draw the fee without further approval. If there was no provision in the proposal for such a fee, or the creditors did not agree to the fee at the original creditors' meeting then your Supervisor will have to repay the fees into your arrangement.
Whether or not you will still meet the minimum dividend will really depend on your total level of debt (£1,500 will be insignificant if your debt is say £50,000, but will make a big difference if it is only £15,000 for example).
I would suggest speaking to your IP and asking them for a projected dividend based on the payments you have made to date and the fees drawn by the Nominee and Supervisor to date, and assumiung that your payments to the arrangement continue at the current rate.
As Andy says, the worst that can happen is that you need to make one or two more payments into the arrangement.
Well done on getting so far though - you are nearly free.
Kind regards, Elizabeth Pywowarczuk, Insolvency Practitioner.
If you would like me to advise you about an IVA and if appropriate propose one for you, please visit my website at www.liberta.uk.com
