I have a court order against a man for £9500.This order is for costs from a court action.This man has now got an Iva,I was never notified that he was appling for one and as he owns eighty properties it is now with an administrator.I have never received a penny in payments,never agreed to this or had the opportunity to decline this arrangement.the badministrator has started sorresponding with my solicitor who was aLSO NOT ADVISEED UNTIL AFTER THE EVENT AND THIS HAS RUN UP A BILL OF £3500 SO FAR.wHY HAVE i NO RIGHTS AND SHOULD i NOT HAVE BEEN NOTIFIED.How can I find out what is happening without paying a solicitor and do I have to accept this IVA as I would rather wait for my money than get nothing at all.I thought the scheme was for vulnerable people and had certain rules not for flash boys with eighty peoperties that suddenly decide they dont want to pay their bills
You certainly should have been notified of the IVA proposal, but the fact that you were not does mean that you are bound by the terms of the arrangement under current insolvency legislation.
If you are a material creditor - ie more than 25% of this person's overall debt, you might want to consider an application to Court to void the IVA on the basis of material irregularity, but depending on the dividend on offer, you may simply decide to join in the proceedings and get paid your dividend alongside the other creditors.
Would there be any reason why the creditor would have been motivated to exclude you, and are the properties owned by himself personally or a company under his control?
You should get a copy of the Proposal from the IP and check and see whether or not you hold 25% or more. Let us know
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
