I have entered into an IVA. Employee is trying to sue me.

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Maddie

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Post by Maddie » Mon Sep 19, 2011 7:53 pm
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I own a very small buissness and one of my ex employees is trying to sue me I have entered into an IVA so what happens if she wins as she only wants money?
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Shining

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Post by Shining » Mon Sep 19, 2011 8:36 pm
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Hi Maddie and welcome to the forum, I'm not sure of the answer to this but will keep it bumped up as another poster may be able to give you advice. x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
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ginger3232

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Post by ginger3232 » Mon Sep 19, 2011 8:47 pm
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Maddie - dont know why they want to sue - but do you have Business/liability Insurance in place ?
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Maddie

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Post by Maddie » Mon Sep 19, 2011 9:06 pm
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ginger3232 wrote:

Maddie - dont know why they want to sue - but do you have Business/liability Insurance in place ?
Hi Ginger
It was a sackable offence for gross misconduct and she is trying to sue saying she did not do the offence thing is she has a solicitor on no win no fee i am defending myself as i am in an IVA so got no spare cash.my question is if my money is taken for my IVA and she only wants compensation not reienstating how can she be awardered money when there is none?
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ginger3232

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Post by ginger3232 » Mon Sep 19, 2011 9:13 pm
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Sorry Maddie to hear about your situation - reason i ask about the insurance - that sometimes it will cover legal fees /advice - also maybe worth checking your own personal home insurance in case you have any cover built into there.

Hang on here on, one of the experts(i just an ex IVAer) :-) may be able to point you in the right direction and set your mind at rest.
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kallis3

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Post by kallis3 » Mon Sep 19, 2011 9:32 pm
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I'd have a word with either CAB or get a free consultation with a solicitor if your IP or one of the experts can't help.
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
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Maddie

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Post by Maddie » Mon Sep 19, 2011 9:39 pm
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kallis3 wrote:

I'd have a word with either CAB or get a free consultation with a solicitor if your IP or one of the experts can't help.
I have already had a consultation with a solicitor but if i need any more info its pay up time
All I need someone to answer is how can someone take you to a small claims court for money when you are already in an IVA there is no money for then to have?
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kallis3

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Post by kallis3 » Mon Sep 19, 2011 9:42 pm
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I have no idea Maddie, wish I did. What did the solicitor say?
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
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Maddie

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Post by Maddie » Mon Sep 19, 2011 9:50 pm
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kallis3 wrote:

I have no idea Maddie, wish I did. What did the solicitor say?
Once they new I was in an IVA they said speak to your IP which I did and they said they would not be able to get anything because of the IVA, but their solicitor says different because the IVA was set up before,I know this is a hard one but at the end of the day if they did get and its a big if any compensation where does the money come from as there is none?
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kallis3

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Post by kallis3 » Mon Sep 19, 2011 9:56 pm
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I wish I could offer some advice but I really have no idea.

I presume you have proof of this offence?
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
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MelanieGiles

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Post by MelanieGiles » Mon Sep 19, 2011 10:35 pm
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Was she dismissed prior to the IVA or after it had been accepted by creditors? How much is she claiming from you?
Regards, Melanie Giles, Insolvency Practitioner
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Maddie

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Post by Maddie » Tue Sep 20, 2011 8:54 am
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Hi Melanie she was dismissed after the IVA and her solicitor has proposed a sum of £8000 ie loss of earnings,unfair dismissle ect she now knows I am in an IVA but says it makes no difference!! well surley if the claiment only wants money and the IVA creditors are taking it if there was a sum of(which there is not)that amount they would be entitled to it first would'nt they?
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Maddie

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Post by Maddie » Tue Sep 27, 2011 5:14 pm
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MelanieGiles wrote:

Was she dismissed prior to the IVA or after it had been accepted by creditors? How much is she claiming from you?
Hello

The IVA was approved before she was dismissed. Her solicitor is saying that the IVA offers no protection, however, if the IVA company are in control of my finances what happens if she is awarded any compensation ?
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MelanieGiles

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Post by MelanieGiles » Tue Sep 27, 2011 11:32 pm
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Her solicitor is correct - in that this is a post-IVA liability and therefore cannot be included in the IVA. Do you accept liability for unfair dismissal?
Regards, Melanie Giles, Insolvency Practitioner
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Maddie

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Post by Maddie » Wed Sep 28, 2011 11:05 am
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MelanieGiles wrote:

Her solicitor is correct - in that this is a post-IVA liability and therefore cannot be included in the IVA. Do you accept liability for unfair dismissal?
If the IVA has control of finances, where would any compensation come from? It's confusing.

No I have not accepted liability. The reason for dismissal etc is strong with strong supporting evidence (yet to be disclosed to other side's solicitors).

However, as written statements were not shown to respondent at disciplinary (I was advised by acas to proceed without giving employee a copy, as the other staff members did at that stage not want to be identified), I have been advised that she may have a case for unfair dismissal although my arguement would be that the outcome would have been the same whether she was provided copy statements or not (a solicitor who was advising me quoted a similar well known case).

She was dismissed for gross misconduct. (Basic award for unfair dismissal is one weeks pay, however she is claiming loss of earnings, hurt feelings etc).

If she had not committed gross misconduct she would not have been dismissed.

I understand what they are saying about not being able to include her into the IVA as a creditor, however, the fact remains that I am in an IVA, and any money is paid to my creditors. If the pot is empty, so to speak, she is claiming for something that just is not there. Your comments are very helpful, thankyou.
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