If the stress dont kill us

[ian_k]

My wife and I ran our company for 14 years when a series of unfortunate events forced us into liquidation in January 2006. Between us we were left with guarenteed loans, credit card bills and other personal debts of well over £100,000 pounds. On the plus side of things the premises we had operated in were in our names and not the businesses which meant we had an asset which give or take a thousand or two was valued and put on the market for roughly the amount that we owed out. With our health and sanity spinning downwards our accountant advised us to seek advice in the hands of a company called Tenon. They advised us into an IVA, the terms of which were that upon sale of the premises everyone would get paid back 100% and if there was a shortfall then we would sell our house and give up any equity. (House value = £100,000 Morgages = £70,000) At a low ebb We accepted this and the IVA was approved. Our Time is now up and Tenons are asking the crediters if they will allow us another nine months to sell the building or would they prefer we become bankrupt. After a year of trying to keep a roof over our heads on benefits (kensington are dreadful but HSBC have been very helpful) We are now facing disaster again. The Estate agents trying to sell the premises want to reduce the price to try and speed up the sale which would mean going below the point at which everyone gets 100% and being forced to sell our home. If the stress dont kill us I think a heart attack can't be far away. Sorry It appears as if Im rambling on a bit, my question is Have we been badly advised and is there anything we can do?
Thanks,
Ian.

[freelili]

I hope that one of the experts will along shortly to advise you can I just ask, is your IVA based on a full and final settlement of 100 per cent based on a future sale which was time limited?

I am not an expert just another person in debt

LILY

fly me beyond the distant star, I will wish on tonight to see you smile just once more to know youre there.

[ian_k]

Thanks Lily,
When the IVA was set up, Tenon Predicted that The premises would sell quickly because it is in a development area, we agreed that this should be the case. They never thought it would get to the first year review without selling. If it had sold then all the creditors would be paid 100% of what we owed them. At the time the creditors were told that bankruptcy would only get them something like 70% (I think). I dont know how they got to that figure.

Within the last year a park renovation scheme was brought forward by 2 years meaning that for a good 7 months our building was next to a building site. We think that this has delayed interest in the area as a whole unfortunatly repercussing on us.

As this 12 month review was not anticipated Tenon have put together the review letter and also a returnable letter asking all the creditors to vote on whether: option 1 - extend the Iva for a further 9 months or: option 2 - The Iva has failed and as there are no funds could somebody agree to pay the bankrupcy fees on our behalf.

Tenons finish off by recommending they elect for option 1.
The actual review date is 27th april.
I hope this is not too confusing.
Ian

[freelili]

Thanks Ian

I asked because I have a house to sell and was advised to do this kind of IVA, I am scared just in case so I am holding off for a while. I really hope that this works out for you. I really do not know where all the experts are, I am sure they will answer you though.

LILY

fly me beyond the distant star, I will wish on tonight to see you smile just once more to know youre there.

[Adam Davies]

Hi Ian
I think common sense will prevail and your IVA will be extended.I can,t see any creditor wanting to pay out for bankruptcy and a smaller dividend in favour of waiting a while and getting most of their money back.
Good Luck

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

[ian_k]

Thank you Andy for sparing me your time and responding. It would seem that my questions are unanswerable. I'm probably asking the wrong questions or more probably all is going to be OK.

Ian

[MelanieGiles]

I do not think that you have been badly advised, but your IVA has gambled on the property market and you have not been able to sell. I am sure that your creditors will see sense and accept the extension, but if I were them I would want to see property valuations and advice from your selling agent with regard to a realistic timescale for sale. You have to be prepared to drop the price, and this may well then effect your residential property. Creditors will not expect to see an openended IVA.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk