IVA TERMINATED

[MelanieGiles]

Andy - just so that you don't confuse Sandra, she needs to ask for the Supervisor's Final Report not a Chairman's Report. Sorry to be picky, but seeing the sort of relationship Sandra seems to have had with her IP, then I suspect that if she asks for a Chairman's Report then that is what she will get.

It is curious that she does not have a copy of the report, as the IP is duty bound to provide one. It is also odd that creditor claims increased so significantly - which suggests a proper job was not done in the first place.

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

[Andy2]

Hi Melanie - you're absolutely right! [:I] I imagine the final Supervisor's report SHOULD be sent to everyone who was involved in the IVA and will no doubt mention that the amounts due are not recoverable, but as Sandra has now been pursued by some of the smaller creditors the IP might not have sent it to anybody. By the way, do they still use the term "Chairman" in the Nominee stages or am I being totally non-PC - is it now "Chair" or "Chairperson" ?[8)]

[sandra]

Have received Supervisors Final Report on the Termination of the Voluntary Arrangement.Basically says that properties did not achieve original valuation and there were no excess monies to pay anyone other than secured creditors. States that monies owed to me were unrecoverable. Receipts and Payments Account showing nil balance.Re unsecured creditors just states that my estimate was as I said approx. £140,000 short of claims he has received. No explanation of this and not sure how it could have occurred as I gave him everything.

[Andy2]

Well at least there is a report although it does sound rather cursory in nature. I realise it might say "nil balance" but does it say anything about incomes and outgoings in relation to your IVA. You need to establish that secured debts were satisfied in full and you really do need to know where the £140,000 EXTRA claims are from - I mean this is far from an "insignificant" amount. The statement about "monies owing to you are unrecoverable" is too easy to make....did they make any effort to gain any return from these ?

[sandra]

Secured debts were not satisfied in full and looks like there was deficit of approximately £6000. No idea what he did, if anything, to recover debts to me. Basically I gave him all the outstanding company invoices and list of monies owed to me by chap who conned me into going as sole trader and then put everything in my name. I know it was mentioned in early days that as soon as debtors found out going into IVA situation that they would no doubt make counter claims against work company carried out but it was felt that something at least would be able to be clawed back. As I have already said one of the properties was auctioned and realised £62,500 and in the early stages of this property going on market an offer for £90,000 was accepted by the estate agents. This was couple who had survey and all done. This property was back on market two weeks after sold at auction and sold for £88,000.Just want an end to all of this because as you can probably appreciate, when it all blew up originally my health suffered greatly and now looks like I going to have to face again. I also feel really bad that creditors have lost out as well despite me giving up everything I had to try at least to recompense them in some way.

[Andy2]

I really feel for you and that is why I think BR is a viable option to finally put this behind you. You have not got any closure on this whole situation - you tried to make amends via an IVA which has failed but that leaves you in a precarious position of still having your original creditors - or whichever company they have sold the debts to - approaching you again. True, BR is going to result in you having to "rake it all up" again, fill in the forms, have an OR interview etc. etc. The alternative is to "let this ride" and in reality - as your IP suggests - the creditors have long since said goodbye to any return. It does come down to personalities - I would be scared of going BR too - but you need to consider your health. Debt destroys health and you have been through the mangle enough. True you might have to go through the mangle a few more times (in BR) but at least there will be a definitive end to it in a set amount of time.

[sandra]

Thanks Andy. I truly feel that BR is now my only option. Im not young and the thought of creditors chasing me again and now having nothing to offer them is not a prospect I relish. Looks like having to bite the bullet and go for it. Thanks everyone.

[Andy2]

Well you don't have to do it straight away but do keep it as an option, probably the BEST OPTION for you. You will probably need to save for the fees first and this will give you time to get used to the idea. In the meantime I would continue to gather as much information as you can about your financial sitution and the conduct of the IVA ; true it means raking over painful memories at your position but at least you will have it all do hand when or if you go for BR.