Just a few questions if I may.

[zacm]

Hi there,

I have been under IVA for just over 2 years and have never missed a payment. On the last review (end of year 1) I increased my contribution in line with income.

I received my second review request today which was fine save for the following paragraph in the cover letter:

"I draw your attention to the minimum dividend of 41p / £ must be achieved. You will see from the attached report that whilst not all creditors claims have been received and agreed, it appears creditor claims have come in higher than expected. An additional sum of £1100 will need to be brought into the arrangement to achieve this dividend."

Just a few q's if I may.

I thought an IVA (as far as the extent of my debt is concerned) was agreed and fixed at the point of inception 2 years ago, is this not the case? The letter suggests that the increase in claims has come from creditors that participated in my IVA process and not the 2 that didn't show up, so how can the figures change now?

Why has it taken over two years for my IP to notify me of this increase in claims?

Is it possible that the other two creditors who did not participate can make claims at any point in the remaining 3 years that will also 'come in higher than expected'?

For my money this runs against everything I thought an IVA is about so any advice would be extrmely welcome.

Many thanks,

Z

[OPTIMIST12]

Hi zacm -

I cant answer your questions but would like to say that the Minimum Dividend clause / modification appears to be a really important point where creditors have not lodged formal claims prior to the Creditors Meeting.

I have estimated an increased figure that may be roughly accurate in my case and will be trying my hardest to cover this by chasing overtime etc to make extra funds available to add to my original planned total payments.

It would be great if all creditors lodged their claims pre- meeting to give the debtor a definite figure to work with.

Good Luck!!

[jpj]

Well at my first review creditors claims were £11k LESS than my proposed IVA (and ALL creditors had submitted claims!) so I guess it works both ways..but whilst you were asked for more money, I wasnt asked to pay less!

[Sadsack]

I have been in an IVA for a year now - but circumstances have changed due to an unreasonable increase in IVA payments - I am now petitioning for BR. I too have one creditor who has to date not put a claim in although it is listed on the IVA.

I don't have a definitive answer, but did ask the question some time ago (cannot remember the thread) and Cattulus replied (if I remember correctly) that creditors can put a claim in anytime.

I am sure one of the experts will be along to give you the correct information.

Sue

Ho Hum! Think I'll bang my drum!

Read My Blog
http://sadsack.blogs.iva.co.uk/

[OPTIMIST12]

Thats a very interesting post from jpj - I did not realise that claims can go down as well as up!! I can understand - and it is fair enough - that the amount owing normally increases between the figures put forward at the proposal and the date of the creditors meeting by virtue of interest and charges. That is inevitable. But what a great surprise that must have been to hear that your total debt had gone DOWN by £11000. (Even if it did not lead to a reduction in payments!!!!).

[jpj]

Sure was!! although I have never asked why it was less!..let sleeping dogs lie me thinks!
Although it doesnt make a difference on a monthly contributions basis it does make a full and final settlement easier!
My thoughts do go out to those who find their IVA is higher than they thought...an IVA is a winding path with many ups and downs along the way!![B)]

[Adam Davies]

Hi Zacm
It is not unusual for claims to come in higher than expected,Your IP will contact all creditors prior to the meeting and ask them to prove their debt but not all reply.However they still have the full five years,or until the IVA is concluded to lodge a claim.
They can,t increase the claim once lodged and also can,t add interest and charges from the point of the original creditors meeting and acceptance.
You can add the extra at the end of the five years if overtime/bonus payments have not made up this shortfall.Also if the two creditors that have not lodged a claim so far do not respond at all then this will increase your final dividend,as your IP would have made provisions for them in the original calculations,and may push it to beyond the 41p withot you having to make ay further payments
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[ray_a]

This has been a problem with my IVA as some creditors have not proved their debts! I have been told mine will be completed sometime next week and will let you know from a practical point of view what happened!