letter about iva dividend

[mattbell1975]

i have recieved a letter today from my ip that says:

I am pleased to advise that on 24th january 2008, I declared a dividend of 29 pence in the pound on all admitted unsecured non-preferential claims in your agreement.

signed supervisor for ip.

on the second page there is a list of dividends or composition that says a dividend of 29p in the pound was declared payable on and after 24th jan 2008.And the creditors named below are entitled to amounts set opposite thier respective names.


Can anyone just explain exactly what this means???? any help would be nice. ive been in the IVA 3 years now.

Thanks

[mattbell1975]

Anyone???

[mattbell1975]

wheres all the IVA gurus when you need them!!!!!

[Adam Davies]

Hi
What dividend did your proposal state when you commenced your IVA ?
Regards

[mattbell1975]

erm ill have a look be 5 mins thanks

[aguise]

I had one at review and it now states the dividend has gone from 32p in the pound to 34p. I assume due to the overtime we have paid in.

Ang

[mattbell1975]

65p in the £ is the dividend to unsecured creditors

[mattbell1975]

on todays letter there is only 8 claimants with a total of £43,452.21 but on the agreement there was 11 creditors owed £61,101.56

does this mean that the number of people i owed money to havent all claimed it?

[Cybus]

Basically what this means is this ...

For every £1 that you owe your creditors, the Supervisor has paid them 29p. So if you owed a creditor £1,000, that creditor has been £290 from the funds that you have been paying to the Supervisor each month.

The list of dividends or composition will show you a list of creditors, the amount they have claimed in the Voluntary Arrangement and the amount that they have been paid in dividend.

It sounds as though this was possibly a first dividend. It would be expected that over the remaining two years of your arrangement, further 'interim' dividends totalling another 36p will be paid to creditors making a total return of the suggested 65p in the £

[mattbell1975]

no i still dont really understand it all!!!! if i did owe 11 creditors is it possible that some of them have never bothered claiming for thier share? if thats so my 65p in the £ will be a lot less like 12k less. what will happen to all this money will it go to the creditors who have claimed and give them a bigger dividend or do i just have to stick with my agreement of 65p in the £ then i have finished?

[Cybus]

on todays letter there is only 8 claimants with a total of £43,452.21 but on the agreement there was 11 creditors owed £61,101.56

does this mean that the number of people i owed money to havent all claimed it?

They haven't all claimed it YET

Before making a dividend payment to creditors, the Supervisor has to issue what is called a 'Notice of Intended Dividend'. This is declaring the intention to pay a dividend to those creditors who have claimed in the arrangement within a specified time period. This gives creditors who have not claimed the opportunity to submit a claim to the Supervisor by a specific date or they will be excluded from the dividend that is to be paid.

Failure to submit a claim, whilst excluding them from this dividend, does not automatically exclude them from future dividends. Each time the Supervisor wants to pay a dividend he has to go through the process of issuing the notice of intended dividend to those creditors who have not claimed.

If by the time the last dividend is paid, those three creditors have not submitted a cliam, they are effectively going to lose out. The funds earmarked for them would be distributed amongst your other creditors to the extent they are paid 100p in the £ (And possibly Statutory Interest)

But at the moment, the three creditors still have an opprtunity to submit a claim in the arrangement.

[Adam Davies]

Hi
Your creditors have the full five years to claim.In the unlikely event that they don't your dividend to the remaining creditors will increase
Regards

[mattbell1975]

thanks for the replies i am happy with that im paying more off of what i owed to the 8 creditors. over my 5 years i will pay £49k ish in monthly payments. my total debt was £61,101. it was agreed id pay a dividend of 65p in the £. which is by my reckoning 40k ish does this mean 10k is charges?

[Cybus]

thanks for the replies i am happy with that im paying more off of what i owed to the 8 creditors. over my 5 years i will pay £49k ish in monthly payments. my total debt was £61,101. it was agreed id pay a dividend of 65p in the £. which is by my reckoning 40k ish does this mean 10k is charges?

Quite possibly. You should be able to tell exactly what is proposed to be taken in fees by looking at the statement of affairs in the proposal.

[mattbell1975]

yeah thank you for all your replies i have all the paperwork but it desnt make easy reading for someone who isnt that way inclined!

I just cant wait until its all paid off in 2 years. might have some of my wages to myself!