Modifications

[ivoriva]

I had some modifications in my accepted IVA proposal that I didnt quite understand. In one sentence it said 'non preferential unsecured creditors must get at least 57p/£ or the IVA will be considered in default'. In another it said 'Unsecured creditors expect to see a 53p/£ dividend'. As far as I know the main figure in the proposal relates to the 53p/£ statement? So what is 57p/£ refering too?

It then goes onto say a minimum 44p/£ divedend must be achieved else the iva is considered to default!

[Sadsack]

ooooooooooo !!!!! Sounds like the left hand and the right hand are not communicating!!! At least I know for definate what the creditors require - 41p/£ but have no idea how much equity they require. I have 4 different amounts.

Methinks you and I could swap notes!!

[ivoriva]

Well, I would argue on the smallest figure being the most accurate. But me thinks it wont work out quite like that!

I didnt get equity release clause as my wife names only on the mortgage. They still managed to force me to pay 3 months extra to cover 'beneficiary interest' though!

[tracy.h]

Hi ivor let one of the technical experts advise before you sign just so that you understand .
Im sure it is fine.

Tracy

[accgroup]

Hello Ivoriva

If there is any confusion about your modifications you should speak to your IP and make sure they clarify things for you. To me this sounds like a number of creditors put forward modifications regarding the minimum dividend required. This should have been explained to you at the time of the creditors meeting, usually if they have requested a higher dividend than the one you originally proposed this is because they have asked for an increase in your monthly contributions or they know that the amount owed to them is less than the amount stated on your proposal. The best thing to do is speak to your IP and make sure they explain so you know exactly what is required.

Hope this helps


AccumaGroup - A large insolvency practitioner service based in Manchester.
www.accumagroup.com

[MelanieGiles]

Hi Ivoriva

Sometimes we receive conflicting modificatons from different creditors, so what seems to have happened here is that some creditors have said 57p and others 53p. In these circumstances, you will need to go with the higher offer - but as other posters have advised do check this with your IP to be sure you fully understand your commitment to this IVA. And if the dividend has been increased from that you proposed, do make sure you know which areas of expenditure have been adjusted so that you can budget accordingly.

It sounds to me as if none of this was properly explained to you on the day of the creditors meeting?

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

[ivoriva]

Hi Mel

Thanks for this advice. I do know the budget was re-calculated but I expected the figure of 53p not 57p. The only thing I can think of is one group wanted me to pay 3 months extra for beneficiary interest, which would amount to about £2200. I have just done some calculations, and actually those extra payments do make it exactly 57p presuming no fees are taken from it.