'REJECTED BY DEBTOR'

[caz]

Please can someone explain the meaning of this phrase. I have been looking at a document entitled 'modifications proposed at the meeting of creditors' and the first four clauses of 17 are followed by this statement. I am paticularly interested in point 3 which includes;'50% of all income or revenue increases must be paid into the arrangement.(REJECTED BY DEBTOR)??? What does this mean? When I took out this IVA in 2005 the proposal was supported by 91% of creditors.
Also my current situation is that I have had a pay increase and written to my IP and as yet have not been informed what to do next.Do I immediately start paying more or wait until the review. Most of the increase wil go in higher rental costs and as suggested my Melanie I referred to this in my letter. The trouble with the company I am with is that the advisors often give very different answers to questions that is why I value the information provided on this forum.[:)]

[chris.g]

Hi Caz, the debtor is you. The companies are creditors. Maybe you refused to accept these terms and that's why it states this.

[ianmillington]

Hi Caz

I would suggest that the modifications to which you refer were submitted by the creditor who had 9% of the vote. Rejection of the creditors mods would then lead to an effective rejection vote by the creditor concerned. Of the other 3 mods that were rejected, one of them wouldn't happen to be a restriction of the Nominee/Supervisors fees, would it?

Ian

[caz]

Actually no Ian it just states that fees over 4.5 k must be approved by the creditors. I am stil unclear what this means to me if the modification was rejected does that mean i dont have to pay the 50% of all Increases into the arrangement?.....from 'ever hopeful'!
Seriously what do i have to do with my increase wait until the review in a few months time or start paying the extra now or save it up and hand over at the anniversary.Will I have to hand over all of it even though my rent will be increasing on 1st May.Caz.ps thanks for the prompt reply

[chris.g]

I would contact your IP and discuss it with them, they will know for definate and will be able to let you know,
x

[ianmillington]

Hi Caz

I would echo the sentiments of Chris here - speak to the IP before the event and find out how he/she views it.

Ian

[caz]

Thanks for the replies. I wish it was that easy, unfortunately i have to wait another two weeks for my letter notifying my IP about my salary increase to be reviewed by my IVA company thats why i was hoping for some general views about what would normaly be expected.I have never spoken to the IP at DFD.

[MelanieGiles]

Was the creditor who rejected Capital One by chance? If so, this has been rejected on your behalf as it seeks to limit the fees of the IP - but you should have been consulted on this point as the only person who can reject creditor modifications is yourself.

[caz]

Sorry Melanie I think there is a slight misunderstanding here.The clause regarding fees was not rejected.Ian was just enquiring as to whether this was one of the items 'Rejected by debtor'. Please could you be so kind as to indicate what usually happens with pay increases. Mine was backdated so does that amount get treated as a windfall?

[MelanieGiles]

In my practice we review pay increases at the end of each year, so if this has occured since your IVA was proposed then it ought to be looked at in one year's time - but do check with your own IP who may have different views.

[caz]

Thanks Melanie for your very prompt reply. Does this mean I can spend my increase(SENSIBLY) or will I have to save it up to pay into iva. My next review is not due until August.?
I hope you have your dressing gown on now and are ready to go to bed soon. You do an amazing service on here but take care of you too.Remember its 1st April which could mean a challenging day ahead!

[MelanieGiles]

Caz - you need to check this with your own IP. I cannot give authoritative advice on a case I know little about, and it is your IP's decision at the end of the day.

I'm off to bed soon, and am keeping my head down tomorrow as my Northern Irish business partner always comes up with an April fool for me which catches me every time!

[caz]

Ok, I will patiently await my IP reply..thanks anyway and good luck tomorrow, hope you don't get caught out. Sweet dreams.