Hi, the facts, advise welcome please.
Entered IVA, 17/03/08 with debts (unsecured) of £44,951 (11 creditors in total)
12th December 2012, redundant and advise IP accordingly & formal breach notice issued, advising termination of IVA within 1 month of the letter.
23rd April 2013, copy of notice to creditors received from IP, the motion being that 'funds paid to date are accepted in full & final settlement'
23rd May 2013, motion rejected.
3rd September 2013, further breach notice issued.
5th November 2013, Certificate of Termination received from IP.
I feel very strongly that my IP did not even follow their Standard Conditions when notified by me in Dec. 12
In total I paid £26,542 into the IVA of which £19,862 was distributed to creditors. 5 of the creditors are now pursuing me and I do not know where to turn?
I always feel angry when I read a post like this. A debtor has entered into an IVA, paid in for over 4 and half years and then through no fault of their own finds they can no longer make payments.
Do you know why the F&F was rejected. Did you have access to other funds that you did not pay in? Could you not take a payment break whilst looking for a new job? Did you not received redundancy to assist with payments until you found a new job.
Do you own your home or are there any employment related issues that could prevent you from declaring bankruptcy, rather than attempting another IVA ( if one is even sustainable at present for you).
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Dont know why the motion was rejected, only 5 creditors voted, 4 against. I have no assets (and still dont)though I am now in stable employment and it is not the type of job I would lose if I went down the bankruptcy route.
IVA was with Freeman Jones.
I dont own my own home and nothing in the bank!
I do think bankruptcy may be your best option now as it seems unfair to put you into another 5 year IVA. However, I would check with FJ and see if they will pay for it since creditors refused your offer and it could be within the terms that funds are retained for this purpose. It would serve creditors right if their money paid for your bankruptcy!
Were Northern Rock one of the creditors? They rejected my F&F offer a couple of years ago even though I was seriously ill at the time with no guarantee that I would survive or return to work but they were willing to turn down the remainder of their payments as a lump sum - it appears that there are creditors willing to cut off their noses!!!!
Last edited by dancer on Wed Aug 13, 2014 12:38 pm, edited 1 time in total.
To be honest, when the IP put the motion to creditors, they state that they wish to draw the remaining balance held, £82, in respect of preparing the variation, following acceptance, naturally. Certainly will go back to FJ and ask the question.
Northern Rock were not a creditor.
Michael, mole, that is how I felt when it was rejected. Had they accepted the motion, they would have had a return to that date of 44p in the pound (already paid to them) as opposed to the anticipated return of 62p
I feel so aggrieved as FJ upheld my complaint (in April 2013) about the delays in drafting the motion, and the reply states that it should have been done within 30 days of the breach being issued in Dec 12! They did offer me £25 in recognition of my 'distress and inconvenience' I did of course reject this.
Thank you for the post. I am one of the team here at Freeman Jones.
We do appreciate that four years into an IVA it is deeply disappointing to have it, and the F&F settlement we proposed, fail when you were made redundant. There appear to be a number of reasons why the creditors rejected the proposal at the time.
As you know we did work with you for several months trying to find ways of completing the IVA and also looking at other solutions. We did discuss bankruptcy as an option with you a number of times. We’d certainly be happy to take this forward for you now (this is something we don’t charge a fee for). If you’d like to discuss the options then please do drop me an email – ian.williams@freemanjones.co.uk and I will ask one of the team to call you.
