I would really appreciate some thoughts/feedback on the following:
I am in an IVA and I am no longer able to afford the agreed monthly contribution. This is mainly due to the fact that these were calculated on an estimated turnover for my practice (I am a Denist). The actual turnover is a lot lower and as such my income has dropped significantly and I can no longer afford the monthly contribution and have fallen into arrears.
I have raised my concerns regarding affordability with my IP for the past 9. As I am in arrears with my payments I was told that he has no other option than to issue a 'Notice of Breach' which I thought was very harsh, as I was never offered a reduction in contribution or payment holiday or anything like that.
We eventually agreed that he would arrange a 'Variation Meeting' to see whether the creditor's would agree to a reduced payment contribution.
After months and months of stress and worry and hard work, as I had to produce the annual accounts and a revised cash flow forecast and revised income and expenditure account my IP has send me variation letter that will be send to the creditor's which in my opinion is very negative, that is, it is almost an invitation to vote for 'failure of the IVA'.
When I voiced my concerns with my IP I was told that the letter will not be changed but I could provide a letter outlining why my turnover has dropped that will be send together with the IP's letter. Also, my IP will not agree that in the letter there is any refernce to him having reviewed the revised figures and that he agrees that the budget has been prepared using realistic figures.
My question is this, is there any way I can influence the content of the letter that is being sens to the creditor's?
I would very much appreciate some feedback as I am really hoping for a positive outcome to the variation.
Hi Sabine. I am afraid that you are very much in the hands of your IP -- who seems a mite unhelpful ! Most arrangements cater for a reduction of 15% (at the discretion of the IP) without reference to the creditors --- does yours (it will be in your paperwork)?
The variation is your variation proposal so, in theory, you are able to word it and most IP's would bear what you want included in mind.
Might I ask who you are with ?
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Ips are very objective,so you may find that they are 'not acting' as an advocate and supporting you.But you understand they are accountants first and foremost.They look at balancing books using their accountancy skills.
They cannot vote or petition for debtors and in your case endorse your projections for creditors consideration.
So don't blame them for their rather detached persona and I hear a lot about this on this forum.You got to speak to your Ip....some cannot ever speak directly to them.
Creditors will make the business decisions, so let us hope they accept your proposal.
Last edited by TzeKin on Fri Sep 19, 2014 2:16 pm, edited 1 time in total.
