i entered into an iva for 72 months, i have paid 53 contributions but have never sent in pay slips due to the fact i have been paid extra bonuses. I had letters each year saying i was in breach but each rime freeman jones carried on with the iva. i have now received a letter saying due to numerous breaches they have to obtain the further approval of my creditors in order to continue my IVA to bring it to a successful conclusion. they intend to call a meeting with my creditors to seek approval for terms that will allow the arrangement to be continued. they propose that 1/ ongoing monthly contributions remain for the remaining 19 months with an assessment and if appropriate a realisation, of equity in accordance with the standard conditions, in month 66 of the IVA will still be required, 2/ that there is no further requirement to provide information for 6 monthly reviews of income or annual reviews of income and expenditure and no such reviews will be undertaken,
i am unsure what to do, i have spent the money extra that i have received over the years on family holiday, my mothers funeral, kids etc and just carried on making the payments that was originally agreed. can you advise me at all? i would really appreciate your help, i have been advised that i could go bankrupt but i have paid £12,728.84 and it would seem a waste - please help
I would work with your IP to identify a solution - if this means extended
payments then so be it in my opinion. I would say you have been lucky until now not to have had your iva fail so if the option is to identify a way forward to bring you back in line with your iva terms and condition then I would personally go that route rather than bankruptcy.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
No company is perfect bt Freeman Jones are one of the better ones and I would do as luluj suggests.
However at the point of equity release I would be expecting them to be going over everything with a fine tooth comb.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
I am surprised that your IVA was not failed before this and I can only echo that you should now work with your IP to get this sorted. Any extension now would be better than going bankrupt (which could see you getting three years of more payments and severe penalties if you don't disclose income).
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Amazed that FJ have carried on without conducting a review and wonder if they should have notified a breach earlier. They are proposing to carry on as before with no reviews, again quite amazed by this
I would work with them to get the meeting approved asap
As you know, when you commit to an IVA you agree to pay what you can afford into it for the term of the agreement. In return your creditors agree to write off any of your debt that what you can’t afford to repay.
One of your obligations is to ensure you send in your wage slips on a regular basis and inform us if you earn over the agreed amount - so that we can confirm that you are paying the right amount into your IVA.
We make every effort to contact clients by letter, phone, and email (if you have consented to us contacting you this way). We also send payslip reminders by text message. It is because you didn’t provide any of this information that we issued the breach notices to you.
As you have, by your own admission, earned more than your allowed income for the past few years you will have accrued a considerable amount of “additional monies” that are due to be paid into your IVA.
If your IVA is to conclude successfully some or all of that will have to be paid into it. Exactly how much will really be down to your creditors – but as we have said it will mean extending the term of your IVA so that you can continue to pay into it. If your creditors are unwilling to do this, or you refuse to do so, then your IVA will fail. If this does happen then bankruptcy is certainly a possible outcome.
Clearly we don’t want your IVA to fail – but to achieve that you need to work with us to present to your creditors a plan that they see as fair. After all, from their perspective, you haven’t kept to your side of the agreement.
Sarah
Last edited by Sarah Jolly on Fri Feb 27, 2015 11:33 am, edited 1 time in total.
Sarah Jolly IMA CMAP - A member of the IVA team at Freeman Jones
I Think FJ are being as supportive as they can be! You need to work with them now, as you say it would be a shame to fail after so long that
In your position, to be frank I would be grateful they are willing to help you
Hmmmm, an interesting one but with major errors on both sides. Obviously the OP should have worked with the IP, but even if I had not participated in reviews I think it is very wrong for the IP company to continue taking money for another 4 years (following failure to complete first review). If this was resolved at that point, you could have either complied and continued you IVA or not complied and gone bankrupt. If you had gone bankrupt it would all have been done and dusted now.
However, you now face a lengthy extension or bankrupcy now, either which could take you another 3 years.
I agree, Mole, that there is an element of "half a dozen of one and six of the other", but FJ are trying to assist in finding a way forward now. it is now up to the OP to engage and do their part ... or not !
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
