www.iva.co.uk

I've been in an iva for 3 years now with my partner and the original figure was £550 per month on debts of £42,000. we are now currently paying £640 from last month. Two of our creditors has still not come forward and this is about £13,000 of the debt. mt question is what happens at the end of the iva if the the Two creditors don't come forward?

keh were the 2 creditors that have not come forward been included in your iva?
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

Hi scaredkez
Yes, but they still haven't come forward, luckily though the other creditors said yes and the iva was set up but these two creditors did not vote

keh

if your iva was approved without their votes it means you had the 75% vote and have nothing to worry about from them, as they are now included in your iva, why did the amounts change?
your other 2 creditors that didn't vote are legally bound by your iva so don't worry about them.
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

I think that the point keh is making is what happens about the dividend payments these creditors should be entitled to?

If these two creditors do not submit claims, and the Supervisor of the arrangement has tried every means to trace them without success, then the money they would have been entitled to will be distributed amongst the other creditors giving them a higher dividend.

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

Hi Melanie

First to answer scaredkez about payment going up, with pay rises and slight change to circumstances ie working more overtime we put payments up.

Melanie you are right about the point I am making. Also if at the end of the iva and remaining creditors have been paid and there's money left would we be intitled to a refund or would the ip retain the money in case they come at the end

thanks

keh

Do you know I knew you were going to ask that question!!!

Yes, if all of the creditors have been paid in full, and there is no requirement for your IP to pay statutory interest, you may well get a refund. These points are normally covered in your IVA proposals, and terms and conditions, so have a read through to see what they say.

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

Thank you Melanie,

On hindsight I should included that question in my original posting.

I do not think there will be any thing left over because my calculation is after the ip has been paid the remaining creditors should get about 80p-90p in the £ back. Just thought to ask the question in case any other people out was thinking the same thing

keh