will I be able to renegotiate my current iva

[Culedude]

I currently have an iva. The iva was directly set up in conjunction with our buisiness ie the more we earn then the more we pay. Unfotunately we have recently had a fire in our buisiness and it looks that we will not be paid out, therefore as the buisiness is now not operating we do not have any income coming in from it.

I have spoke to my iva supervisor who has requested a payment break until we can raise funds to reopen the buisiness. As it looks like that it will be some time before this happens we are currently oweing money to our landlord etc for ongoing costs of the buisiness.
My question therefore is, will I be able to renegotiate my current iva to include the new debts we are now incurring.
Thanks for your help

[MelanieGiles]

Hi den.m and welcome to the forum

You will not be able to include debts incurred after the acceptance of your IVA into your existing arrangement. I suggest that you try and negotiate a separate payment break with your landlord with regard to the ongoing rental arrears.

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

[Culedude]

Due to the sale of my buisiness my wife and I will have £25000 to put towards a full and final settlement of our iva. We believe this money would be treated as a windfall and would have to be put into the iva. Is this right?, also we are also considering selling our property to raise the extra funds we would need to settle the iva, our current iva is 51p in the pound and the original debt was £72000. We can, depending on the sale of the house raise aprox 48000 total. How do we proceed?. Obviously we would like to settle the iva as quickly as poss but would also need some money left to rehouse our family etc, moving expenses.
Any advice would be most welcome

[Adam Davies]

Hi
Speak with your IP and ask them what figure they feel will be enough to settle.Your correct in that the sale of your business will count as a windfall,However because I presume that you both will not be working straight away it could be in your creditors interest to accept this along with part of your house sale as a full and final settlement.
Good luck
Regards

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

[ray_a]

Please go through your IVA document and look out for any clauses that state statutory interest.

Please come back because we have a major problem. I will get the wording and post it on this thread.

Please do be careful.

Good luck

[ray_a]

The offending clause!

"In the event that it appears to the Supervisor that there are sufficient funds to make payment in full of the debtor's debts, together with statutory interest at the prevailing rate, and the fees and associated costs of the Arrangement, he shall do so expeditiously and in the conclusion of the Arrangement"

[MelanieGiles]

Good afternoon all

I would not necessarily treat the sale of the business as a windfall - but it depends on how the business was treated within the IVA proposal. What are you actually selling - tangible assets or goodwill?

Also, how was your house treated in the IVA - 4th year revaluation and equity release provision? I think you need to now speak with your own IP to see if they feel that the settlement you are offering is reasonable.

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

[Culedude]

The sale of the buisiness includes both tangible assets and goodwill, although the buisiness is not trading at the moment due to the fire as previously mentioned. The income from the shop gave us a surplus income to pay the iva rather than to go to bankruptcy.
Included in the iva was an equity release after 4 years 80/20 split.
Although the iva has just been finalised we have not made our first payment yet of £422, due to the fire situation in the shop.
Because now our circumstances have changed would we be able to ask our IP to fail this particular iva in order to include the debts we are incurring now into a new one.
This is just a safe guard in case the sale of the shop does not go ahead.
Hopefully we will not need to do this.
Wish Id found this site earlier as been a great help so far.
Thank you

[MelanieGiles]

This situation is quite complex, and I suggest that you have a detailed discussion now with your IP as to the way forward. I would have thought a varation to the original IVA to take account of the shop and house sales is the right way forward, but you will need to deal with the landlord as a separate issue in view of the rent you are continuing to accrue.

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