Failed IVA

[simplesimon]

Hi, I finished making payments to my IVA in July of this year and every payment within the term was met. My IP has now advised that my IVA will be failed as I didn't keep up with correspondance, i.e. providing pay slips etc. Are they able to fail the IVA even if every payment was met?

[Rappy]

That seems really unfair. Please can you give more details?

[Shining]

Hi and welcome to the forum. It's good all payments were met were any uplift payments/windfalls not declared and paid over.

[Michael Peoples]

This is a little late for your IP to question compliance. If you were not providing information requested the IP should have taken steps to address this at an earlier stage and you always have grounds for appeal.

Speak to the IP directly and advise him/her that you are not happy with what has been said and demand a face to face meeting. These issues can then be addressed properly.

[simplesimon]

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Rappy

That seems really unfair. Please can you give more details?

My total debt was £46000 and I paid back £200 pm for 60 months totalling £12000 as agreed.
When the IVA started I also had a to close my business business and all my paperwork, accounts etc when to the Insolvency service. I received letters every so often from the IP asking for proof of earnings because 50% of anything over a certain amount was to be paid to my creditors. The problem is that I do not have and can not obtain proof because I do not have the accounts anymore and this was explained to them. I have even tried to obtain the information from the Inland revenue without sucess. I have however given them sets of accounts since my old business closed.
They are claiming that they have had to put a lot of effort into getting this information from me and their fees now amount to over £35,000 !! Perhaps 12-15 letters over the 5 years and nothing since Sept 2011. They are saying that I am in breach of my arrangement (clause 70)
I feel that tey are just trying to recover their fees
£35,000 for a £46,000 debt it's ridiculous.
Their latest report mentions Bankruptcy which obviously concerns me . Any advise would be greatly apprieciated.

[Tina Shortland]

Hi simplesimon that is shocking to be faced with this outcome now. Do as Michael has advised and request to have a face to face meeting with your IP so you can sit down with them and discuss the issues. If you are not happy at the outcome and get nowhere with their internal complaints procedure then ask for who their regulatory body is so that you contact them for asssitance.

Who is your IVA with out of interest - they may have a representative on here who can contact you directly?

Keep us posted.

[Rappy]

Oh dear. Please dont say Grant Thornton.

[simplesimon]

No not GT it is Marshmam Price. They were asking for information during the iva but I informed them that I could not get it. It would have been easy if I had payslips etc. But I was a director of my own company that went into insolvency and all paper work went off to the company that closed it down and they for some reason do not have it now. I set up again and was then informed about a year later that I could no longer be a director. So had to resign and close again and start as a sole trader. They have had the relevant accounts since the closure of my first business.
I was so happy that the payments had finished and thought that was the end of it. heir fees amaze me !! 321 Hours at an average of £98 pr hour ! Who pays that ? £36K fe for a debt of £46K.
May be I will ask for a face to face meeting.

[simplesimon]

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by lesley_

Hi and welcome to the forum. It's good all payments were met were any uplift payments/windfalls not declared and paid over.

Hi Lesley,
There were no windfalls and no additional payments were made. I had to produce an income and expenditure form for the IP nominator when reqesting the IVA and this was updated over the 5 years, I was expected to pay 50% of anything over what was on the form. Accounts were submitted each year as requested apart from the first couple of years as already mentioned. I guess what they are saying is because I cannot prove my income for those years they have deemed me to have been earning more when infact I was really struggling.
May be I will ask for a face to face meeting.

[MelanieGiles]

I have to say that their average hourly rate seems very reasonable - but the number of hours spent seems significant, and without full knowledge of your case it is a little difficult to comment.

Your IP can fail your case for non-compliance, however you could appeal that decision by making an application to Court. If you genuinely do not have the paperwork they have sought, I woudl suggest a small compromise such as agreeing to pay a further 6 months payments in lieu of any additional monies earned. This would have to be put forward by way of a variation, but it does show goodwill on your part and enables both sides to get an acceptable exit route.