www.iva.co.uk

If I can get help from my family and propose a lump sum IVA then how long do the conditions of the IVA last ? Can I expect a better deal than monthly repayments ? Can creditors come back to me for further payments if I have spare income ? I am assuming I pay my family back subsequently.

Hi there willamby and welcome to the forum

The terms of your IVA last until the case has been concluded. Most IPs will usually run a full and final settlement based IVA for a 12 month period, but there is no reason why it could not be closed at an earlier stage if the money had been received and creditors claims received and agreed.

If your circumstances change during this period, you will be obliged to notify your IP and technically this could result in some payments being taken off you on an ongoing basis, but this is pretty unlikely - especially if you are repaying family for monies lent to you.

If the F&F settlement is for a lump sum to be paid subject to creditors approval - once that approval has been given then the IVA is finished and completed. Your Supervisor will then give a Certificate of Satisfaction and a Final Report - maybe 7/10 afters approval by creditors. That will be the end of it. No one can claim anymore.

What about the 28 day appeal period post-creditors meeting David? Surely you do not distribute to creditors within that timescale?

Hi Melanie

What is the 28 day appeal period?

I sent my paperwork back today for a proposal to be made to my creditors to accept a full & final settlement and I have not been told about an appeal period.

I thought the creditors would say 'yes' or 'no' to accepting and that would be the end of it!

Thanks

Poppy

Melanie,

Whilst I accept there is a 28 day appeal availability following acceptance of original IVA not sure it follows in respect of Variations. However, in practice it is very rare for any variations that we have proposed having any disentors. By the way what clause is it in respect of Variations of the IA or Rules?

Agreed - but I read the orginal post to be an IVA based on a lump sum from the outset, and not one varied half way through. Perhaps I have misread or misinterpreted the post.

So far as I am aware there are no provisions for variations in the IA or Rules. These are generally dealt with in the supplementary T&Cs.

On Williamby post you are right as it is an original one!

Poppy

The 28 day appeal period is a period of time after the creditors meeting (or more techncially after the filing of the Chairman's Report to Court) during tehich time any creditors who feel that there has been a material irregularity or unfair prejudice can appeal the decision of the creditors meeting.

These are extremely rare, and I have handled over 2,000 cases in my career and never had one, but nevertheless it would be a reckless IP who would distribute monies to creditors during that time period - as they would find themeselves perhaps liable for any losses.

Thank you for clarifying.

If the funds were distributed and then a creditor appealed would I lose all the money?

It would be more a difficulty for your IP Poppy - and for this reason, it is very unlikely that they would distribute in this time period.

Hi, thank you for the prompt advice. I owe around £70,000 of which £54,000 is joint unsecured loans with my now estranged husband. We have a house which has no equity but which may be sold in the near future to cover the mortgage. I do not know at this time what my husbands plans are - if I make a lump sum settlement would my position be affected if later his arrangments for an IVA or DMP subsequently fail.

Hi again William

If you make a settlement with your own creditors, including any debts which you have jointly with your ex-husband, then you should not be affected by his own decisions or the outcome of his own debt repayment plans.

If an IVA is accepted for you, or you decide to declare yourself bankrupt - which should be also considered as I note that there is no equity in your property - then the joint creditors will continue to chase your husband as he is jointly and severally liable for those debts. And vice versa if he gets an IVA before you do.

Is Poppy in an existing IVA or proposing a new one?

I think that she is already in an IVA - but only because I have just read a later post from her on another thread this evening!!