www.iva.co.uk

Hi all, can anyone give me an idea about what happens at a variation meeting? What is the difference between this and a resolution meeting? My iva company have informed me that this meeting will cost me £1,000, with no guarantee that there will be any resolution. I am confused and worried!!!!

Its just the same as your first creditors meeting in that creditors will make their votes without actually being there.
The £1000 will then be taken from the IVA pot and not actually out of your hand.

who gets the £1000?

The IVA company for doing the work to put the variation together.

what work does it involve,is there any transport costs etc.

What a shock it was when they told me it was going to cost £1,000. I was so worried that the company were trying to rip me off! BUT i am a worrier. Does anyone know the likelihood of an iva failing at this point? I am told that the creditors could take me for bankruptcy OR even demand I pay back all my debt with a debt management plan!!

Mrs Skint is correct - the variation meeting is exactly the same as a creditor meeting and does attract fees.

I would be surprised if your IVA would be failed now. With bankruptcy your creditors won't get back as much as they would if you completed your IVA. Unless there is something in your proposal which states that the creditors will pay for bankruptcy, then it is unlikely that they will do so as it will cost them money.

They cannot demand that you do a DMP.

I am sure that things will be ok.

Thanks for your reply Jan, am sure you can imagine what I am going through at the moment, and your kind words of wisdom puts my mind at rest for a while.
I don't suppose you know the options I would have if my iva was to fail at this point?
Fingers crossed, and being positive that it won't fail.

If it should fail, then your options are either bankruptcy or a DMP or entering into an agreement with your creditors yourself, however you can't be forced into BR or a DMP.

After three years, then I would think that creditors will want it to continue. I am sure that an extension to your IVA could solve your problems.

Thanks Jan, I like to know where I stand and what all the options available to me. You have really helped me with this.
Tanya xx

I've got everything crossed for you Tanya.

Good luck from me as well Tanya x

My best wishes too Tanya x

The variation fee will not necessarily be drawn from the funds held by the IP - it often (under the terms of the proposal) requires to be paid to the IP directly by the debtor - although this can be attmepted to be modified in at the newly convened meeting if necessary.

Melanie, are variation fees normally satisfied by lengthening the IVA by a couple of months (depending on monthly payment)?