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Posted: Mon Sep 24, 2012 8:24 pm
by denver70
had a letter sent yesterday that my IP has noted that my liabilities have exceeded 10% of the estimated value ? what does it mean, he says he is currently reviewing the increase in liabilities for the purposes of proposing a variation to the arangement -confused ? anyone help explain before they get back to me
mistakingly put this on social forum - might get an experts view on here!!
Posted: Mon Sep 24, 2012 8:32 pm
by Sam Hawkins
Hi, when I draft an IVA that clause usually means that if the liabilities exceed by over 10% the amount stated on the Statement of Affairs, annexed to the proposal, then I would call a meeting (done by post) to ask the creditors if they will agree to include these or fail the arragement. A recalculation of the dividend must be done so if creditors were expecting 45p/£ and now they will only get 23p/£ this may amount to a default or failure. Hope this helps Sam
Posted: Tue Sep 25, 2012 5:41 pm
by MelanieGiles
It really does depend upon the wording of your own IVA. If your IVA follows the IVA protocol, and eventual claims exceed by 15% or more the figure originally estimated, this constitues a breach - which is generally rectified by asking creditors to accept the increase and thus a reduced dividend. Perhaps your own arrangement makes specific provision but just at a lower percentage.
If the IVA is fully researched prior to its presentation, and creditor balances independently checked, this should reduce the possibility of falling foul of the breach provisions.