www.iva.co.uk

I have just found out (quite by chance) that my business partner (who owes me and our two companies money - one concerns myself and him, the other has a third partner involved)has instigated an individual voluntary agreement with local solicitors LP. This without our knowledge, and without the solicitors contacting us.
I feel that he has been underhand in this IVA, and has not disclosed the full extent of his debts to the solicitors - even if this IVA is near to settlement or has been settled, can we contact LP and force him into proper bankruptcy?

Not sure how to answer this, If he owed you money then it would have been sent to you to vote in creditors meeting.

Has this affected you directly?

Kirsty

If you are one of his major creditors, and knowingly left you out, and the amount of debt he has with you would affect the voting if you said no to the proposal then I'd say he was on very dodgy ground. I'm sure a professional would be able to advise further.

Hi Cindy

You may be better off trying to get your debts added to the IVA .

I suggest you do some homework and find out at what stage the IVA is at.(check the insolvency register etc)
in some rare cases debtors end up paying back 100% of the original debt through an IVA. trying to make your partner bankcrupt may not be the best solution for you
You dont say if your partnership is LTD or not but obviously you could be liable for any business debts he has run up himself in regards to the business.

Your only means of objection to the IVA is if your partner has failed to disclose you as a creditorr(s). This would be treated as a material omission, which could lead to the failure of the IVA.

Hi Cindy

I would say he has told the solicitor everything and its for you to prove he has not, now its going to cost you to speak to a solicitor is it worth it.

Regards.

Neil

The fact is that he does owe our company money, and I have not been contacted by the solicitors that i believe are handling his IVA as a creditor - so thanks for your advice everyone - I take from these posts that i need to contact the solicitors that are handling his IVA, to let them know that he has not disclosed his full debts ( a material omission) and to get separate legal advice myself.
Sounds expensive - but such is life
Thanks again everyone - a lesson learned.

I would definitely get it added. He owes money and should be made to pay it back.

I certainly don't agree with Neil that you should just let it go, and I don't see how he can say that your partner has told the solicitor everything. He has quite clearly omitted your debts.

Hi Cindy

Are you sure that his IVA is being administered by a solicitors firm as this would be most unusual. Have you checked out whether the IVA is actually in place yet? This can be done via an on-line search of the Insolvency Register.

I guess that the salient fact is that not only does he owe the company money - but also when the company has completed its project,(I'm going to have to put in more funding!) that he will have as a shareholder, an intrinsic asset. He obviously has not told his IVA advisers this - as they have not been in contact with our company or the company accountant for a share value or for a creditors' claim. Thanks everyone, I have been in contacgt with our company accountants and have made an appointment with my solicitor. I have checked the insolvency record - he does not appear there yet as IVA or bankrupt. I have (paid cash!!!) for a check to find out that he has not CCJs or fines registered against him or his (other) company either - this has come as a bolt from the blue.

Sounds like he is just in the process of proposing an IVA in which case you have the opportunity to scupper proceedings if you feel that this is in your best interests. You are doing the right thing in taking advice at an early stage, and do let us know the outcome of this relatively intriguing issue.