when do the creditors see any of the money

[oldcazza]

can you forum guys answer a question for me and mr oldcazza,at what point in the IVA do our creditors receive any monies we're 28 months in and have paid 5.5k, will they have got any yet?

[bluemoon]

can you forum guys answer a question for me and mr oldcazza,at what point in the IVA do our creditors receive any monies we're 28 months in and have paid 5.5k, will they have got any yet?

They've probably had about £3.25 by now

[Adam Davies]

Hi
I would think that they have received very little as the IPs nominee fees and first and second years supervision fees will have been taken from the 'pot'.This could be in the region of 4k
Regards

[oldcazza]

hmmmm...thought as much !

[MelanieGiles]

I would be suprised if your IP has not distributed anything yet. What did it say on your last annual report?

[acsn]

Hi,

The first 10p in the pound dividend in mine doesn't get distributed until the end of year 3. And I pay just short of £1000 a month. There is a variation capping fees to 30% ,which means they could still be around £18,000 . By my reckoning they'll have collected £35,000 and only be distributing £13,000 to creditors. The rest I'm presuming will stay in their account for the final dividend at the end of the IVA.

I am hoping at the 3 year point this might work in my favour because I don't have an equity release clause and can change my circumstances quite dramatically very easily . I am hoping a full and final of 25p in the pound at that point rather than risk waiting to see if they get a futher 30p at the end of the five years might be attractive to Max Recovery and those creditors who seem to have lost interest and no longer bother to update my credit file.

What I'm not sure about is if I can use the monies my IP has already collected minus their fees of course, as part of the £32,000 full and final offer. By my reckoning they should have £25,000 to contribute.

I am hoping that Melanie et al with highlight the flaws in my cunning plan.

best regards

[oldcazza]

hi everyone, we have never had a yearly report so have no idea,as i said previous we have not even had to do an annual review. we are paying 26p in the £, with a 4th year equity release of £8,700.we are with debt matters,and 28 months in

[MelanieGiles]

IPs should distribute as much money as they possibly can as early as they can. It is ludicrous for acsn's own firm to be sitting on such a large sum of money - assuming that creditor claims have actually been agreed - just because the proposal document says they do not have to distribute until Year 3. Surely with a contribution so high, the proposal should have been suggesing a first payment at the end of the first year!

It is this type of practice that gives creditors ammunition against IPs and I personally endorse the current moves to get more regular dividends and that the IP should not be paid until monies have also been distributed.

To the cunning plan, I would not suggest making an offer at a lower dividend to that you originally offered, unless you circumstnaces have changed to mean that this is all you could afford.

To oldcazza - your IP has a duty to provide you with a copy of your annual report every year, so give him/her a nudge and ask them to send you copies of the first two reports - and ask why they were not sent out when they were supposed to be.

[acsn]

Thank you Melanie, I didn't think anything of the 36 and 66 months dividend at the time but now think it does seem a bit mean to the creditors. Funnily the only people who voted were doing so on behalf the other side of the organisation proposing.

I'm still curious about the money in the pot so to speak , could it be used as part of the full and final offer.

As for circustances, my IVA payment is primarily lodgers rent, but I can never tell when my poor old mum, who lives alone in a rented flat, might need to move in with me.

thank you

[MelanieGiles]

I know the firm you mean - and am assured by them frequently that there is no conflict of interest, but it does suprise me that they would have such a lenghty period built into their proposals for payment of the first dividend!

The money in the pot already belongs to the creditors, so you cannot take it back and then use it for a full and final offer if that is what you are suggesting!

And until your Mum does need to move, there is no real change in your circumstances which would need reporting to creditors.

[acsn]

Thank you again Melanie,

Just checked the report and yes, 10p at 36 months and the creditors don't get there final 30p in the £ until month 69.It also says those creditors who don't claim within six months of the dividend date will be excluded. Does that mean if they don't claim at the 36 month point they're excluded for good. Unclaimed money to shared amongst those who did claim. Could be very good news for those who are keeping an eye on the debt.

But when I checked my credit file many of them stopped reporting months ago, lets hope they've got a good brought forward system.

Still a little confused about the money the IP will have in 'the pot', even if all creditors claim and assumming standard fees there is stil going to be about £15,000 left over at the 36 month point.

Are you saying if I did have a change of circumstances and wanted to end the IVA early I couldn't use this as part of the offer to creditors.

Would the IP just keep that money. Sorry if I being thick here.

I promise this is my last question of the day.

regards

[MelanieGiles]

I think that we are both not understanding each other so some specific questions about your IVA.

1 How much are your total debt included in the IVA?
2 How much are you paying per month?
3 What is the duration of the IVA?
4 Was any property or other assets included in the IVA?
5 What dividend is being offered to creditors?

Hopefully this will then all make a little more sense to me!

[acsn]

How much are your total debt included in the IVA? £130,000
2 How much are you paying per month? £9943
What is the duration of the IVA? 66 months
4 Was any property or other assets included in the IVA? None
5 What dividend is being offered to creditors? 40p in the £

I thought I was understanding you , I think. I'm just a little unclear on if I can include the remainder of the funds collected after 36 months minus the 10p dividend as part of a F & F settlement.

Sorry if I'm confusing you.

[MelanieGiles]

Your IVA is set to run over 66 months to produce a dividend of 40p in the £. Forget the timing of the dividend payments as I feel that this is where you are getting confused.

You end up paying over £59,640 to produce a dividend of 40p in the £ over the 66 months, so the IP fees must be in the region of £8,000.

An early settlement will take account of the monies you have paid to day, but you still need to be trying to achieve the 40p to ensure success.