www.iva.co.uk

my husband and myself had our creditors meeting on tuesday and our iva was approved, however yesterday the insolvency practitioners we are using phoned to say that they had made a mistake and one of the creditors had been mistakenly been added as owing 700 instead of 8000. They have therefore had to withdraw the iva and we have to have another creditors meeting in 3 weeks. We are absolutely distraught by this as we thought we could start to look ahead to the future. How could this have happened and how was it not picked up before the meeting as we sent all the correct documents and statements.

Hi el m and welcome to the forum

I cannot understand how this has happened - or that your IP is representing your proposals in three weeks. Why don't they just adjourn the proceedings for two weeks (this is the maximum allowed) and sort out their error by way of debtor modification.

Everyone does make mistakes, accepted, but I do not think your IP is taking the right approach here. They need to ring round the other creditors who have not voted promptly to encourage voting, and also attempt to turn the rejected votes at the same time.

Creditors do not like represented proposals. Which IP firm is acting for you?


Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

I am so sorry to hear of your situation I really do not know what I would have done if that was me.

This is a really awful thing to happen to someone!

Please keep posting on here even if you just need to let off some steam!

Thanks for replying so quickly, one of the modifications to the iva before it was agreed was that if unsecured creditor claims exceed the level quoted in the proposal and reduce the likely dividend to creditors by more than 10% this shall constitute a breach of the arrangement and the supervisor will revert to the creditors to ascetain there required course or action. is this perhaps why the the insolvency practitioner is arranging another creditors meeting.

No - they should tell the creditors that they made a mistake and deal with it in a professional manner.

The modification you refer to is presently irrelevant as you do not have an IVA confirmed - it is therefore not part of any contract yet. Tell them to revise the figures for you and to revert to creditors with an amended offer quickly.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

I have asked my iva company to do this but they say that the only way to solve the matter is to have a new creditors meeting within 3 weeks and they are going to send a covering letter to explain that they made the mistake.

I do not understand this. If your first creditors meeting was only on 27 February, they have until 13 March to get this sorted. There is absolutely no need to wait 3 weeks and represent the proposal. Ask them why they are not doing this, and can you tell me which firm you are using?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

Thanks for the advice I will ask them again tommorrow. the firm is Accuma.

just to let you know that after 3 nervous weeks our iva was accepted. We are so relieved as now we can look forward to a better future.

I'm really pleased for you el.m. Good luck for your future.

Onwards and upwards!!!

View my blog at http://skippy13.blogs.iva.co.uk/

Thats great news !!!talk about being through a roller coaster,you both deserve a medal.
Good luck and start counting down
Regards

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp