www.iva.co.uk

a company organised an iva we excepted the first proposal but creditors rejected,after the va was resubmitted the creditors wanted 61 modifications added 1 being that we immediatley sell our house we never agreed and have found out that this company excepted the modifications without explaining them verbaly or in writting and informed us if we like it or not we are in an iva i have threatened legal action so now they have failed the iva,and the £2000 they told us to start paying whilst the iva was being proposed they are now saying we havnt paid we never agreed to any modifications how can they fail an iva that we never excepted

Hi
Sounds a bit of a nightmare.
Firstly who are the company and how long ago did this all start ??

Tracy

If you did not accept the IVA, then it is null and void and never existed. Make sure you advise the IP concerned of your recollections, and ensure that you signed no agreements. Presumably you were provided with a Chairman's Report of the meeting proceedings, to know that there were 61 modifications? Did you query this at the time with the IP? Try and give us a bit more information of events surrounding the creditors meeting so that we can advise further.

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

we contacted this company through another organisation,in oct 06 the sole reason of trying to secure an iva was to secure our home,as i have a disability. Hamiltons the insolvancey company firstly submitted in oct 06 but northern rock turned us down as we hadnt had our unsecured loan for a year but because none of the other creditors declined our offer hamiltons were convinced that if they resubmitted in feb 07 then there would not be a problem.We signed aproposal stateing that we would pay 60 payments at £500 and then release equity to the sum of £33000 in year 5 we were happy at this time as we stated throughout our assosiation with Hamiltons we would not sell our home.The proposal was resubmitted to the creditors again 17 feb07,we were informed that this time kpmg the auditors had voted and said that we should sell our home and rent,i explained to hamiltons this was not an option and at this time they agreed it was not fees able.They adjourned for two wks in that time i made our position very clear that selling our home was not an option.Ithen called them on14 feb 07 and was informed that the iva had been excepted and they had to put in a couple of modifications that would be sent out for us to sign,imagine the shock when on saturday the 17 feb a new proposal with 61 modifications landed on our door mat stateing that we had to immediatley put our house on the market and if we didnt sell it in 9 mnths then it was deemed as failed,and they would apply for bankrupcey. I immediatley rang hamiltons on the monday and was told there was nothing we could do about it they said it didnt matter if we never signed the modifications.We wre devestated as we never had the modifications explained to us and was assured at all times that our home was not at risk,we sent aletter of complaint and said we intended to make an officail complaint i then had a phone call from them saying that they agreed we never had the modifications explained and they would inform our creditors that we never excepted the modifications,since then we have recieved aletter of noncompliance stateing that we failed our iva.I asked for there governing bodys name and address and was informed that i had to put my complaint into them to deal.So we now have a failed iva that we never agreedto and the £2000 we paid as advised whilst they were setting up iva they said to show creditors that we were commited they are not acknowledging so i think the ultimate word here is help

You need to follow the internal complaints system within the IP firm before making a complaint to their regulatory body. I suggest that you write formally expressing your concerns to your IP, recounting all of the facts as you remember them, and then ask the IP to respond to you in writing. They should be asked to explain why a Certificate of Non-Compliance is relevant for an IVA they accept was never agreed by yourself.

With regard to the money you paid over, what contractual agreement did you have with the IP firm for such payments, and what was to happen to that money in the event that the IVA was not accepted?

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

we have done all this and since submitting our complaint the ip has sent the letter of noncompliance to us i now have there governing bobys address no thanks to them and if i hear nothing else by friday will send my complaint i rang one of our creditors to see if they would except a DMP and they informed me we are in this iva .I have also checked the insolvencey register and we are on it.

Tracey

Who are you dealing with at Hamiltons? I know both of the partners there quite well, and have to say this does not sound right at all.

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

we do not really want to name who we are dealing with as we dont want any more trouble i hope you will not contact them as we are waiting for there response to our complaint,hopefully they can resolve it

Oh well still waiting for a reply from ip the sad thing is all we wanted was to protect our home,finding this all so stressfull

SORRY TO BE A PAIN BUT NEED AN ANSWER TO ANOTHER QUESTION.iF MY LETTER OF NON COMPLIANCE STATES OUR ARRANGEMENTS HAVE BEEN AS WE NO LONGER WANTED TO CONTINUE WITH THE ARRANGEMENT ,AND WE DIDNT MAKE ANY PAYMENT INTO THE IVA ,WELL FROM THE DATE WE APPARANTLEY AGREED IT WHAT HAPPENS NOW CAN WE TRY AND SET UP A DMP OR TRY FOR ANOTHER IVA WE ARE STILL IN SERIOUS FINANCAIL DIFICULTY,OR WILL WE BE MADE BANKRUPT.WE OWE £108000 AND HAVE A MONTHLY INCOME OF AROUND £2400 AND HAVE SURPLUS FUNDS ABOUT £600 ANY ADVICE WOULD BE REALLY APPRECIATED

Hi Tracy

I'd like to suggest a possible alternative strategy.

You say the main reason for trying an IVA was to protect your home.

However in bankruptcy your home is not automatically forfeit, as it depends on the amount of equity remaining. So what you need to do is reduce the amount of equity available to at least point below which the Official Receiver will not bother with it, and preferably none at all. There are companies (such as first+ I believe) who will lend to 100%+ of property value, so you should be able to send your house into slight negative equity, which is might be a good idea as it will prevent any positive equity re-appearing in a rising market while you get it sorted out.

You then use most of the money to distribute on a pro-rata basis to your creditors. No-one (including the OR) can then say you haven't made the best possible settlement from your assets, and the OR can't take your house.

You then pay the secured loan from your 600 a month, and if you still have any remaining income you may have to pay back some of your debts via the OR for a maximum of three years.

It's a fairly radical strategy, but it might work, I would be interested see if others can find any holes in it.

-Best


'5 years sticking my head into the Lion's mouth of debt !'

thanks for your reply,but i dont think any company would lend us the money.We havnt paid our creditors for 6 months on the advice of ip we have been paying our money straight to them every month we were told that it would show our creditors that we were commited to an iva and that we would make regular payments.The creditors havnt recieved a penny of this money ,and even though we signed nothing to say we had to pay up front fees ,it doesnt look like we will be gettin it back either,i feel like im on a rollercoaster,i jst keep going round and round.If anyone has any ideas please let me no.

I wouldn't be so sure about that Tracy !

I get letters every week at least from people offering to lend money in 'adverse credit' situations.

The terms won't be as good and you might have to dig around a bit but I wouldn't rule it out until you've had a proper look.

The beauty of bankruptcy is that it would wipe out your IVA issues, regardless whether you have or have not actually got one.

-Best



'5 years sticking my head into the Lion's mouth of debt !'

jUST TO SAY THINGS ARE LOOKING UP WE ARE NO LONGER ON THE IVA REGISTER,AT LEAST NOW WE CAN START LOOKING AY ANOTHER IVA,NO THIS SOUNDS A BIT DAFT BUT IT MEENS A LOT TO ME.