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hi my wife and i are both going into the third year of our iva we have just recieved our second year creditors report and our creditors still havent been paid anything as our iva company say there is insufficaint income as they are still taking their fees also as wee agreed to release a lump sum of equity of £10000 each in the second year report they have now stated that we need to release as much as possible of our equity is this right or not and why havent our creditors been paid anything yet the company we are with is langley group

Hi gfc
It is not unusual for your creditors not to be paid a penny in the first two and sometimes third year.I find it as hard to believe as you but it seems to be the norm.
As for the equity release the normal clause is that the house is remortgaged in the final year of your IVA and you release as much as possible[normally upto 85%].However you seem to have a figure agreed and if this was the figure that was included in your chairmans report then I,m sure that it cannot be altered.
Ask your IP to clarify why they are asking for more.
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

I would be suprised to see a dividend not being paid at the end of the second year to be frank!

As Andy rightfully says, you need to ask your IP exactly what they mean by the equity release, and revert back to your IVA proposal and Chairman's Report to see exactly what your obligations are.

Notwithstanding my comments in para 1 - do not worry about the timing of dividend payments, that is for your IP to explain to creditors. Maintain your contractual commitments to the IVA, and you cannot fail to comply at the end of the day. Your creditors are unlikely to be too bothered about the timing of dividend payments to be honest - although in my opinion they should be!

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 that i will have to chase the ip up as in our original proposal it stated an equity release of £10000 each as we have seperate iva's sometime during the 4th year
thanks ryan