your advice would be so much appreciated

[jme]

I have been having problems with Clearstart since i started my IVA with them. I have fallen behind with payments and they said that they would allow me to have 6 months holiday and now i am 4 months in arrears. They have not done everything properly from the start, they never got my ID. I lost money from loosing a job and they wouldnt re-assess my income and exenditure.Even though the reason my income and expenditure changed was that they didnt infomr a creditor of the IVA and they sent a baliff i had to borrow 300 pounds, then i am still paying £100 a month - as it is for council tax - I was so wrongly advised. I have got the money to clear the 4 months arrears but they say it is to late and they are defauilting it. I do not want to go bankrupt. I want to pay an IVA. I can afford the £242.00 a month now.but really dont want to stay with clearstart, nor do i want to be bankrupt. Can you make any suggestions. Can i do a DMP or set up and IVA else where your advice would be so much appreciated.

[MelanieGiles]

Hi jme

I don't understand why an insolvency practitioner would want to default your IVA when you are in a position to clear the arrears. Do you have a property which would be captured under bankruptcy proceedings, perhaps?

I am afraid that you are rather stuck with your IP if you decide that you wish to continue with the IVA, and I would recommend this rather than stopping and starting again. Speak to the IP directly, as I rather suspect you are talking to someone lower down the foodchain who is not making a commercial or proper decision. They are acting for the creditors, and should not be turning down your offer to meet the arrears as this will undoubtedly affect the return available.

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

[Cybus]

As Melanie suggested, you are stuck with Clearstart.
I for one am baffled that first of all they even allowed a six month payment break. That is irregular.
That said, they have done so and reading between the lines, they have done so, most probably, against the terms of the arrangement (as modified).
The maximum allowable arrears in proposals is generally three months, occasionally modified to a reduced two months. If you fall fall beyond those arrears you would be considered in breach of the terms of the proposal.
If Clearstart are using the R3 published Standard Terms and Conditions (And by golly they should be!!!!) then they must first issue you with a breach notice which will define exactly how you are in default with your arrangement. More importantly you are then given a period of time in which to remedy those defaults.
From what you say, you can clear those arrears. Clearstart should then be asking you to provide full details of your income and expenditure and assessing your position going forward. If your contributions in the proposal were £242 per month and you can afford to pay that, then there is absolutely no reason whatsoever that your IVA can not continue on track once the arrears are cleared. Bankruptcy is not an option that Clearstart should even be considering at the present time. They allowed you a six month break and they should stand by it. It is for them to explain their actions to your creditors in the next report that is due. That said, if by then your arrears are clear, there is no problem, though the Clearstsrt should refer to what has happened in their report.
Demand to speak to the Insolvency Practitioner.

NOTE TO MELANIE ... do you know if the R3 Standard Terms and Conditions are available on this site ?

[MelanieGiles]

No - but it is a good idea. I personally do not use them, as I find them deficient is some areas, but as the majority of IPs probably do use them it is not a bad idea.

Admin - can you help with this. The Standard R3 T&Cs are on the R£ website. Not sure if this affects any copyright issues - I would not have thought so.

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

[MelanieGiles]

No - but it is a good idea. I personally do not use them, as I find them deficient is some areas, but as the majority of IPs probably do use them it is not a bad idea.

Admin - can you help with this. The Standard R3 T&Cs are on the R£ website. Not sure if this affects any copyright issues - I would not have thought so.

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

[Adam Davies]

Hi
We will look into this and let you all know.
regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp