Cancelled IVA but Creditfix approved it anyway

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jonnybravo

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Post by jonnybravo » Mon Aug 12, 2019 1:27 pm
Hi all,
I have around 31k debt which was going through IVA with creditfix today. Meeting of creditors was due today at 12.00.
I phoned them today at 10.00am to cancel the application. Basically I did I&E with IP and we worked out disposable income of £420 per month. He then sent me a some documents to sign which also stated I would like to pay £420 per month which I signed. I had a read of the letter this morning my IP sent to all creditors. In that summary he stated the repayment to creditors would be 5.65p in the £. With an offer to creditors of a payment of £20.77 per week which is just a fabricated figure that I did not agree nor sign for, but he also attached a copy of my expenses showing £420 per month disposable income. I know that it would come back and bite me this time next year at my annual review where it would show I have £420 per month disposable income.
Anyway when I called today at 10.00am before the meeting at 12.00 and told them I wanted to cancel for the reasons above they said ok that would be fine. Also they sent me an email confirming they would cancel application. But then at 14.00 today I got a call from creditfix saying the meeting went ahead at 12.00 and I can no longer cancel as it is legally binding contract. Any advice would be massive help

Foggy

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Post by Foggy » Mon Aug 12, 2019 1:41 pm
It is only a legally binding contract if you have agreed to it and you have an email from them confirming that you have withdrawn that agreement before the matter was put to creditors, therefore there is no contract.

I am assuming that the proposal document you signed has the £420 monthly payment in it -- THAT is what you signed for, not this fabricated rubbish they are now coming out with.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
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jonnybravo

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Post by jonnybravo » Mon Aug 12, 2019 1:51 pm
Hi
Yes the statement I signed was for £420 per month. The letter they sent to creditors stated I wanted to only offer £20.77 per week.
They said it was an error on their system generated figures and should have been the £420. They said creditors would ignore the official letter they sent them anyway and go with the £420 per month which was shown as disposable on my income and expenditure summary which was also sent to the creditors. I am still not happy with the situation due to their very poor professionalism and wanted to cancel as if they cant even get the offer right what hope do I have with them looking after my finances for 6 years. Do I write to creditors and tell them to ignore the this iva? And am I allowed to get another iva with a different company as I am now going to appear on insolvency register and be failed on an iva I did not want in the first place

paul945

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Post by paul945 » Mon Aug 12, 2019 2:20 pm
Hello,
I had a meeting of creditors scheduled for today at 12.00. I re-read all documents at around 9.30am and noticed the ip had made a huge error on my proposal. I went through income and expenditure with a member of the team at creditfix and it was determined I could afford to pay £420 per month. And I was sent a copy of the proposal confirming if agreed the payments would be £420 per month.
Having read through the summary of offer the ip sent to all creditors it stated I would only be paying £20.77 per month to the agreement even though the attached I&e form with the proposal showed I had £420 disposable income.
I phoned them at 10.00am this morning and told them I wanted to cancel as they had fabricated my affordability to massively less than was agreed. I knew come this time next year at my annual review it would come back and bite me even though it was not my error.
Anyway Creditfix agreed to cancel the application and confirmed via email at around 10.30am that it would be cancelled. I received a call from them at 14.00 saying the meeting went ahead and creditors agreed to proposal. They say I can no longer cancel as this is legally binding. Any advice would be a massive help

kallis3

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Post by kallis3 » Mon Aug 12, 2019 2:26 pm
Topics merged as duplicate.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
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Foggy

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Post by Foggy » Mon Aug 12, 2019 3:38 pm
Mon Aug 12, 2019 1:51 pmjonnybravo wrote:
Hi
Yes the statement I signed was for £420 per month. The letter they sent to creditors stated I wanted to only offer £20.77 per week.
They said it was an error on their system generated figures and should have been the £420. They said creditors would ignore the official letter they sent them anyway and go with the £420 per month which was shown as disposable on my income and expenditure summary which was also sent to the creditors. I am still not happy with the situation due to their very poor professionalism and wanted to cancel as if they cant even get the offer right what hope do I have with them looking after my finances for 6 years. Do I write to creditors and tell them to ignore the this iva? And am I allowed to get another iva with a different company as I am now going to appear on insolvency register and be failed on an iva I did not want in the first place
It could well be a foul up with their paperwork -- regrettable,but it does happen.

If the proposal presented and accepted was correct, then you would not have wanted to withdraw, so, if they were correct, then there is, arguably, no reason to cancel (apart from confidence issues).

Ultimately there are two choices: 1) allow the IVA to stand 2) fight your position that you withdrew authority for them to act before the meeting and so it should never have gone ahead -- which could get messy as, yes, you can allow the IVA to fail, and would be dependant, then, on creditors accepting your version of events and then allowing an IVA to be set up again with another provider.

You really need to seek professional advice from a solicitor.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

luluj

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Post by luluj » Mon Aug 12, 2019 6:01 pm
Difficult circumstances that shouldn't have materialised .... if it were and I comfortably know that £420 was affordable I think I would be inclined to draw a line and let it pass and let the iva commence.
By the time you fight it, argue it out, fail it and then start again you will be into year 2 and potentially have creditors on your back again chasing for money.

A steep learning curve for you and others .... always check your proposal documents fully in advance of the meeting not once, not twice but several times.
Sharing from experiences of dealing with debt

There is a solution for everyone .... Just need to stay positive !

Look at my blog "All I wanted was a baby"
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