Hi, I have 10 months remaining in my IVA and I have just received a letter from my iva company informing me that following a review of my arrangements, claims submitted by my creditors have been recieved 15% higher than anticipated on my statement of affairs and if these claims are to be proved correct, my iva will be breached and i will have 30 days to arrange the extra payment either by increasing remaining payments, extending arrangement or proposing a variation meeting.
My statement of affairs are around £32000 but the actual amount claimed is £37000.
The question i would like to ask is if my creditors were still to recieve the original amount agreed (p in the £) at the time the iva was accepted would i still have to pay the extra. The reason i ask this is because my original arrangment would have had me paying a total of £17000 but because of wage increases/overtime, etc i would have payed more than £4000 extra totaling over £21000 by the time the 60 months are completed.
Thankyou in advanced.
I'm afraid I have no idea about this, but will bump it back up so that hopefully one of the experts will see it and be able to advise.
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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Hi
You would think that the extra monies from overtime etc would prevent you from having to extend your IVA. Only your IP can answer your question, have they indicated how long your IVA is to extend by ?
Regards
So your IVA company is saying that originally they thought you owed creditors 32000 but they have found out after 49 months that you actually owed 37000?? Any idea why it would take them so long to figure out what you actually owed?? I always thought that Ip's checked what creditors you owed what at the start so they could actually work out an expected dividend. By my quick sums they were 15% out on what you actually owed??
Have they given an explanation for this?
What company have you used?
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
By the look of the schedule of creditor claims, one creditor as only just claimed an amount for £7876 which was on the statement of affairs from the the beginning but has only just actually become claimed. Previous claimed ammounts have come in under the statement of affairs amount which is why the problem as only just arisen i think.
thankyou.
Even so you are in your last year and the claims should have been agreed well before now. Speak to your IP for an explanation as creditors who do not claim within a reasonable time are excluded from the IVA with no recourse to you.
Thanks for your advise and i will speak to my IP. I always thought the creditors had the full 5 years to claim, is this not correct?
also do you know if extra I have paid into my IVA will be taken into account to ofset the extra amount claimed?
thankyou.
The extra money should help to achieve the original dividend particularly if there was a minimum required. As for claiming, your IP can issue a notice during the IVA requiring a creditor to claim or they are excluded.
When do Ip's normally issue a notice to claim though Michael?? Is there a latest point that claims can be submitted?
I always thought that one of the 1st things an IP did was found the total amount owed to creditors,if you dont know that how can you possibly work out a dividend???
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
It is quite unusual Paul as the claims are normally agreed relatively quickly and dividends can then be paid. However if you have tried to get a creditor claim and they have not sent it in, you can issue an 11.2 notice which basically tells them to claim or they are out.
That is why I am surpriseD this claim was only agreed after 4 years especially since it was listed on the original IVA.
Just a quick update.
I received my annual report today that states that my original IPs resigned in March and new IPs were appointed, which is where I think the original problems arouse in the past.
The report does include the possible breach but my IPs are awaiting proof from creditors concerned before any action is taken so fingers crossed.
It looks as though after studying the claims that some creditors have added on extra charges/interest inbetween the time of us filling in the paperwork work and the date of the the IVA propsal being agreed.
Anyway thanks for the help of everyone on this great forum, I will update if any news is recieved regarding this topic.
Thankyou.
