debts to family

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Nicola.sa

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Post by Nicola.sa » Mon Aug 09, 2010 1:30 am
Can debts to family be included on an IVA and if so how does this work?
 
 

MelanieGiles

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Post by MelanieGiles » Mon Aug 09, 2010 8:21 am
Just to mention that debts to family members are deemed to be associated creditors, and there are different rules as to how these creditors vote at creditors meetings. Your IP will be ale to explain this to you more fully, when you are ready to present your IVA.
Regards, Melanie Giles, Insolvency Practitioner
 
 

plasticdaft

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Post by plasticdaft » Mon Aug 09, 2010 9:14 am
Would I be correct in saying that family members owed money are often asked to forego any dividend to allow a higher return to the remaining creditors?

Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
 
 

Michael Peoples

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Post by Michael Peoples » Mon Aug 09, 2010 9:42 am
Some creditors do ask for family members to step aside for dividend payments as they believe the debt will eventually be repaid after the IVA is over.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

Nicola.sa

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Post by Nicola.sa » Mon Aug 09, 2010 10:14 am
So how does the voting work then?
 
 

Michael Peoples

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Post by Michael Peoples » Mon Aug 09, 2010 10:31 am
If there are family members voting for and another creditor voting against the IP must take a second vote. The family members vote is then removed and there has to still be a simple majority of other creditors for the IVA to be approved.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

MelanieGiles

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Post by MelanieGiles » Tue Aug 10, 2010 1:16 am
By simple majority - Michael means 50% rather than the 75% required including all creditors.
Regards, Melanie Giles, Insolvency Practitioner
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