I am a creditor & over the 2 years IP took all the money, i didn't get anything

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by marcin978 » Sat Aug 12, 2017 5:32 pm
I got a question from a different angle.
I'm one of the creditors of the guy who entered IVA 2 years ago.
He owes me 22K for building works, and this situation put me on the edge of bankruptcy when it happened.
he also owes british gas 60k, one more contractor 15k and bank about 40k.
through the IVA he supposed to pay back about 70k, and in paper work it's stated that we (creditors) would get about 60p return per £.
Now 2 years into IVA he paid 17k, and I have t seen a penny from this,
The IP claims expenses of around 18k so far - they have some ridiculous hourly rates (managers 300/hr, support 100/he, etc) - and that amount is for the hours they spent on this particular case (at least it's what they claiming in the annual report).
Now - my question is - can I challenge that or complain to some regulatory body?
It seems to me that after the Iva is finished - the debtor will be debt free, all the money will go to the IP, and we, real creditors who lost money, will get nothing or some peanuts...
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by kallis3 » Sat Aug 12, 2017 5:47 pm

You will get paid a percentage of what he owes you and he will end up paying fees. Sometimes you are not paid straightaway. At the end the debtor will be debt free but you will have some money back. All IP's will charge fees so I doubt you will able to complain.
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by Foggy » Sat Aug 12, 2017 6:44 pm
The fees will be levied as agreed in the IVA and all creditors are bound by that -- indeed they will have probably proposed them themselves as a counter to the originally proposed fee structure. As part of the agreement the fees take precedence over the dividend, so, in the first couple of years the majority goes toward fees. However, as the IVA progresses the situation will reverse and, in the latter years more should go to the creditors than to the fees.

You can complain to their regulatory body via the government gateway --- information here:

https://www.gov.uk/complain-about-insol ... actitioner
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Lisa Thomas
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by Lisa Thomas » Mon Aug 14, 2017 8:15 am
You can complain but the fees would have been agreed by creditors when the proposals were originally accepted. Did you put forward any modification to reduce or cap the fees?

The rates you have quoted seem standard to me.
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Michael Peoples
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by Michael Peoples » Mon Aug 14, 2017 9:16 am
It is unusual for no payments to have been made to creditors by the end of the second year. However as the others have said the fees will have been listed in the proposal as would the estimated distribution dates so creditors had the opportunity to amend these at the original meeting had they so wished. Unfortunately for you, your debt is a relatively small percentage so you would have had little say in the outcome unless one of the bigger debts abstained.
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