largest creditor has rejected my IVA proposal

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Mio

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Post by Mio » Wed May 05, 2010 1:42 pm
Hi
Have just heard back from my practitioner that my largest creditor has rejected my IVA propoiasal after an adjournement and thinks bankruptcy is the only option for best return to shareholders etc; This is my second proposal and with no income only assetts to sell to repay creditors need to be in control and avoid bankruptcy at all costs. I am not sure how the voting went but my practitioner seems concerned about this creditor because i owe the most amount monies too and has indicated that we needed their support.What do i need to do know?
 
 

Michael Peoples

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Post by Michael Peoples » Wed May 05, 2010 1:49 pm
I am guessing that your IVA was based on selling assets and distributing the funds to creditors via a one off IVA. If this is the case and the largest creditor has rejected I see no reason to avoid bankruptcy as your assets were to e sold anyway. The costs will be much higher than in an IVA which will diminish the return to creditors but you have made an offer and they rejected it.
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 » Wed May 05, 2010 4:33 pm
Who is the creditor?
Regards, Melanie Giles, Insolvency Practitioner
 
 

Mio

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Post by Mio » Wed May 05, 2010 5:47 pm
MelanieGiles wrote:

Who is the creditor?
The creditor is Allied Irish Bank
 
 

MelanieGiles

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Post by MelanieGiles » Wed May 05, 2010 8:28 pm
How strange! If find them a very supportive creditor. On what basis are they rejecting your proposals?
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Mio

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Post by Mio » Wed May 05, 2010 9:28 pm
MelanieGiles wrote:

How strange! If find them a very supportive creditor. On what basis are they rejecting your proposals?
It is a lot more complicated...The first proposal we decided to show only £30,000 of debt instead of £86,500 - two reasons for this;
a) Only 12 months ago i paid £30,000 in borrowed cash to the bank because of immense pressure from them. The two lenders one HP company the other a finance house have suuffered losses because of my intended IVA.(If it goes through - It is not looking good)
b) I sold two properties to part repay the loan and again because of pressure from them and because i had several aboerted sales on one of the properties 18 months ago during the hight of the downturn. I felt forced to accept an offer £50,000/£60,000 less then the asking price.I have threatened to complain to FOS which has not helped my cause/IVA but feel very grieved about my treatment and bullying tactics by the bank.
I have of course mentioned all of these points and feel disgusted because of my goodwill shown to repay the debt in full. The property sold £50,000 less then the asking price was always earmarked to repay the bank. We of course ammended the figure to the full amount in our second proposal.
The answer given for not amending the proxy after the adjourned meeting was that they believe that bankruptcy would be in the best interests of the creditors in this particuliar case.
 
 

MelanieGiles

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Post by MelanieGiles » Wed May 05, 2010 11:17 pm
If you have misdeclared creditors in an earlier submission, perhaps we can begin to understand the bank's scepticism of your offer. It appears to me that they are taking the stand that their, and other creditors, interests are better served by the wider powers to investigate of a Trustee in bankruptcy rather than the Supervisor of an Individual Voluntary Arrangement.

Which IP firm are you with as a matter of interest?
Regards, Melanie Giles, Insolvency Practitioner
 
 

Mio

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Post by Mio » Thu May 06, 2010 9:39 am
MelanieGiles wrote:

If you have misdeclared creditors in an earlier submission, perhaps we can begin to understand the bank's scepticism of your offer. It appears to me that they are taking the stand that their, and other creditors, interests are better served by the wider powers to investigate of a Trustee in bankruptcy rather than the Supervisor of an Individual Voluntary Arrangement.

Which IP firm are you with as a matter of interest?
Errington Walker in Dorridge, Solihull.
I did advise the bank of my intentions to declare a figure of just 30k only prior to the submission of my first IVA because of the reasons given earlier. They wrote back stating that the bank is not against an IVA subject to;
a) sale of properties
b) That the IVA should be for a period of 5 years to help with the current negative equity in some properties. The practitioner suggested just 2 years.
c)Any motor vechicle should be sold - advised worth 14k with personal hp loan
d) Recognition of full amount owed to the bank. Which we did.

My worry now is that my wifes IVA approved only in February will now fail because of my situation. The bank are aware of my wifes IVA as they are seperate. We have jointly owned properties. Her IVA was for two years aswell with the condition of selling an investment property and releasing a third of the funds to cover her iva.The remaianing two thirds of the balance would pay my creditors as my debt was larger. I and my wife have not worked for several months which is driving us both mad.Having lost our life savings in a local gym. We both need to work and avoid bankruptcy.
Thank you for your time it is appreciated.
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