Variation request

[Cupcake08]

Variation Request

My IP is a national charity. 4 years in it has run smoothly and the Creditors are getting more income then originally set out. For the last 2 years I have had anti social behaviour neighbours which has made me ill and as I have exhausted all means to resolve this. I decided to ask for a variation so I could make a full and final to creditors based on the outstanding amount of payments plus 1 year so I could sell and move into rented.

The original request was made on the 25th February. I provided full details, breakdown and quotes, I also disclosed issues surrounding my health.

The IP has now replied reiterating that my home is an asset of the IVA and if sold the full amount less the selling fees would go into the IVA so I am not entitled to retain anything.

I also changed jobs in March. Spent 2 weeks with previous employer and 2 weeks with new employer. My previous employer paid outstanding holiday when I left and I now have a pay increase with new job. My annual review is May.

I advised IP of change and explained clearly. They are classing this under the 50% rule based on my previous income amount, including income from new job.

I don't feel particularly well looked as a client by this IP Charity and am exploding with stress and trying to manage long term health issues in a difficult time. There is no advice per se and the emails back are clumsy. I feel very strongly that the only interests they are protecting are those of the Creditors.

I feel like I am acting in good faith; I want to settle my IVA in accordance with what was agreed but feel trapped. I don't think the IP or Charity actually likes variations and seeks to keep to the outcomes agreed at the start of the IVA. By my calculations they are getting what they were promised.

Any advice.....I am going mad.

[Foggy]

As I have mentioned on your previous post, if you sell the house the creditors are entitled to the proceeds, as per the standard terms and conditions.

In order to make a full and final from house proceeds what you need to is OFFER to sell the house to make a payment of £XX (you state what you are willing to pay over). The offer will state that, if it is rejected by creditors the house will not be sold --- you are selling it only for the purposes of raising the offer amount. Unfortunately, as I also said before, you have placed your cards on the table too soon and told the IP of your need to sell !

This has been done before, successfully, by others --- it is up to your creditors to decide if they want to agree to the offer, not your IP !

[Cupcake08]

Thank you Foggy, I note your point.

It is difficult to be tactical when the IP insists on full disclosure and transparency when requesting a variation. They do seem to have discretion to put variations forward to Creditors or not.

It is an odd state of affairs when there is more support on a forum than there is from an IPs advisor. I can honestly say they don't give a monkeys; it is a harsh lesson when someone is at a low ebb.

I recall how the IVA was 'sold' for want of a better word as a solution for debt; they persuade you of all the benefits but it is not flexible and life does throw curveballs. My experience is IP don't like variations and don't encourage them so beware. The IVA is a vehicle for recovering the maximum amount possible of consumer debt. It is important to bear that in mind when considering alternatives.

[kallis3]

If you want a variation, as far as I am aware, they have to put it forward. It is a solution and I am glad I did one.

Bear in mind you hopefully pay back a large amount of your debt and most IP's are flexible if you have problems, especially at the moment and has been evidenced by a few posters on here.

[Foggy]

Hi Cupcake. I am afraid that IP's, like everything else, vary from individual to individual and from firm to firm. I agree that the whole thing, though, is turning on it's head and, where the IP used to be concerned with the fair running of the arrangement, they are now becoming more concerned with the return to creditors. This, in part, has been engineered by the creditors varying fee structures from fixed amounts or time served amounts to a percentage of realisations: i.e. " Claw more from the debtor -- get paid more". One firm, in particular, has already been hauled to court for putting it's own interests first.

That all said, there are IPs out there that care about their clients, but, under harsh ecomonic times, they are falling by the wayside and being gobbled up by the 'big boys' or the 'playground bullies' (as some appear to be).

In the past I have campaigned for this all to be looked at and for some protection and mediation to be put in place for debtors, but got very little support.

On the variation front -- it is YOUR IVA and you have the right to propose a variation. Unfortunately, whether it sinks or floats depends on the support ( or lack of) your IP lends the application.

[Lisa Thomas]

I'm afraid you do need to remember that the IPs do not act for you - they merely Supervise the IVA and that you stick to the terms of your IVA.

They do not have discretion as regards a variation - if you put forward a variation they have to put it to creditors, however you need to give them sufficient information to ensure that creditors can make an informed decision on your offer, and ideally vote in favour of it.

Have a look here for some guidance on Full and finals:

https://www.youtube.com/watch?v=h4dozq9aGak&t=55s

[Cupcake08]

Thank you Lisa, much appreciated. I take and understand your point. I supplied all supporting information up front. I didn't expect to wait 2 months to be reminded how my property was treated in the IVA agreement. The response is designed to discourage and the response time and quality of the IP response is poor. I won't replicate what was written here but in some cases the sentence structure is so bad you cannot make out what is being said.

I have replied back to the IP company and requested clarification on points not understood and requested my case is handled by a different advisor.

I also understand a report is compiled for creditors for purposes of variation and that the IP would reflect their opinion on the variation. The idiot acting for the iP in my case states he is 'happy to now put forward a variation if I still want to go ahead'; he in actual fact had all the supporting evidence 2 months ago; I despair at how slack things are run and that matters regarding my finances and health are in the hands of inexperienced advisors. Is there no moral or ethical code for IPs and their advisors? Are IP advisors qualified and regulated also?
I am grateful for the advice of the forum; without it I would have no idea of what to do and who to turn to. I guess my mistake was signing up to an IVA factory; it is making a difficult situation for me very much worse.

[Lisa Thomas]

Yes every IP has to be licensed. There are a few different governing bodies - the main ones are the ICAEW and IPA. Look at your paperwork or your IPs website to see who they are licensed with.

We are also bound to follow an ethical code.

If you are still dissatisfied you need to follow your IP's complains procedure and can then follow up here if you are still unhappy:

https://www.gov.uk/complain-about-insol ... actitioner

[kallis3]

Your case worker and the call centre operators are not regulated as far as I am aware. I think that is what she is on about.

[Lisa Thomas]

I see- the IP is ultimately responsible so any failings by their staff will fall to them.