contacted my iva company re missed payments

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normanaston
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by normanaston » Wed Jan 13, 2010 9:55 am
hello i have contacted my iva company re missed payments they are saying to allow to miss two payments or lower payments by 20% also they say they will need to increase payments to pay of the arrears i did mention to put the arrears on the end of the plan i am not very please with grant-thornton who are dealing with my iva there are other issue's which have happen other the last three still got debt collector on my back re
some of iva debt.can i change to another company!

 

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NTF Financial Solutions
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by NTF Financial Solutions » Wed Jan 13, 2010 10:06 am
There is no provision for you to switch supervisors in an IVA.
Call GT i am sure they will address any concerns that you have as they are a rebutable company and will any complaints seriously.

 

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Julie
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by Julie » Wed Jan 13, 2010 10:31 am
Hi,

Have you spoke to your IP directly about your concerns? Sometimes when you phone you speak to someone on the team and to be honest you don't always get the answers you deserve.

Why don't you email your IP a list of your concerns - that way you'll have a record of your correspondence.

 

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normanaston
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by normanaston » Wed Jan 13, 2010 11:25 am
hello thanks for your reply. i have e-mail them about my concerns they seems to think it ok for for debt collector to continue with there haressment with calls six time a day, i have explained that at the moment we hope have financial problems with our business i.e cashflow
we have number of things we are going to do in 2010 we are meeting with the bank in a few weeks with a business plan i am very hopeful we will return to a better position and start make profit but i feel that grant-thornton do not seem to understand we cannot pay back creditors unless we make enough money from the business we do need one more month not paying the iva which is £716.00 per month making three missed payments.
thank again for your reply
norman

 

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MelanieGiles
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by MelanieGiles » Wed Jan 13, 2010 11:26 am
You can actually change Supervisors during an IVA, but you would need to make an application to Court which would have to be based on very good reasons, and you would need the consent of the current Supervisor and find a new IP prepared to take on your case. Unless your complaint against your current firm is of a serious nature, then I would try and stick with what you have got.

Grant Thornton are a firm with a very good reputation in this industry, and I know the insolvency practitioners there very well. If your need to miss the payments is a temporary one, then it is reasonable for your IP to expect those arrears to be made up over time - but if you can demonstrate that it would be impossible for you to increase your payments then they should be added to the end of the IVA.

Have you thought about trying any other way of finding the money - friends or family, mortgage payment holiday?

 

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Adam Davies
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by Adam Davies » Wed Jan 13, 2010 11:28 am
Hi
Unless you earn overtime I can never see how anyone can be expected to pay extra each month to catch up on arrears ? Afterall in an IVA you are paying 100% of disposable income so tagging any missed payments onto the end seems a far more sensible approach.
Why not have IVAs where a debtor has to make 60 payments over 72 months ? this will leave room for payment breaks as and when needed.
Regards

 

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MelanieGiles
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by MelanieGiles » Wed Jan 13, 2010 11:38 am
Some people will do it by cutting down on housekeeping or contingency expenditure, others are unable to do so.

Not sure I am a fan of the opportunity to miss up to 12 payments over an IVA period. I find that the regular nature of payments is what keeps people on track. The cynic in me says that IPs would not receive any payments in December if that much flexibility were to be brought in!

 

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Adam Davies
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by Adam Davies » Wed Jan 13, 2010 11:44 am
Hi
But would that be such a bad thing Mel ? It would help with the unexpected bills, help out at Xmas etc.
The IVA could finish anytime between month 60 and 72, just as soon as the 60 payments had been made.
People could manage their own IVAs without the need to go back to the IP, obviously there would have to be conditions, eg no not more than two missed payments per year, no missed payments in first six months etc etc
Regards

 

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MelanieGiles
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by MelanieGiles » Wed Jan 13, 2010 11:51 am
It could work Andy - but I would not be a fan. Running an IP practice, keeping tabs on everyone's payments, and wondering sometimes why clients don't pay when they haven't contacted you with an explanation can be bad enough - but to openly give carte blanche to miss more would not be sensible in my opinion.

I guess I equate an IVA repayment plan in the same way as I equate the loans taken out in the first place. They were based on regular monthly repayments under contract, and so is an IVA. And I do think that the discipline of regular payments helps people to keep on track.

I know these views will not be popular with forum posters who are in IVAs at the moment, and would stress that my response comes from an IP perspective. I am sure if I were to be on the other side of the fence I would fully support Andy's suggestion!

 

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Julie
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by Julie » Wed Jan 13, 2010 12:18 pm
I think Andy's idea could help more IVA's to be successful but I also see it from Mels point of view. There must be a compromise in there somewhere [:)]

 

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Michael Peoples
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by Michael Peoples » Wed Jan 13, 2010 1:07 pm
I have to agree with Melanie that IVAs should have some form of defined structure. 60 monthly payments over 5 years with the IP having a little bit of discretion would be suitable to the vast majority of people. Where there are unforeseen difficulties there remains the options of variations and full and final settlement.

I think the problem is that IVA payments are often too tight from the beginning which causes the problems. If the IPs were left to do their jobs properly and propose IVAs that are affordable and sustainable, clients would not get into difficulties as often. Clients would then be less likely to need payment breaks or reductions as the income and expenditure accounts would allow for contingencies.

 

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normanaston
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by normanaston » Wed Jan 13, 2010 1:28 pm
thanks for your help i am going to contact my iva company today and have a chat some good suggestion from you all
thank again
norman aston

 

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Adam Davies
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by Adam Davies » Wed Jan 13, 2010 1:30 pm
Hi
Agreed Michael, realistic expenditure allowances are the key.
However the reality is that MANY people struggle with their IVAs due to tight budgets and unforseen problems and that many just can't speak to their IP to get the help that they need.
Variation meetings are time consuming and costly, I think that IPs need to be given greater flexibility and authorised missed payments tagged onto the end of an IVA must surely help everyone concerned ?
Regards

 

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MelanieGiles
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by MelanieGiles » Wed Jan 13, 2010 1:33 pm
I definately agree with us being given more flexibility. When Michael and I first started doing IVAs in the late 90's there was not as much scrutiny of expenditure levels and we rarely lost a case.

 

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zim zim
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by zim zim » Wed Jan 13, 2010 1:35 pm
I think Michael has hit the nail on the head! IVA payments are probably too tight-i think we all understand and agree the creditors want as much of their money back as they can get (and rightly so, i might add). However, if you push the debtor to the 'bare bones' every month-surely the whole process is doomed to failure which inevitably will either lead to bankruptcy or possibly a DMP!! Not what the debtor would want as a course of action but is forced into with the unrealistic guidelines and inflexibility of a tight/harsh IVA.
This is not by any means putting the blame on IPs because it is quite obvious that it is down to the creditors imposing stricter and tighter regimes.
Leaving it to the IPs and their staff to work out what is afordable & realistic for the debtor has got to be the sensible option!
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