What happens if..

[ivoriva]

Hi all,

Say a creditor was on your IVA proposal but didnt vote. The IVA then gets approved and details are recorded on the insolvency register. Then some period down the line, a creditor claims they werent aware of the IVA, or the papers were misplaced etc(ie an admin error).

Anybody know what would happen then? Would they have to join the IVA, would they be able to cast another vote, or could they decide not to join the IVA at all and pursue you personally for the debt? Remember the important part being, they were listed in the approved IVA proposal so the error wouldnt be the debtors!

Just asking as I still have one creditor that is still calling, requesting payments and denying existence of the IVA - 3 weeks on from the approval of my IVA.

[saz]

I wouldnt like to say for definate but i would say they would get their chance to vote and be included in the IVA, Would their vote make a difference?? did all your other creditors vote yes?

On the road to recovery IVA accepted
59months to go

[MelanieGiles]

Hi ivoriva

I can only talk from my own experiences as one of the forum experts. Others may have differing views of how to treat this.

So long as your IP can show that he/she was aware of the creditors, and they were properly circulated - in my practice we keep detailed Certificates of Posting for each creditor envelope - then the creditor will be bound under the terms of your IVA. Your IP ought to also have written to the creditor at least once prior to sending out the proposals, so it would seem odd for two or more letters to have gone astray.

The creditor who is calling you are probably yet to update their internal records. I would not worry about this any further.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[ivoriva]

Thanks Saz & Mel. Of those that voted, they all accepted. There were no rejections. Even if this creditor could still register a vote, they couldnt alter the outcome. (46k accepted, if this creditor rejected, it would account for 7k - approx 13%, way off 25% needed).

Its interesting to know how the process works Mel, thanks for that insight. It sounds like all should be well and it is a internal issue with creditor as you suggest, ie just slow to update records/pass on info. Its just I got a letter from them saying they will send a DCA to the house, which I would prefer not to happen! However, the letter was dated 9th May and received 24th May. That probably sums up their internal issues! I wont mention who they are, just the fact they are a DCA called mercers who are infact part of Barclays. Ooops, did I say who they were?

[Oliver]

I agree with Mel on this one. Send all the correspondence to your IP and let them deal with this.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[ivoriva]

Thanks Oliver - I have emailed my IP and they have confirmed they will write to mercers and barclays to get them off my back.

[finebridge]

hi ivoriva,

Just a quick note to say that we have the same views as Melanie & oliver. i hope this helps put your mind at rest.

kind regards

Nicola

Finebridge Ltd
22 Laud Street, Croydon, CR0 1SU
0800 180 4212
www.finebridge.co.uk

[gizmo]

For several weeks after our IVA's were approved we received calls from creditors denying the existence of the IVA. Most of them we could get rid of as they had voted at the meeting so it was a nonsense to deny all knowledge of the IVA at all as some of them did. i did have a chase from one creditor who didn't vote but after i explained the situation to them and after they had "made enquiries" the missing paperwork turned up at their end so they had received everything after all. I'm sure one hand doesn't know what the other is doing most of the time with such big organisations.