Egg PLC and Full and Final Settlements

[pixieboy]

I wish I had found this site before I entered in to an IVA but regretabbly I didn't. The basic gist of my query is that I have been in an IVA for 16 months paying back 25 pence in the pound - total amount to pay was £17530 now down to £13,671. I have no assets i.e I rent and I cannot go bankrupt because of my job. When my IVA was proposed it was based on my earnings which were higher than normal as I was temporarily promoted in work. This subsequently ended and my earnings dropped by over £200 per month, in addition my circumstances also changed with the birth of my daughter. When I reported these facts no changes were made to the amount I was expected to pay each month in fact I was warned that not maintaining payments would lead to my IVA failing and thus bankrupcy and loss of job etc!!

Sorry I am not really getting to the point so here goes basically I have seen my daughter 3 times in the last year as I cannot afford to travel to see her...bit of a strain on my relationship but my girlfriend is very understanding! It has got to the point that I want to move to be closer to them so proposed a full and final settlement of £13,500 i.e 23p in the pound(funds donated by my father). I learnt today this was turned down by my creditors, well only Egg voted against it but their vote was 50% of the total votes. Seems there was a cluase put in by Egg when I entered in to my IVA that there could be no variation for two years. Only option now seems to be either not see my daughter or go bankrupt - great choices!!!

Any advice what really be appreciated as I am at my wits end!!!

[jpj]

Hi Pixieboy.
Welcome to the forum
I would try and get my payments reduced for the next 8 months and then offer a full and final again.
If you havent had a 12 month income and expenditure review I would demand one to take into account the new reduced earnings!

[pixieboy]

Thanks for the welcome.

I've had a 12 month review but my earnings only went back to my normal amount after the review. Plus I am paying my girlfriend maintenance which only started after the review. I asked about a review today when I was advised the full and final settlement had been turned down but even if I got a reduction for 8 months it doesn't help me much as I really want to relocate and that could mean me being without work for a while [:(]

[jpj]

As hard as it is, you should try and concentrate on the bigger picture. I would demand a review, which hopefully would give you a little more cash to visit your daughter more. start looking for jobs in the area you want to move to (on internet etc)If you move to no job and bankcruptcy that will be no fun either, and your daughter can only go some way to cheering you up.
8 months isnt that long...and your daughter will be there for many years to come!

[MelanieGiles]

What a silly modification that 24 months thing is - and an even sillier rejection from creditors turning down the ability to get 23p now rather than in three years time!

[pixieboy]

You don't need to tell me how silly these little things are but they really are major stumbling blocks to me. Whilst I might be able to get a 3rd party to find the extra bit to allow a full and final settlement of the full 25p I would appreciate any thoughts on if it is worth putting it to my IP with the 24 month clause there and can another creditors meeting be arranged so soon? in an ideal world I would have thought as all other creditors agreed a lesser amount all that needed to be done was to contact Egg with the revised proposal and seek their approval but I am not sure if that is possibly??

[MelanieGiles]

I am meeting with the two key people who represent Egg at creditors meetings next Friday. I will enquire, in general terms, why they feel that your offer may not have been accepted. Could you e-mail me your personal details so that I can respond to you directly.

[pixieboy]

Hi Melanie

It would be great if you could make some general enquiries. I will drop you an email with my details - I assume I can do this via your website? what information do you require?

Many thanks for taking the time to read my posting.

[MelanieGiles]

Just really an e-mail address as I would rather deal with this personally. Your name and address could be helpful as well.

[pixieboy]

Just thought I would give you an update as just received my Chariman's Report and it may contain information that will prove useful to anyone considering a full and final settlement. Just to summarise I've been in an IVA for approximately 16 months and offered £13,500 as I was advised that £13,600 would be payable during the remainder of my IVA (fund being provided by 3rd party who I will pay back).

Max Recovery and Natwest/RBS voted in favour of the early settlement and modification to the original report which stated there could be no variation for early settlement within 2 years.

Grant Thornton IVA Watch (on behalf of Egg Plc who insisted on the 2 year clause) voted against with 50.61% of the vote against 49.39% in favour. Abbey did not vote.

I thought my offer was not only fair and provided an early return comparable to what would be received over the course of the IVA but also provided the least risk to my creditors - having been involved in risk management for the last 9 years I am well aware how to calculate risk!!

A question I have is about Grant Thornton - who are they and is this normal for them? From a brief look on the internet I thought this company had a good reputation and could properly assess how to get the best return for their creditors!! Not sure how they assessed it in my case as from next month my IVA will fail as I am moving to England and will have no job for a time!!!

On a lighter note - there has to be some irony in the fact that all those big financial institutions are now going cap in hand to the government to bail them out because they have been irresponsible in the handling of their financial affairs and made bad decisions...lets just hope that they remember anyone can be plunged in to debt and are sympathetic at future creditors meetings!!

[Adam Davies]

Hi
I really can't understand why your offer was rejected by GT.
Hopefully Mel will make progress for you.
Regards

[pixieboy]

I'm starting to actually think my IP did not put my case forward properly, if at all!!

[james.c]

i am interested to know what happens, all been well i am offering a full and final settlemt after 18 months in an iva, but i too have the two year clause, i owed in total £28k which £6500 was with egg. I have twins and like yourself i have no equity i am still paying the same each month, even though i am paying for 2 babies. I might tell my ip that if egg dont accept i will fail the iva and go bankcrupt and then they will get nothing, because this could happen as my out goings have increased.

[Adam Davies]

Hi
Did you see the proposol that they put forward ?

[pixieboy]

I don't recall seeing a full proposal outlining my future circumstances but I do remember signing something offering the full and final settlement and it said it would be 23p in £ as opposed to 25p in £ as per my original IVA. I assume the IP must have thought there was a good chance of it passing for them to go ahead with it or am I just being niave?

The more I think about this and bounch things off forum members, the more that comes to mind as I just realised that although I offered the full and final settlement back in February by the time of the creditors meeting (21 April) I would have made further payments so the proposal of 23p in £ would have been incorrect and my further payments should have bumped the return up to closer to 25p if not more!

On another note I have received a new Income and Expenditure form to complete but how do I complete it for my future circumstances when I don't know what my income and outgoings will be??