I am 3 years into my iva

[wende]

I am 3 years into my iva and my parents have offered a loan to finish the iva early. 3 of my creditors have not come forward in the 3 years to be payed a dividend. How will this effect my chances of finishing the iva early if they dont vote in accepting an early settlement?


wendy

[MelanieGiles]

Hi wende and welcome to the forum

I can only speak from my own experience, and other experts on the forum may well have differing views, but as long as the IP has made every effort to chase these claims - can I ask who the three creditors are? And has served this with a formal notice under Rule 11.2 of the Insolvency Rules 1986 to claim within a certain time period, then they will excluded from the dividend. This leaves the other creditors to vote upon your revised proposals.

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

[wende]

Thank you Melanie for your reply.

The creditors are NTL Barclays Bank and Capitol Bank which amount to about £13000 I have been paying £650 pcm for the past 2 years £550 the first year due to circumstances changing and i have put up the amount without being asked to. My Debt was £38000.

wendy

[wende]

I forgot to say that the 3 creditors have been served with a formal notice under Rule 11.2 of the Insolvency Rules 1986 and to claim within a certain time but they still have not come forward.
I was also wondering if i will have to pay the whole amount of out standing debt that is owed to the others who have come forward or will it be a dividened of what i owe? plus the IP's fee's ??

wendy

[DebtDummy]

wende Mel advised you correctly. I just wanted to add... those three children are adorable![:)]

All I have left is my humour.

View my blog http://www.debtdummybankruwoman.blogs.iva.co.uk.

[MelanieGiles]

If I were your IP, I would have chased up Barclays via KPMG who vote for them and Capital Bank via Grant Thorton. This is just my style, and I'm not saying it is the right way, but an IP is responsible for returning monies to creditors and it is fairly easy to chase well known banks.

That said, if the two creditors have been given every opportunity to submit claims, and haven't dones so, then your IP is perfectly within their rights under insolvency legislation to exclude them from the right to recieve a dividend.

You will need to ask your IP for a settlement figure. If they are happy to exclude Barclays and Captial One, then you will only need to pay over enough to meet the other creditors claims in full and your IP's costs and disbursements.

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