I'm in an IVA which is failing, please help

[p_t]

Hi Guys and Gals.
Im in an IVA which is failing as we cant meet our repayments. We are in the first 18months of the agreement. It is a joint IVA with my wife. We have asked for a variation in temrs with our IVA practitioner by way of a third party raising the interest in our property. This is aprox £11,000. The third party has said they would place a charge on our property for this amount. This £11,000 offers around 13p in the £. Instead of the agreed 25P in the £.
The proposal was declined at the creditors meeting. However the IVA practitioner explained only 1 creditor voted and declined the offer and now she must file for bankruptcy.
I need some advice here. Is their any rules on the number of creditors that need to vote for the decision to be carried at a variation in terms creditors meeting and does the creditor have to have a certain stake in the outstanding debt.
If we are made bankrupt does the nomanie have to accept a third parties offer for the interest in the property??
In our case the interest in our property is less than the offered £11,000 in the IVA. Therefore in my view creditors in bancruptcy would reciece much less than they would if they accepted the variation, as its based on the market value of our property less loans secured on it.
Can we appeal against the creditors meeting?

Thanks for all your help, I would appreciate a response as I'm very concerned. Also my IVA practitioner took 5 months to reply to phone calls and letters when we asked for help.
Please can you offer some help.

[DebtDummy]

I can't offer any help, but you have my sympathy. Do not fear someone here who *can* assist you will do so. Hang in there and good luck!

[MelanieGiles]

Hi p t

I'm sorry to hear about your failed variation. Did your IP ring around to try and drum up support from other creditors, and try and outvote the one who was rejecting?

The majority required for voting at a variation meeting is still 75% based upon the value of debts.

In bankruptcy you do not have a nominee, but a Trustee in bankruptcy. This can be your old Supervisor if she decides to seek the appointment. So you could be dealing again with the same IP.

The effect of bankruptcy proceedings is that your interest in the property (ie the equity value) will vest in the Trustee (ie they will own it). In these circumstances get your friends to make an offer of settlement based upon the equity sum less a deduction for notional costs of sale - ie the costs which would have been attributed were the property to be sold - agents and solicitors fees usually.

My experience of variation meetings is that the creditors are rarely interested and generally it is fairly easy to get acceptance votes. I can boast that I have never had a variation proposal turned down - but I hope I don't live to regret confessing that in future!

I do not feel that there is much point in you asking your Supervisor to submit variation proposals again, and she will probably refuse. Accept that bankruptcy will leave you free within one year, and use your friend's money wisely to secure your home. Creditors will now get paid nothing - but that is not your fault it is theirs.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[p_t]

Hi thanks for the infomation. I will be contacting the IP today Monday. I will let you know what she has said.
One other question. Does the trustee in bankruptcy have to accept the offer of a third party to buy out our interest in the property, or can the trustee hold on to sell the property for a higher price in the future (within the 3 years)?

thanks again

Paul Turner