only two creditors have applied for me to repay

[dannyboy]

I have been advised by my IVA company that only two creditors have applied for me to repay them. I've been in my IVA for nearly two years now, can the other creditors apply for monies further into the term? If not, do I have to keep paying for another 3 years?

[Cybus]

Would I be correct in assuming that ...

Only 2 creditors have submitted claims in the arrangement, which is nearly two years old?

If that is what you are saying, then yes, those other creditors who have not yet submitted a claim can potentially have right up to the end of the IVA to submit a claim.

What your IP will soon be thinking of doing is issuing what is called a Notice of Intended Dividend to your creditors. That is forwarded to all creditors who have not yet submitted a claim and gives them a date by which they have to submit a claim. Their failure to do so could potentially cause them to be excluded from that dividend payment.

However, that does not mean a creditor failing to submit a claim for a first dividend is automatically excluded from future dividends!

Your IVA term will not be shortened by failure of creditors to submit a claim, it would in simple terms mean that the other creditors will get more.



Tell it like it is.

[dannyboy]

Thats excatly what I'm saying. Do they submit a notice at every review? Also I asked for a final settlement figure and the figure I got back was far bigger than my original debt. I was under the assumption I would have to pay back a smaller amount that would appease the creditors requirements?

[MelanieGiles]

Most good IPs will have creditor claims agreed by the end of the first anniversary, apart from HMRC who do sometimes take a little longer.

It is interesting to note that under the proposed SIVA changes, creditors will only have 90 days to submit their claims or they will be left outside. That ought to spur on some of the more tardy creditors and make the whole system far more effecient.

How did your IP calculate the settlement figures as a matter of interest?

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[dannyboy]

Im not sure to be honest. They said it would be based on a pence per pound figure but I wasnt sure what that figure was,whether that be a .0 pence per pound I really dont know. The end conclusion Im after really is, if my creditors do not submit a claim is there anyway whatsoever that I can get out of this early without paying an early settlement ?

[MelanieGiles]

Unlikely! Unless you can afford to pay the creditors and the costs of the IVA in full from your ongoing contributions. Why would you want the IVA to end early, having originally agreed to pay for a five year period?

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[dannyboy]

Its not so much that I want it to end early, its the fact that if I'm not paying my creditors then the money Im paying is just going to a company that is making profit from it and if thats the case does it not kind of defeat the whole objective?

[MelanieGiles]

Your company will not charge you any more for dealing with two creditors than they would for dealing with 20. And I am afraid that nobody does work for nothing these days!

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[dannyboy]

Thanks Melanie

So the situation is that every annual review I have the IP will give my creditors 90 days to submit there claims? Once the 90 days is up they cannot resubmit for monies until the IP invites them again at the next review?

[MelanieGiles]

No - the 90 days relates to SIVA procedure which has not yet been implemented and will not apply to your case.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[cr15py]

There is a clause in my modifications from TIX that states:

"Unclaimed funds

Any unclaimed funds in excess of £200 in aggregate after the final distribution to the creditors are to be distributed pari passu to those creditors claiming. If unsecured creditors funds are less than £200 in aggregate these may be returned to the debtor who shall be provided with a list of persons to whom they are payable"

Is this the kind of thing Dannyboy is talking about, or is this something different?

Visit my blog at http://cr15py.blogs.iva.co.uk

[MelanieGiles]

No - this refers to creditors who fail to cash their cheques.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[dannyboy]

Thanks, whilst I appreciate your help this still doesnt answer my question. I clarification on creditors who do not submit, are they able to at any time throughout the rest of my term. And whilst I agree that no one will do anything for free now adays if those creditors dont apply where is the money going to and how much profit are these people making? Also does an IVA HAVE to be for a minimum of a 5 year term?

[MelanieGiles]

Creditors can submit claims at any time during the IVA, unless your IP has given them a final day for proving and they fail to provide details of your claim.

The money that is allocated to your IP fees is being well used to supervise your case and chase up those creditors. You agreed to the level of fees when you signed your proposal, and also to the duration. IVAs can run for any length of time, but the usual period is for five years which has been set by creditors.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[dannyboy]

Thanks for your advice Melanie and all others that contributed