I have offered a full and final settlement figure via my IP but am told it could take 16 weeks for the report to be drafted with a further 28 day notice period allowed for creditors. 5 months before the creditors meeting even takes place? Is this acceptable?
Comments appreciated.
Regards
No it is not acceptable ! But some think it is (Payplan being one). They should draft within 3 weeks and then give 21 days notice. But getting them to do is is another matter -- you need their support, so cannot be heavy handed.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
If it is Payplan, make sure they do not put a bankruptcy clause (which they probably will!) If so they can, and will take it out.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I wrote on the 17th May to request confirmation that all of my documentation had been received and nothing further was needed from me at this time. (I had not received any acknowledgements to my previous emails when I sent documentation through, despite my requests for such). No reply received so I sent a stronger email copying in the complaints email address on the 24th May insisting that I get a response by return.
This is what I received yesterday (25 May)
We did response to your email dated 17th May 2017 on 18th May 2017 at 9.10am and advised the following
Thank you for your email.
I can confirm receipt of your documents. Your case is currently with the Variation Team who will draft the variation report. This can take up to 16 weeks and will be issued to you via post and email. Once approved by yourself a meeting will be set. A 28 day notice period will need to be given to your creditors. A member of the MOC team will contact you on the day of your meeting and advise you of the outcome.
I hope this clarified the current status of your account.
Kind Regards
I was told originally when I enquired about making a full & final offer that it could take a couple of months and was I happy to continue making the £354 a month payment which I said I was. On this basis I could be paying an additional £2k on top of the £6k F&F offer I've made.
Are there any protocols or industry rules I can quote? There seems to be no urgency at all!
This is really stressing me know and would appreciate any advice.
Have a look at your terms and conditions as this usually states a meeting must be called by the IP within 21 days of a written request. You can quote this to your IP and if they refuse to adhere to this you could complain to the Gateway.
You need to complain again I'm afraid - as Micahel says look at the variation terms that formed part of your IVA - probably in the appendiced T&c's. That's where it should state they have 21 days. Make sure you state in writing that your offer will be reduced by all contributions paid in the meantime.
Hi, thank you for all the good advice which has paid off. Having complained, the draft report arrived almost by return. I need to agree the report and then the meeting called which will put us a long way outside of 21 days but it's a step in the right direction.
Now I am looking at the figures on paper I am concerned about the reduced pence in the £ amount and whether this will be accepted.
Our original proposal had total contributions of £21,240 (£354 per month) with equity of £26,775 giving a total of £48,015. This gave 38p in the £ after expenses.
The proposed variation has contributions to date of £15,576, plus PPI claims £4,274 with a additional lump sum offered of £6,018. This gives a total of £25,868. This gives 16p in the £ after expenses.
The difference is down to the equity amount in the original proposal but my understanding is that it would be highly unlikely we could get a remortgage and therefore have to extend by 12 months. This would give an additional £4,248. On this basis the total contribution would be similar and return about 16p in the £. However, this isn't brought to the creditors attention. Will they be aware that the equity is unlikely to be available and be able to appreciate that the offer made is very similar to the outcome if the IVA is allowed to run it's course with the extra 12 months? I am surprised that the report doesn't mention this but is this because the creditors will already appreciate this fact?
Finally, the contribution includes payments to 31 May but I have made another since and likely to be at least one more. These payments aren't included in the variation report (As they hadn't been received when drafted) What happens to the payments I continue to make? I am happy to allow them to be included in the offer but how do he creditors know that?
By IVA terms a 16p dividend is still pretty good. Hopefully the IP put in his recommendation to accept, which goes a long way. Also bear in mind that they will be saving some on administration, so the return will be healthier in reality than on paper. There is also the "bird in the hand" factor and the earlier opportunity for the creditors to write toxic debt off of their books.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Ask that the offer (and draft report) is amended to include a clause in your variation that any contributions made in the meantime whilst a decision is made will be deducted from the lump sum.
You can also ask the IP to provide some information about what the estimated dividend would look like if the variation is not accepted and the IVA is extended and continues on etc.
