www.iva.co.uk

Hi, I now have my first review after 1 year. Despite making every payment, my IP is now saying that I have a shortfall because creditors want more and I have 4 creditors who did not attend the original meeting, and they may want more than was agreed - 65 pence in the £1. I thought once the original meeting took place and the majority of creditors signed up, that was it and the others had to follow. It seems like they've changed the rules part way through and my IP is now saying the IVA may have to be extended. What is to stop them extending it again and again in future years? Advice appreciated. Thx.

As far know if a creditor does not attend the crditors meeting they have to abide by the decision of the ones that do. If it is those creditors that did not attend that are seeking an increase in payments I dont believe they have a legal right to do so.
Only the crditors that did vote can demand an increase in payments, but then only if your circumstances have changed and you now have more disposable income.

I may be wrong, but I am sure an expert will be along soon to answer your question.

J.

If all of your creditors were included in the IVA, then even though four of them obviously didn't vote, they are bound by it and the original dividend. 65p is a good dividend.

I can't see why there would be a shortfall if you have made all of your payments unless there is some sort of modification in your proposal or your chairmans report. Have you read through that.

Usually an IVA is extended because of payment problems or because you cannot do an equity release.

Who is your IP?

Jan, I must not "hog" this post - just to let you know my eyes were fixed on Thursday - no close work for 4 weeks then in moderation. So soon I shall be able to read what has been going on - keep your fingers xed for Friday my friend!! D

David, that's excellent news, I'm really pleased for you. It'll be good to have both you and J posting again xxx

Elv5 great to see you. Take it easy and we look forward to seeing you back full time.

David that's fantastic news! So pleased you have been done and look forward to seeing you on here a lot once you are fully healed.

Everything is crossed![:D]

jcmmcg....seems odd that they can decide they want more at this time.....has your I & E changed dramatically?

The terms of the IVA cannot change at creditors instigation as you are suggesting - only if you default and a variation is proposed. I think you need to investigate these claims with your IP a little deeper.

Great news about the eyes David - we have really missed you on the forum and I hope the op has been a success.

Hi jcmmcg

It sounds like actual creditor claims received by your IP are higher than was estimated in the proposal. Check this out with your IP as if this was the case - and you are bound to a minimum dividend of 65p/£ - you are likely to have to find extra funds to achieve this.

DO ensure the claims are checked, however, to ensure creditors haven't mistakenly submitted an increased claim.

Debtwitch wrote:

Hi jcmmcg

It sounds like actual creditor claims received by your IP are higher than was estimated in the proposal. Check this out with your IP as if this was the case - and you are bound to a minimum dividend of 65p/£ - you are likely to have to find extra funds to achieve this.

DO ensure the claims are checked, however, to ensure creditors haven't mistakenly submitted an increased claim.

How does this work in practice? I'm in my first year of an IVA, when will I know that the figures in the proposal have been agreed by the creditors? I don't want any surprises!

Hi thefsg

The agreement in the proposal now is for the creditors to submit their claim in the Arrangement within 4 months of approval, so this should be a rare occurence.

You could ask you IP to confirm if all creditor claims have now been agreed and if this is different to the original proposal and has any effect on you.