www.iva.co.uk

we are 12 months into our iva and have just recieved our annual report to creditors. in it it mentions that 3 creditors have yet to file a formal claim, my question is 'how long do they get to file a claim' and 'if they don't claim, does the money become non recoverable?' it would make a big difference to our debt (£11 000) from the 3 creditors. any help would be appreciated as our IP is incommunicado and unhelpful to say the least.

Hello barbarella

That's actually quite a difficult question to answer because there are a lot of rules relating to paying dividends out to creditors when some have not claimed, and the answer partly depends on the pokicy of your IP.

The most reliable answer, however, is that the IVA cannot be concluded until the IP has got the creditors to claim and, in practise, if they are normally lending creditors they will eventually get round to it.

There really isn't any way that these debts can be written off if they don't claim, which I think is the main purpose of your question.

Hope that helps.

The point to bear in mind is that you will not benefit at all if certain creditors do not claim, as the monies you pay into the IVA will simply be paid over to the other creditors. Of course if you were paying 100p in the £ to creditors, there would be a direct impact on you.

Do you know which three creditors are yet to claim?

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

Hi
With about 200 IVAs proposed each working day you can almost understand why some creditors do not confirm the debts straightaway.
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

But when SIVAs come into play, Andy, they will only have 90 days to get those claims in or be left behind. That will be very interesting indeed!

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

Hi,

I have just joined this forum i have recently had a copy my first annual IVA report. In there my IP quotes:

'If i do not receive a statement of claim together with supporting documentation (ie statements etc) by 30 Jun then such creditors may be excluded from the arrangement (rule 11.03)'

Attached to my report is a list of all my creditors (8)...only 1 of them has submitted a claim with supporting docs which accounts for around 6% of my overall debt. I am already quite close to paying this one claim off in total (100%). I would be really interested to know if none of the others reply exactely what happens to the money i pay in if it exceeds the value of the one confirmed claim? Does your IVA finish early?

I'm glad this question was asked. only 3 creditors from my 10 from memory have claimed and i am 18 months in.

They only total £6k out of my total 38k debt..

I'm offering 40p/£1 and would love to know what this will mean/when they must claim etc

Just when I thought I was getting the hang f this IVA.....I've read annual review report and 3 of my debtors haven't claimed. I take it this is common practice??

So, if the creditors don't claim does that mean that they other creditors (that have claimed) share the money that would have been paid to the ones that haven't claimed? (what a mouthful)

If they all reached 100p/£1 what would happen to the excess funds?

Technically, the creditors who have not claimed can be excluded from receiving a dividend payment, although in reality the IP will probably continue to chase them - especially if they are large banks.

In the event that creditors simply refused to claim, then the money they would have been entitled to receive will be distrubuted on a pro-rata basis amongst your other creditors, and any funds in excess of a 100p payment would come back to you.

Thanks for this.

3 of my creditors (worth 6k) have claimed, the other 9 worth 26k haven't so you can see why i was wondering if i might get anything back lol Wishful thinking.

So would the IP continue to chase the banks even after the 5 year period or do they effectively have that amount of time?

I guess it's the former and i assume they won't "refuse" the monies so in reality won't see anything back lol

Thanks again

The IP ought to have this squared away in year 1 not year 5. If creditors have not claimed by the end of the fifth year, the IP will have to exclude them and distribute to the others.

lol. i love the "ought" lol.

I'm only 18 months in so i'm assuming that they will sort it in the next 42 lol. Finger's x'd they don't though!

You've been a great help (as ever)

Thanks so much )

I received a copy of my first annual "Report to Creditors" earlier this year and have 2 creditors who have not yet claimed. One is the company to whom I owe the most!!

I know it sounds daft but I often still look at the "report" - it is reassuring to see all the payments and distributions set out in black and white!!! I hope that in 2012 I will be the proud owner of a full set of five annual reports!

Just to add - seeing Catallus' post above made me realise how much I enjoyed his incisive and plain-speaking posts. Its a pity he doesn't contribute any more.