We could be left in limbo indefinately

[hallm]

We paid a lump sum to settle our personal IVA last December. We have written to our IP 3 times to chase the Certificate of Completion. Our speiclaist IVA broker advises us, we cannot get a high street mortgage until our COC is received and our credit file is updated. In the meantime we are paying an extortionate rate of interest - we obtained a secured loan to settle the VA early, this was on the basis we would re mortgage at a better rate.
On 20.2.07 our IP advised us we should receive our COC by end of april. On 9.5.07 2007 she advised us that not all the creditors have presented their cheques. We wrote again on 19.6.07, but have received no reply. We could be left in limbo indefinately. Is there anything we can do? Concerned.

[YummySheep]

Your need to check what your proposal/chairman's report states about unclaimed funds (uncashed cheques). Creditors normally have 6 months to cash a cheque before it expires. After the 6 months it will depend on the clause in your proposal and the value of the uncashed cheques. If they are over £500 and your remaining creditors have not been paid in full, your Supervisor will pobably have to make a further distribution to the remeining creditors. But as I said, it will depend what your proposal/modifications say. Speak to your Supervisor, see if he/she has contacted the creditors that have not banked the cheques. They may not have received them, it may simply be a case of sending them a new cheque....

[MelanieGiles]

There should be no need to delay an IVA being closed due to uncleared cheques. If there is no provision for this in the proposal documents, your IP should send them to the Unclaimed Dividends department of the Insolvency Service.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[hallm]

Many thanks for the speedy response. We have checked our agreement and it states that the superviser should a)give 15 days notice to the creditors where dividends remain unpaid of his intention that at the expiry of that period the IP shall pay the amounts thereof to me/us with a list of persons to whom they are payable. b) I/we shall not remain liable to the creditors for the amounts of such dividend; and c) the superviser shall have no further duties, obligations or liabilites to those creditors.
We have written to our IP recorded delivery today quoting this particular clause. We are presuming if we do not get a satifactory response we would need to write to The association of Chartered Certified Accountants, quoted on the foot of our IPs letterhead. Once again, may thanks for the advice.

[MelanieGiles]

Correct - but do try and sort this out without having to go to the bother of an official complaint. Your IP is probably a very busy lady at the moment - most of us are!

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[hallm]

Dear Melanie
The reply I received today (5/7) dated 25/6/07 in reply to my letter of 19/6/07 and not by recorded delivery letter dated 2/7/07 reads as follows:

I write to advise you that the exclusion notices were issued to creditors who have not proven on 15 May 2007 and these have now expired.

Partial rejection letters are now due to be sent to creditors who have not proven their claims, giving them 21 days notice to provide the information. Upon the expiry date of the partial rejection letters I will then be in a positon to distribute funds received.

From my understanding crefitors prove their claims at the beginning of the IVA not at the end.

In the Comments on Progress and efficacy of the VA dated 30.10.06 the IP states under supervisers fees "I can report that additional time has has been incurred in agreeing creditors claims and preparing relevant reviews and documentation for the proposed revison meeting." In the Notice 257 it goes on to say that, to enable you to vote, forms of Proxy and proof of debt are enclosed which must be lodged with me before or at the meeting on 30/10/07.

I now note to my horror that we have a 'Breach of Arrangement' for another client, in our bundle of papers.

In the original IVA agreement under 'Dividend and Distributions' it states. Whenever there are sufficient funds, she shall subject to retention of such summs as may be neceassry for expenses declare and distribute dividend amongst creditors in respect of debts that they have respectivley proven............

I am really confused.

[hallm]

Thanks for the advice received, we appreciate why you are unable to comment.

We have paid over £43,000 into our IVA and the creditors will only receive around £15,000. There must be a better way than this!!

I am sure we will resolve our situation eventually. In the meantime, we must keep paying the 18% interest on our secured loan rather than 5.59%, which we have been offered subject to the receipt of our Cert of completion.

Finally , this site is very informative. We wish we had known about it before.

Our Best Regards

[Adam Davies]

Hi hallm
Well hopefully your certificate should be issued in the next two weeks.
Those figures seem horrendous !!
43k in and only 15k to creditors,thats a cost of 65%,most IVAs are capped at 40% and my own at 35%.Doesn,t help the image of the industry at all.
Keep us posted

Andy Davie
IVA.co.uk Spokesperson

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

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

[batawi3]

My debts were initially 30K, I am paying back 9k to my creditors and 10k to my IP. I am also struggling with my payments and this month have missed the payment as I couldnt afford it. I am now contemplating getting out of the IVA and entering a DMP with the CCCS, this is my 16th month in my IVA and everything was fine until my eldest son had to go to after school club at an extra £160, then my Child Tax Credit was cut by about £200, which means that I now have an extra £360 to find every month. I have been managing since September to meet my IVA payments etc, but the reality is that I have to put my family needs first, such as food etc and not prioritise my IVA payments - if this leads to BR then that is what I will eventually have to do. Could someone please advise me as to what the official receiver looks at etc

thank you

[scaredkez]

hi batawi , the OR will look at any assets you have,ie house and car, what is it that is making you nervous of BR? so I may be able to help you, they don't come and empty your house of any furniture etc unless you have recently acquired very expensive items which i am sure you won't have, the IPA they set you is based on your disposable income which is nothing like an iva payment, anything i can help you with please ask, i know it is a very worrying time, but it is very painless, it is the last resort to help you deal with your debts, you have tried the iva and through unforeseen circumstances you now can no longer meet the repayments, the other thing with a DMP you are back at square one and will be paying for ever, this could also result in your creditors going for CCj's and charging orders, good luck!

kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/