IVA completed successfully but Debt Free Direct asking for more - help!
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Hi
I was wondering if anyone could offer advice on the following. My partner and myself entered into an IVA in Feb 2006 and we have just completed the full term of the arrangement having made all payments requested successfully. We have arranged a valuation of our mortgaged property and sent this to Debt Free Direct the supervisors of our IVA. There is no equity in our property and in fact it is approximately in negative equity to the tune of £45,000.
We were of course hoping for our completion certificate from our supervisor which would then allow us to begin clearing our bad credit record with the credit reference agencies, although Im aware bad credit records stay on our files potentially for another 12 months or longer.
We have just received a letter from DFD stating the following:
I refer to your recent query concerning the end of your voluntary arrangement.
After reviewing the provided information I note that you are unable to remortgage to release any equity for the benefit of your creditors. Therefore I can conform you have complied with section 2.2 of your IVA proposal.
As you are aware one of the creditors requirements was that a minimum dividend of 15% be paid. Due to an increase in the level of creditor claims it will not be possible to pay the required dividend which means that I cannot successfully conclude your IVA at this time.
There are several creditors yet to formally submit a claim into the IVA. Once the claims have been resolved we will be in contact to re-advise you of the position. Please continue to make your contribution until such time.
Any overpayment will be refunded to you.
Your sincerley
Joint Supervisor.
Can anyone please offer advice on our position regarding this. We feel we have completed the IVA successfully and are curious as to whether this is Debt Free Direct attempting to get more money out of us. As far as we were aware any creditors needed to formally submit claims at the time of the IVA's inception and not wait five years until its completion?
Any advice from those that have been through a similar situation or anyone who knows the workings and legalities of IVAs would be most welcome.
Many thanks
I was wondering if anyone could offer advice on the following. My partner and myself entered into an IVA in Feb 2006 and we have just completed the full term of the arrangement having made all payments requested successfully. We have arranged a valuation of our mortgaged property and sent this to Debt Free Direct the supervisors of our IVA. There is no equity in our property and in fact it is approximately in negative equity to the tune of £45,000.
We were of course hoping for our completion certificate from our supervisor which would then allow us to begin clearing our bad credit record with the credit reference agencies, although Im aware bad credit records stay on our files potentially for another 12 months or longer.
We have just received a letter from DFD stating the following:
I refer to your recent query concerning the end of your voluntary arrangement.
After reviewing the provided information I note that you are unable to remortgage to release any equity for the benefit of your creditors. Therefore I can conform you have complied with section 2.2 of your IVA proposal.
As you are aware one of the creditors requirements was that a minimum dividend of 15% be paid. Due to an increase in the level of creditor claims it will not be possible to pay the required dividend which means that I cannot successfully conclude your IVA at this time.
There are several creditors yet to formally submit a claim into the IVA. Once the claims have been resolved we will be in contact to re-advise you of the position. Please continue to make your contribution until such time.
Any overpayment will be refunded to you.
Your sincerley
Joint Supervisor.
Can anyone please offer advice on our position regarding this. We feel we have completed the IVA successfully and are curious as to whether this is Debt Free Direct attempting to get more money out of us. As far as we were aware any creditors needed to formally submit claims at the time of the IVA's inception and not wait five years until its completion?
Any advice from those that have been through a similar situation or anyone who knows the workings and legalities of IVAs would be most welcome.
Many thanks
0
Comments
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HI there. First of all ... Well Done for getting this far.
Unfortunately, if your proposal guaranteed a 15% dividend you are tied to that and the IVA will run until your agreement is satisfied. The only way to change that is for your IP to call a variation meeting and ask the creditors if they will agree to accepting payments to date to settle.
I would speak to your IP, firstly to ascertain a ball park figure ( they won't know exactly until all claims are in) as to how short of the promised dividend you are.
AFAIK creditors can amend amounts owed (if they can prove the change) at any time during the IVA. If those creditors that haven't submitted a claim fail to do so within six months the monies will be divided up among those that have (which would increase their % ... maybe over the 15%).
Maybe Charco can explain the system for claims.0 -
Hi.... thanks so much for that reply... really helpful. Charco... if you could advise further that would be great. thanks.0
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