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    IVA completed successfully but Debt Free Direct asking for more - help!
    • #1
    • 16th Apr 11, 5:33 PM
    IVA completed successfully but Debt Free Direct asking for more - help! 16th Apr 11 at 5:33 PM

    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
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