what are the rules

debtmeoutofhere

What are rules on timescales for IVA Settlments.

I proposed early settlment, filled out validation paperwork on the 20th July. IVA Prac suggested 11.280k figure, on 30k debt, with 19k already paid back. 3 years in.

I heard nothing until 13th Aug, when letter from IVA company arrived asking for validation docs. They confirmed next day that was their error to ignore it, they had all my paperwork.

Tues 18th Aug the report prepared for creditors landed at home, In which is it apparent repayment will be over 30K, doingthe maths. It also informs of the creditors meeting being called for 18th Sept. This is a further 31 days wait.

Is there no time limit imposed on the IVA in which they would be expected to have this process in place. As it stands they have taken nearly 50+ to get this far.

Also I feel they have caused the delay to enable them to take an additional payment in Aug 28th . This amount is £530, not a small amount and also not included in the report to the creditors. I am tempted to cancel the DD because I feel they have dragged their feet and made caused this delay and if they had acted correctly then the creditors meeting would have taken place end Aug. What do you folks think. If I cancel payment in Aug, they can have it in Sept if Creditors reject me. Although 99% sue that won't happen. If all votes are by proxy and are in before 18th Sept do the IVA company come back early to me ?

All answer appreciated

Charco_2

Are you paying close to 100p in the £?

I dont understand. You've paid £19k so far towards a £30k debt and now you're able to come up with a lump sum payment as a a full and final settlement for the remainder of the IVA. Is this correct?

While you can of course end up paying over 100p in the £ in an IVA it does beg the question: were you insolvent in the first place?

In answer to your question:
There are statutory limits your IVA provider has to stick to in order to propose or vary. It would be unlikely (but not impossible) that your IPs would deliberately drag their heels over a thing like this. Even outside the statutory waiting times, they would need time to research, verify and draft the proposal... If you are three years into your IVA then they have probably already picked up the bulk of their fees (nominees in the first year and an annual supervisor fee for the remainder of the proposal) one month supervisor fees isn't going to make them fat! (they've likely already taken the fees as an annual cost anyway so they're already paid for this year type of thing!)

Pay your August contribution and hope that the variation goes through next month. Put the whole thing behind you and concentrate on enjoying your new freedom - hopefully!