IVA Problems - Consultant not paying my creditors

DouglasS

Hi.

My problem is simple.

I've been in an IVA for sixteen months. Paying £250 per month, regular as clockwork (£4000 paid in.) No missed payments whatsoever.
I've recently started receiving letters from creditors, saying I am in default, and that they are threatening to drop out of the IVA and enforce CCJ's, etc.
I contacted my "Consultant / advisor / administrator" and he reacted like a 2 year old, screaming down the phone at me, threatening to resign as my consultant, and to make me bankrupt.
I subsequently asked for a set of accounts and an explanation, and all I get is a pdf, with not so much as a sentence in the reply email.
I finally received what I take it is a bank statement, which shows my payments in, and his "fees" - £4000 in, £1500+ in fees, but no payment to creditors.
I've now forwarded these accounts to the various creditors, and they are surprised as they say they would expect monthly or quarterly payments from the consultant under the agreement.

What can I do? I've already reported him to the IS people, but that is a slow process, and I don't want bailiffs repossessing my house in the meantime.

Foxy-Stoat_3

First of all bailiffs cannot repossess a house without a court order and I assume that your mortgage is not part of your IVA.

When you entered into an IVA no creditor part of the IVA can chase you for money. They need to direct there correspondence to your IP, assuming they are a proper IP.

Did you sign an IVA contract before making payments? Assuming you had the 12 month review, you would of received a statement of payments/fees anyway.

DouglasS

I'll try and add the bits and pieces.

I can confirm that my house is NOT part of the IVA, although I've agreed an equity release for the end of the period.

The guy is supposedly a proper IP. Checked the register, etc.

The IVA was signed on 23 April 2012. I started making payments in June 2012 (£250) and have paid 16 payments now.

I got no review after 12 months (I'm assuming April-June time would have been right, but nothing.) No copy of records or anything.

In August, I got a letter from one of the creditors, threatening the sale of my house for their debt. I phoned my IP, and got a load of abuse for doing so. He threatened that he would make me bankrupt, and that I could complain all I want, he didn't care.

I then complained to the IS and told him so. He replied that he'd prefer to talk to me through a third party anyway, because he didn't like me anyway. I thought this incredibly childish, but then asked him for a set of accounts.

Eventually (After I had to threaten to get my lawyer involved), he sent me a set of bank statements. They showed my payments in, and £1500 in "fees" but nothing out.

I've subsequently had a creditor write to me, stating that they've dropped out of the IVA because of non-payment, and are planning to get an order on the house to force sale. I've sent them the accounts, to prove I've been paying, but not heard back yet.

Foxy-Stoat_3

Your IP sounds like a 10 year old child who got told to get off his X Box at 11pm because its school the next day.... LOL

You should of had an annual review 12 months in, that is part of the requirements. I would find out for sure if this guy is a proper IP and report him to the relevant ombudsmen as he doesnt sound like he is.

Your creditors are unable to come after you for the debt once a valid IVA contract is in force. You should read up on your contract as there will be a list of people to contact in the event of a complaint.

For someone to force the sale of your house they would need to serve papers on you, go to court, win and assuming your mortgage company agree, apply to the court for a repossession order, instruct baliffs and kick you out.....all of that would probably take at least 6 months....they would lose straight away as you have a valid IVA contract though! The best they could hope for is a charge put on your house for the debt, again you are in an IVA so its legally binding for all parties.

Let us know how you get on.

DouglasS

I've complained to the Insolvency Services, but they are so ridiculously slow. It's one of those "We'll reply in 15 working days, then wait another 15 days...." scenarios.

I've got a lawyer's appointment, I'll update after that.

Thanks all.

DouglasS

After a tirade of abuse from him today, and the evidence that he has not paid a single creditor a single penny from him over this IVA EVER, the police are investigating him for theft.