Creditor Appeal Against an IVA

TaxMan101

Hello All

I am a creditor (not the nasty one..)... the person in question wripped us off and caused us huge distress, and now has the audacity to attempt an IVA.

Unfortunately, I was not invited to the creditors meeting. The Practitioner claimed it was sent but I really never received it. I only received then notification that the IVA had been accepted my majority.

I have good grounds to recall a meeting of creditors (i already asked the practitioner but they refused...).. now I need to go to county court. All the advice online says you need to apply to the court? But do any of you no which court and what I need to submit? As I have less than 28 days to do this...

thanks for any help
TaxMan101

dojoman

Wrong forum. you need the IVA forum.

DorisTrousers

You could do a search of the Insolvency Register, or if not then ring the Courts service direct.

By the way, is the money owed to you large enough to reverse the outcome of the vote, assuming a no? If not, then you have to question whether it is worth it if the answer is still over 75% in favour.

Johno100

DorisTrousers wrote: »

By the way, is the money owed to you large enough to reverse the outcome of the vote, assuming a no? If not, then you have to question whether it is worth it if the answer is still over 75% in favour.

That's the million dollar question. If the IVA would have still gone through with the OP's debt included in the no 'pile' then he is basically throwing good money after bad.

TaxMan101

Hello All - Indeed the money is material to reverse the outcome of the IVA Acceptance. Its really not 100% clear how to appeal the decision through the court. I cant let this guy win after what he did me and my family.

DorisTrousers

"57.22 Challenge of the meetings' decision

An application may be made to the court to challenge the decision of the meeting of creditors on one or both of the following grounds [Note 91]:

that the IVA unfairly prejudices the interests of a creditor, or
that there has been a material irregularity at or in relation to the creditors' meeting.
The application may be made by the debtor, the nominee, a person who was entitled to vote at the creditors' meeting in accordance with the rules and where the debtor is an undischarged bankrupt, the trustee or the official receiver [Note 92]. The application must be made within 28 days of the result of the creditors' meeting being reported to the court. In the case of a person who was not given notice of the creditors' meeting the application must be made within 28 days beginning with the day on which he/she become aware that the meeting had taken place [Note 93].

False or misleading information provided by a debtor in his/her statement of affairs or proposal would constitute a "material irregularity at or in relation to the creditors' meeting" [Note 94].The official receiver is only expected to apply in exceptional circumstances e.g. on the basis of "public interest", but must show either unfair prejudice or material irregularity.

Where the court is satisfied that one of the grounds is made out, it can revoke or suspend the approval and/or direct the summoning of further meetings, as well as giving supplemental directions [Note 95] [Note 96]. Rule 5.30 sets out the notice requirements which apply when the court makes an order under section 262 revoking or suspending the creditors' approval of the IVA.

Applications under section 262 are often made jointly with an application to appeal against a decision of the chairman under rule 5.22(3).



57.23EA False representations

The debtor commits an offence if, for the purpose of obtaining the approval of his/her creditors to a proposal for an IVA he/she make any false representations, or fraudulently does or omits to do anything [Note 97]. "

From the Insolvency Service. Search the Insolvency Register by the name of the debtor to find out the name of the court dealing with it, it will be listed on there in the details.

Easiest thing then is to go to the court and get the forms, and possibly help filling them out, to file your appeal.

You may want to consider whether the debtor has any assets that he needs to protect, such as property or a fancy motor, and if not then you need to further consider whether he would simply go bankrupt if the IVA is overturned. If that were the case, and he had no assets, then you are likely to get a much lesser return in Bankruptcy than you would in an IVA.

Foxy-Stoat_3

TaxMan101 wrote: »

Hello All - Indeed the money is material to reverse the outcome of the IVA Acceptance. Its really not 100% clear how to appeal the decision through the court. I cant let this guy win after what he did me and my family.

And if you go to court and overturn the IVA what then, he becomes bankrupt and you still get the square root of nothing rather that 15-25% of the original debt.

Win/Lose.