General IVA Query

fodden101

Hi,

I'm in an IVA and am currently paying a dividend of 52p but I have just had a shock historic bill which is going to reduce my dividend payment down to roughly 35p. Am I right in thinking this will mean my IVA will have to be reassessed and could potentially be rejected now? is 35p still a good return or should I be worried?

thanks in advance

sourcrates

Hi,
I am a little confused as to your question.

Do you mean you are unable to meet your existing IVA payments due to this "historic bill" appearing ?

fodden101

no i'm ok with the payments as the debt was before my IVA started so it can be added to my IVA, my query is to whether the big reduction in dividend will mean the creditors reject it if they have to have another meeting

sourcrates

fodden101 wrote: »

no i'm ok with the payments as the debt was before my IVA started so it can be added to my IVA,

I don't think this is correct.

Once your IVA has started, you cant add any more debts to it, unless they have changed the rules in the last few years.

Have you approached your IP about this ?

EDit, sorry just seen it was run up before the IVA started so you should be ok.

sourcrates

Its possible your creditors may not approve your new IVA, but as long as the dividend represents the best value for the creditors, you should be ok.

DorisTrousers

I'm 99% sure that this new creditor is bound by the terms of your existing IVA, so you have little to fear. I am also sure that someone will correct me if I am wrong.

It always seems a bit daft to me that for a DRO an Intermediary has to obtain an Experian report but an I.P. doesn't for an IVA. It would certainly help to solve this type of problem, which is actually more common than you may think. It would also stop unscrupulous debtors (there are some, not all are as honest as the majority of people on here) from "accidentally" leaving debts out in order to have a line or lines of credit.

sourcrates

Forgotten debts can be added to your IVA, but how easy it will be depends on how big the debt is.

You will already be paying as much as you can towards your IVA, so any debt you add on will reduce the amount each of your lenders receives. As long as the amount each lender receives is reduced by less than 15%, the forgotten debt can be added on without question.

However, if adding the forgotten debt would reduce your other lenders' payments by more than 15%, the IVA will have to be formally rearranged. Your lenders will receive another IVA proposal, which must be accepted by lenders representing at least 75% of your total unsecured debt.

If lenders responsible for more than 25% of your total unsecured debt reject the new IVA, you will have to look at alternative options. In many cases the only suitable alternative will be bankruptcy.