How long does it take to set up an IVA?

baglady

I am concerned that the IP I am using seems to be working too slowly.


I was made bankrupt in September 2015 by First Credit Finance for an amount of approx. £6K. I had other debts which were added to the bankruptcy. My only asset is my property of which there is equity but I don't know how much. I had a meeting with the OR and although she could not give advise she said I needed to do something or I would lose my home.


I had a meeting with a local IP and he is putting together a IVA proposal for me. In November I completed all the required forms and supplied the documents required. My family are helping me so together we have been paying him monthly. So far we have paid about £2,500.


In January 2016 I got a letter from the Insolvency Service giving me the details of the trustees who had been appointed. I contacted the IP and sent copies of the letter.


I contacted the IP a few weeks ago to find out when I would be getting the draft IVA proposal. This week I was told that it was being finalised.


Today I got an introduction call from the company who are I think are the trustees. I explained that I have instructed an IP but it seems as though they have not been notified about this.


I am worried that the delay means that I am incurring more costs due to the appointment of trustees.


I thought that if the IP contacted the Insolvency service that things would be put on hold until the IVA proposal was submitted.


I thought everything was in hand but now I am quite worried.


How long does it usually take to get an IVA proposal to be done and set up?


Any advice would be gratefully appreciated

dancingfairy

You shouldn't have to pay iva fees up front. The fees should come out of the payments to your creditors. It all sounds dodgy to me.
Also why are you going for an iva? Has someone advised you can do this to overturn the bankruptcy? I thought you had to apply for an annulment to cancel a bankruptcy? Have you looked at buying the beneficial interest in your property? Has it been offered?
Df

DorisTrousers

I must have arranged a couple of dozen IVA's to annul a BR, so it is certainly possible.

The process isn't the same as your common or garden IVA though, for reasons that could be anything, and are too long to detail here. The real key here is time. The longer an outside I.P. is acting as Trustee, the higher the cost.

baglady

Thanks for your replies. I am going to call the IP who is meant to be working on my behalf for a meeting to find out why it seems to be taking so long to get the IVA proposal together.


I thought that having my own IP would prevent the Insolvency Service appointing trustees.

DorisTrousers

It may well be that your own I.P. would seek the appointment as trustee in the event that there is a failure of the IVA.

Johnsmith2016

If you went bankcrupt why do you need to do an iva?
Did they let you go bankcrupt for only 6k?

DorisTrousers

"I was made bankrupt in September 2015 by First Credit Finance for an amount of approx. £6K. I had other debts which were added to the bankruptcy. My only asset is my property of which there is equity but I don't know how much. I had a meeting with the OR and although she could not give advise she said I needed to do something or I would lose my home."

If there is no way of buying the Trustee out, and bear in mind they normally "sit" on a property for 2 and a bit years, racking up very large fees which are preferential, then an IVA to annul the BR may be the best bet.

baglady

This week at my request I have a meeting with the IP. The trustees contacted me again recently saying they had still not been notified by my IP that he was dealing with my case. IP says he asked OR not to instruct trustees. I am not confident that the IP has been dealing with my case correctly. IP says a number of things have been happening which he'll explain at the meeting.

DorisTrousers

Please let us know how it went, and good luck with everything.

baglady

Here's an update. I had meeting with IP a few weeks ago. He had been dealing with one of the creditors who had instructed the trustees, he was querying why they had instructed them. The amount owed to them is around £2,000. He had previously been told that a trustee would not be appointed for this small amount.


I've now received the draft IVA proposal, I've looked through it and noted a few errors on the SOA which I have rectified. I'll be paying into the IVA for about 2 years. I am self employed so had to do a cash flow forecast, now the IP wants supporting evidence with it. I don't know exactly what is needed because it's a forecast!! I will check with the IP.


A nice lottery win would really come in handy so I could pay off everything including all the fees. I know wishful thinking!!

baglady

UPDATE,,,

Sorry if this seems like I am rambling but a lot of things seem to have happened.

Made bankrupt in September 2015. I have been trying to get an IVA so that I don't lose my house which is my only asset and there is equity in ti.

Would you believe that after all this time mu IVA proposal has not been finalised!!

I received the draft proposal, highlighted the errors for my IP and was ready to sign it so it could be send to the creditors.

Things seem to have got more complicated and the fees I seem to be liable for are increasing.

A few weeks later I was advised my IP that the trustees had added their fees which amounted to over £7,000. Trustees were appointed in January even though my IP was told by OR that this would not happen. My IP suggested that I release equity from my property to cover these extra fees. I am bankrupt so how will I be able to borrow money to do that? My parents got the money to pay these extra fees.

I want to query the appointment of the trustees. My IP believes the trustees were appointed by one of my creditors, this creditor is owed just over £2,000 which they would be getting from the IVA but they seem intent on continuing with their action. Previously my IP had tried contacting the company and he was fobbed off. My IP suggested that my parents contact the company but they seem to be fobbing them off by saying that they didn't make me bankrupt which is the case. They didn't make me bankrupt but they are one of my creditors.

The company who initially made me bankrupt in the first place were paid in full by my parents a few weeks after the bankruptcy. My parents did not know about the preferential payment thing. Because there were other creditors I owed it meant that the bankruptcy still stood. So in effect that company is not in the potential IVA pot.

Excluding any fees In terms of what I owe my creditors it is less than £10,000.

I tried to get some advice from Stepchange to ask how/why trustees get appointed but I was told that because I am still in the bankruptcy that for legal reasons they cannot give me any advice.

Currently £700 per month is being paid to the IP ready to have the funds available to be distributed to the creditors once the IVA is approved. Initially I was told that I would pay into the IVA for 14 months but now it seems that it could be 44 months. I have queried this but I don't believe I have a satisfactory answer.

In the next week I have a meeting with my IP but I don't feel that i am getting the right advice.

Any suggestions on what I should do next?