paid to date IVA rejected

kay2016

I'm looking for some information - myself and my husband are both in IVA's (we orignally thought this was one joint one but is actually one each) after a change in circumstances we are unable to continue making payments so after speaking to our company and supervisor a meeting was set up to see if the creditors would accept funds paid to date in full and final setttlement.

This meeting was today - my request was accepted with 1 modification that all paperwork is completed within 7 days but my husband's was rejected by his main creditor, I was advised he may be eligible for a debt relief order.

My debts were over 26k when this started nearly 3 years ago and my husband's was just under 5k.

Now we are home and have checked the paperwork his main creditor was a joint bank account , that shows on his paperwork and mine with the same balance of around £3.5k

My question is - how can this company accept on my IVA but reject on my husband's ?
Is there an appeal process for this kind of thing?

memberme

Hi,

probably due to a majority vote difference.

It is probable that the creditor in question rejected both requests but you had more creditors on your larger debt that accepted and therefore by majority vote your was accepted. On his this was his major creditor and swung the voter accordingly.

i have completed an IVA but not personally experienced this issue but that would be my guess

Tinks74

With IVA's the clue is in the name, Individual Voluntary Arrangement, most couples have what are called interlocking IVA's as it is generally based upon the household finances, but each arrangement still remains Individual to each person.


I would suggest it is as memberme has said above.
To accept a variation each person requires 75% by value of those who can and do vote to approve a resolution in order for it to carry, 74% and it will fail. You could have a total debt of £100,000, but if at the meeting, after all creditors have received fair notice, the Supervisor receives just one vote to accept the resolutions for a debt of £50, then that resolution is passed as 100% of the creditors who voted approved the resolution.
Sometimes the Supervisor can try to negotiate with the creditor but it does not always work.


It is not uncommon for this kind of situation to arise when variations are put to creditors on interlocking arrangements.

fatbelly

kay2016 wrote: »

...my husband's was rejected by his main creditor, I was advised he may be eligible for a debt relief order.

Once it is terminated, £90 fee, online application via an approved intermediary, job done.

He should probably have done this in the first place.

kay2016

When his IVA fails does that mean we will both become liable for the debt as it is a joint debt ? It was included in mine as well so I don't know where we stand

fatbelly

kay2016 wrote: »

When his IVA fails does that mean we will both become liable for the debt as it is a joint debt ? It was included in mine as well so I don't know where we stand

No your liability has been dealt with by your IVA

His will have to be dealt with by a DRO