Individual Voluntary Agreement

mimi1234

Hi all,

Can someone shed some light on this.

I had a debtor who owes me close to £30K. I put in a charging order for his property, I was given the interim charging order and the judge makes his decision in a few days time as to whether he is going to make it final or not.

I've received an IVA from a debt agency (I think) with a whole list of people that are owed money.

I've done a quick bit of googling. It appears he has to make a certain amount of payments for 6 years and then everything is classed as settled. !!!!!!!

Am I going to have to accept this? That's a lot of my money which is going to end up being settled.

It was a one off investment I made (biggest mistake of my life). When I contacted the CAB, they told me to jog on and that they only help debtors. I don't have money lying around to keep going to solicitors. Please can someone advice. Are there any other agencies that might be able to advise me?

Comms69

You say you made an investment - I'm surprised you're classed as a creditor at all to be honest.


But yes that is how an IVA works.

mimi1234

It's an unsecured creditor or that's what it says on the paperwork I got.

It wasn't an investment per se, the money he took off me was more a loan as he used it to pay off other debt. More fool me for not having realised this at the point.

CKhalvashi

Comms69 wrote: »

You say you made an investment - I'm surprised you're classed as a creditor at all to be honest.


But yes that is how an IVA works.

It’s likely not as simple as that.

An investment would likely have involved either a trading business partnerships or more likely a limited company, where the money went could ultimately decide how OP is treated in this case (especially regarding whether there was a share sale or new issue involved)

More likely, OP has loaned this person money in exchange for a return (I offered 1% a month on a debt that was costing me around 2.5% before to place it elsewhere at a cheaper cost many years ago, the person was a family member who had spare cash at the time), meaning it would be a loan to this individual with an expected rate of return.

In the second case, OP would be an unsecured creditor, in the first likely an investor in the eyes of the law. OP may have (incorrectly) classified this as an investment, which may be perfectly understandable.

missimaxo

The creditors vote on whether to accept the iva or not. If push on with the charging order as that would make you secured if there's equity in the property. If you disagree with the iva, vote against it but the overall majority would win whichever way it is. If the iva fails then they may be looking at bankruptcy. The charging order would give you more chance of seeing your money but you may have to wait till the property is sold

mimi1234

CKhalvashi wrote: »

It’s likely not as simple as that.

An investment would likely have involved either a trading business partnerships or more likely a limited company, where the money went could ultimately decide how OP is treated in this case (especially regarding whether there was a share sale or new issue involved)

More likely, OP has loaned this person money in exchange for a return (I offered 1% a month on a debt that was costing me around 2.5% before to place it elsewhere at a cheaper cost many years ago, the person was a family member who had spare cash at the time), meaning it would be a loan to this individual with an expected rate of return.

In the second case, OP would be an unsecured creditor, in the first likely an investor in the eyes of the law. OP may have (incorrectly) classified this as an investment, which may be perfectly understandable.

You have put it very eloquently. It was more of a loan and he would give me a certain amount back but he failed on the returns after 3 months. I tried to pull out but he wouldn't let me. It was part of the agreement that if he failed to give me the returns then the agreement would be void.

The interim charging order is getting put past the judge on Friday. I highly doubt I am going to get it made final, but I am still hoping he/she will.

The debtor supposedly owes someone in Zambia £100K as well or so it said in the income and expenditure sheet! I will definitely be voting no. He has made me jump through so many hoops!

bris

You gave him 30k for a return on your money, this is an investment that has went bad. It's unlikely to be made final as that would put you at an advantage to other creditors with the IVA going through.


Not sure why you are not classed as creditor, perhaps because you don't want to be but it's not helping your situation. The judge may very well see you as an investor in a very bad deal.

mimi1234

I have no idea either. It just says I am an unsecured creditor.

The IVA contains a lot of wrong information. Would that hold it up or have I just made a huge !!!! up of it all and lost loads of money in the process?

I know I keep saying investment but it was more of a loan with a return each month and he would give me the loan back at the end of the 2 years.

mimi1234

Bit of an update, as I am more than 15% of the total debt, I've been informed I can ask for a physical meeting much to the chagrin of the receptionist who kept telling me no until I pointed out the above.

Spoke to the IP who said a lot of the debts (didn't say how much) were based on cash in hand deals and there was no proof of them.

Is that classed as being impartial, as in proposing an IVA with debts which have not (and possibly cannot be substantiated) and then trying to force an online meeting within a few days?

I've now got a fortnight more to get further information down before the meeting.