Life in a IVA ?

[squidward]

Been looking into the pro's and con's of an IVA, The companies that I have spoken to are PayPlan Grant Thornton and RE10 all with similar figures. currently owe just over 70k spead over nine creditors.

 

What I would like to Know is how the yearly reviews are conducted - is this via a telephone conversation of us telling the IP or their assistant details of earnings etc, or does it go into more depth - for example going through bank statements accounts etc etc.

 

The reason for this is I am employed as a company director and get paid in dividend payments ( bankruptcy is out of the question ) so when I get paid - it looks quite good until you realise how long the money has to last -then not so good I generally get paid four or five times a year!

 

My concern is if the IP increases my payment into the IVA and not allowing / leaving us enough money to live on we would the potentially failing the IVA.

 

Any advice on this

 

Thanks

[theshuffler]

My OH has one with Payplan , and she says they just send out a form for you to fill in , nothing more than that

[sequenci]

The IP is obliged to leave you with enough money to live on, they will use 'common financial statement' figures to ensure this is the case. Out of the names mentioned Payplan or Grant Thorton are two firms I have personally worked with. Both are excellent.

[nottslad]

Grant Thornton are a really reputable company, I work in the insolvency field and they have been really good with IVAs.

 

The common process tends to be what theshuffler mentioned, a form reviewing your i&e is sent, it is very rare that a change would be significant enough to warrant a variation to the IVA on the basis that this would require another Meeting of Creditors, which adds further costs - the IP is only in it for money at the end of the day!

[theshuffler]

I have this posted on another part of the site , but so far have had no response ,

 

Just one on behalf of the OH who has a payplan agreement which has been in operation for close on three years she took a year out of it with their permission when everything else went pearshaped., She is now requesting a further 2 month break to enable her to get over christmas , something which Payplan are not going to agree with . I have told her to tell PP that she is not requesting a break merely taking one . Now judging the amount of non enforceable agreements floating around im wondering should she cca all her creditors just to see who can come up with the goods , i think the bulk of the agreements will be pre 2006 , Barclaycard ,

Halifax

loan and credit card ,

cap one

and Cahoot, that i know of. From memory the Cahoot agreement was in order , but i think the likelyhood of the rest being good is slim . Is it worth the punt ? What position would she be in with PP ? They insist that failure to keep up repayments may result in bankruptcy proceedings, Bankruptcy proceedings i imagine would require agreements . Any one have any ideas of what could or might happen if even half of the creditors cant produce the goods? Could she reduce what she is paying PP on the grounds that half dont have enforceable agreements? A lot of question marks here i know , but any thoughts or experiences would be a help.

[sequenci]

I have told her to tell PP that she is not requesting a break merely taking one .

 

Hi there,

 

Do remember that an IVA is a legally binding agreement, failure to adhere to the terms could cause it to fail. Simply taking a break without Payplans - and indeed the creditors agreement could cause the IVA to fail, your friend could be held liable for further costs. As the insolvency practitioner Payplan are legally obliged to consider all of the alternatives if the IVA fails, that could include Bankruptcy. I don't think the question of enforceability would even come into it at this late stage as there may be sufficient practitioners fees to justify the creditor's petition being served.

[theshuffler]

Not sure i quite understand that, surely in order to bankrupt someone a credit agreement would need to be produced ? Maybe im missing something here ?

[sequenci]

Not sure i quite understand that, surely in order to bankrupt someone a credit agreement would need to be produced ? Maybe im missing something here ?

 

In order to be made bankrupt the creditor must be owed at least £750. It might be possible to stop a bankruptcy *if* a loan or credit card firm brings the action and it can be proven that the agreement is unenforceable, this situation would be a little different as the bankruptcy would be part of a failed IVA, it would be very likely that Payplan themselves would be owed more than £750 in fees so they could bring the action on those grounds. In short, it's risky ground.

[theshuffler]

Right im with you now , Thanks for that, as i mentioned she was just taking a two month unnaproved break , they havent got snotty about it as yet , and was wondering about the reprecussions if they did.

[sequenci]

Right im with you now , Thanks for that, as i mentioned she was just taking a two month unnaproved break , they havent got snotty about it as yet , and was wondering about the reprecussions if they did.

 

There are three options

 

1) It will continue with the expectation that they payments will be brought up-to-date at some point in the future, or the agreement gets modified

2) the IVA fails and the IP does nothing

3) the IVA fails and the IP takes the next best course of action

 

IS this person a home owner?