Questions about Individual Voluntary Arrangements and Insolvency.

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ByFlorida
#139942 My IVA is a with a large company. It appears that some of the insolvency practitioners have gone off and set up their own company.

Can they do this without any prior notification to those involved.

If so, what happens to all the monies paid into the iva with the previous large organisation. Advice please. [/b]
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ByShameless
#139953 What usually happens is the IVA stays with the same company and your IP will hand over their jobs to a new IP in the firm via court.

Its not that rare anymore with all the factory IP's doing the rounds.
ByFlorida
#139960 Shameless

Thank you this has not happened. A letter received yesterday was the first notification of any change. In fact its the only piece of corrspondence received from this company since the meeting .

The company involved is Baker Tilly.

From a letter received it appears that the IP's have taken the cases with them to the new company they have set up. What Im worried about is my iva included a large lump sum from house sale. Would this remain with Baker Tilly or move to the new company.

What sort of guarantees do I have with the money? I have not been happy with the way Baker Tilly have handled the iva anyway as they now say I have to pay more money into the iva. My understanding was a monthly payment till house sold and then then lump sum from house sale. I now have substantial increase in mortgage payments and being required to find another 3500 . Any suggestions?
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ByShameless
#139968 why are they asking you to pay more???

Dont worry about the money regardless all IPs have to take out an insurance policy called a bordereau in case an IP runs off with your money so even if it happens than your always covered.

Its strange to be taking cases with him. He must have effectively bought them off Baker Tilly.
ByFlorida
#139975 Well Baker Tilly's stance is that when the iva was agreed pence in £ it included the 12 months payments. Well the proposal was payments of 360 month until house was sold and this was my understanding of the arrangement.

On sale of the house the lump sum would be released by my solicitor as has been the case. As a result I thought it was all over and cancelled the standing order. End of story.

Now they say that is not the case and I have to pay in the additional funds to cover the remaining payments to reach the pence in pound and close the iva. Not to mention now having a further 500 month to pay on top of my previous mortgage costs.

I now have this worry and now it seems everything has been transferred to this new company without anyone's knowledge. The arrangement was for 12 months despite the fact I only wanted it for 6 months. Advice pls thank you
Bybigdebts
#139998 Snap i received on of them letters yesterday.
why would they branch out on there own and will anything change on my IVA,
i am starting to think shameless was right when my iva was first agreed i thought this company was great.but shameless slatted me thinking that i was a mole working for them but infact i was just happy that my iva was agrreed and a weight had been lifted.

will they be able to say that you need to pay more money at my review if circs have not changed? i have to release equity in my house on year 4 but what if i can not afford to release any equity?
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Bysubmariner
#140026
Florida wrote:Now they say that is not the case and I have to pay in the additional funds to cover the remaining payments to reach the pence in pound and close the iva. Not to mention now having a further 500 month to pay on top of my previous mortgage costs.


In presumbly similar circumstances to you last year, I had to raise a lump sum during my IVA (at the end of the first year as it happened). At that point it was realised by my IP that the increased mortgage payments would effectively rule out further monthly payments of the IVA, so a variation meeting was called to formally agree that the lump sum would be taken as a F&F and that would be it. (This was before any commitment to the mortgage package was agreed.) The variation meeting thankfully said "yes"!

By the very nature (let alone legal terms) of an IVA, whereby you are handing over the majority of your spare money, you cannot be expected to find another £500 out of thin air to pay the increased mortgage (otherwise you might reasonably have been expected to pay that "spare" money into the IVA anyway!).

I guess much depends on whether you have a minimum % clause in the IVA, but even then you can't expect to raise an increased mortgage for nothing and surely your IP had to agree to your mortgage terms (ie would have known that your particular mortgage package involved increased payments.... my mortgage brokers took guidance from my IP before proposing the new mortgage). Sounds like you have been let down in respect of communication with your IVA Co. at the very least, doesn't it?

I'll ask the experts here whether Florida should be going to their IP and asking for a variation meeting to reduce IVA payments significantly and/or take the lump sum as an F&F?
Bykizzy
#140084 Hi, I had one of those letters yesterday - it seemed quite straightforward to me - the IP who set up the IVA will remain the same and all the T & C's of the IVA will remain the same. I suppose that the IVA business is becoming so big that Baker Tilly felt that they needed a "sister company" to deal with the insolvency business.

In terms of re-mortgage - I have to remortgage in the 5th year but I have to ensure that the minimum div paid back is 40.3p - if I don't achieve that amount by remortgaging then I will have to continue making payments for an additional 12 months (although they did state that any increase in the mortgage repayments would be knocked off the monthly amount that I would pay over the 12 months to keep it affordable).
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Bysubmariner
#140128
kizzy wrote:(although they did state that any increase in the mortgage repayments would be knocked off the monthly amount that I would pay over the 12 months to keep it affordable).


Yep, that's the get-out, surely?
ByPrincess2
#141141 Hi i have had a letter from Bakertilly - Debt lifeboat also, i called just to confirm the details and i was told that Debt lifeboat are only a branch of Bakertilly and not the company seperating as such. I was easily able to get in cotnact with the lady i had been speaking to previously and was assured my IVA would run as before.

They would do my annual review as normal and if i had had an increase in wages then i would be expected to increase my IVA payments, however i will also asked to fill out a income and expenditure so that they can check increase in my living costs

I am also due to release equity in the 4th year of my arrangment also, by a creditors modification. I asked about this and they told me that if i could not release the money then i might have to do a variation meeting or continue to make payments to meet the min dividend to creditors. Hoping to get the re-mortgage so this does not happen though.
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ByOn_Edge
#141238
Princess2 wrote:Hi i have had a letter from Bakertilly - Debt lifeboat also, i called just to confirm the details and i was told that Debt lifeboat are only a branch of Bakertilly and not the company seperating as such. I was easily able to get in cotnact with the lady i had been speaking to previously and was assured my IVA would run as before.

They would do my annual review as normal and if i had had an increase in wages then i would be expected to increase my IVA payments, however i will also asked to fill out a income and expenditure so that they can check increase in my living costs

I am also due to release equity in the 4th year of my arrangment also, by a creditors modification. I asked about this and they told me that if i could not release the money then i might have to do a variation meeting or continue to make payments to meet the min dividend to creditors. Hoping to get the re-mortgage so this does not happen though.


Hi,

I am thinking of going with Baker Tilly/Debt Lifeboat (Birmingham branch).

I would appreciate it if you could answer the following :?:'s of your experience with the company.

Do they charge upfront fees?
How long have you been with them?
What has the service been like?
How long did it take for them to put a proposal together?
Has your IP been helpful?
Has contact with them been over the phone or have you met with IP in person?
Do you think their charges have been fair?


Thank you in advance.
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