HelloI am entering into an IVA and I am still in a legal process with 2 of my creditors.My main creditor, who will no doubt have the casting vote, I am looking to dispute the amount and may end up suing if I need to go down that route.How does the effect the IVA with voting rights and time scales?Thank you
State/Country relating to question: United Kingdom
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HiThank you for your question.I can assist you with this, however I will need to refer to the Insolvency Rules which I will not have access to until tomorrow afternoon. If this is ok and you would like me to help, please can you revert to me explaining on what grounds you dispute the amount of the debt?Kind regardsAJ
I believe the properties in question that produced a short fall and where my PG comes into play were not sold correctly or with due care
HiThank you so is the debt a PG for the liabilities of a company or mortgages?Kind regardsAJ
property 1. pg was a liability for the company
property 2. was in my personnel name
Hi,Is it the same creditor for both guarantees?Has the creditor sold the property if so what is the shortfall you are being asked to personally cover?Kind regardsAJ
yes it is the same creditor. Both properties have been sold now. Both properties left a very large shortfall
Hi,Have the creditors made a formal demand for the money?Did the creditors in both cases take possession of the property and sell them at a shortfall?I will be here all day now in order to resolve this. I need to build up a picture so we can discuss on what grounds you will dispute the debt.Kind regardsAJ
Yes they made a formal demand before the properties were sold.
Both properties were put into receivership in Nov 2010, although worked stopped in Nov 2009. In between this time I was told I was not allowed to sell one of them unless it paid off both debts!
Property 2 was sold very quickly and we believe:
I believe the bank sold both properties without due care and relied on the shortfall coming from our PG’s and other assets, which ironically we sold to keep both projects running.
I hope this helps
Hi,Thank you when you gave the Personal Guarantee, especially in relation to your home, were you told by the bank to obtain independent legal advice?Kind regardsAJ
Yes and we did as we had to sign it to release funds to complete. Although I thought what I signed covered both properties.
i.e if PG was for 500 and property 1 sold for 250 and property 2 sold for 250 then it didn’t matter that the debt was 600 because the PG was only for 500
Hi,If you are going to begin challenging the banks and claiming that the properties were undersold, do you have any expert evidence to prove this i.e a valuers report to show that the properties were grossly undervalued?Kind regardsAJ
Yes I have an experts email at the time of the properties being sold showing this.
Also I believe, especially for property 2, that if a valuation was done today asking a valuer what the valuation was then, then comparable evidence would certainly show higher values, as much as three times.
Property 2 was sold within weeks and to a neighbour.
I believe the bank needed to show money on their books as quickly as possible and therefore fire sold the properties.
Obviously they went through a receiver who then went through an agent but I still believe no care of duty was taken.
By the by the week property 1 had completed he got in three offers for more than one and half of what he paid. Actually he got offered what the value said it was worth!
i.e. he bought for 420 and he got offered over 600. My PG was only for 550 and the valuation email was between 580-620.
Hi,Thank you.An IVA has to be done by agreement. Before you actually get to that stage have you actually stated to the bank that you have evidence that makes it clear that the receiver did not his fulfil his duty properly.They are entitled to make a quick and undervalued sale but it cannot be that low i.e less than half the actual value.At what stage is the dispute with the bank?Kind regardsAJ
I have not said anything to the bank at the moment as really I want the iva to go through. I was then going to do something if I had enough energy. It was only when I heard the bank might not support the iva I thought I'd better do something now to prevent them over turning the iva
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