Guarantor insolvent.

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    Guarantor insolvent.

    I had a tenant that left last year owing about £750. She had a guarantor and I have just found out that the G made a voluntary arrangement (whatever that is) last September. That was shortly after the tenant left.

    I have not yet contacted the guarantor but I intend to.

    Would it be best to wait until his arrangement finishes before I do or will he be able to blow me out by saying all these pre arrangement debts must be wiped out.

    The tenant was a single mother on benefits, although we know where she is it seems a bit pointless going after her.
    I offer no guarantee that anything I say is correct. wysiwyg

    #2
    Individual voluntary arrangement (IVA): see http://uk.ask.com/web?q=%22Individua...=196&o=0&l=dir

    HMG's Insolvency Service official website at http://www.insolvency.gov.uk/bankrup...bankruptcy.htm explains more. Here's an extract:

    An individual voluntary arrangement begins with a formal proposal to your creditors to pay part or all of your debts. You need to apply to the court and you must be helped by an insolvency practitioner. Any agreement reached with your creditors will be binding on them.

    How does it work?

    First, find an authorised insolvency practitioner prepared to act for you. (Your local court can give the names of local practitioners.) A list is also available for you to look at in your local Official Receiver’s office.

    Then you apply to the court for an "interim order". This prevents your creditors from presenting, or proceeding with, a bankruptcy petition against you while the interim order is in force. It also prevents them from taking other action against you during the same period without the permission of the court.

    The insolvency practitioner tells the court the details of your proposal and whether in his or her opinion a meeting of creditors should be called to consider it.

    If a meeting is to be held, the date of the meeting and details of the proposals are sent to your creditors. Only those creditors who had notice of the meeting are bound by the arrangement, so it is important that you have accurate records of all your creditors’ names and addresses. Otherwise, the arrangement might fail because the practitioner cannot contact all the creditors and, therefore, bind them to it.

    At the meeting, the creditors vote on whether to accept your proposals. If enough creditors (over 75% in value of the creditors present in person or by proxy, and voting on the resolution) vote in favour, the proposals are accepted. They are then binding on all creditors who had notice of, and were entitled to vote at, the meeting.

    The insolvency practitioner supervises the arrangement and pays the creditors in accordance with the accepted proposal.
    JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
    1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
    2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
    3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
    4. *- Contact info: click on my name (blue-highlight link).

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      #3
      Thank you Jeffrey.

      So since I had no knowledge of this arrangement then I am not bound by whatever he agreed with his other creditors.

      The IVA was made very nearly a year ago, does it have a time limit?

      The only other question really is can I do it online?
      I offer no guarantee that anything I say is correct. wysiwyg

      Comment


        #4
        IVAs are way outside my areas of expertise, so I can't really answer. Try the HMG website cited or some of the others.
        JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
        1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
        2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
        3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
        4. *- Contact info: click on my name (blue-highlight link).

        Comment


          #5
          An IVA lasts for FIVE years so I don't imagine you'd want to wait. If your debt was added in you would most likely get 30-40% back.

          The G was responsible for advising his IP of all of his debts as one can't be selective. You could ask G for name and address of his IP. Although technically, is it his debt?

          Comment


            #6
            At the time of his IVA this would not have been a debt, it is only becoming one now because I am p'd off with being knocked.

            I have his name and address, he is working. I intend to recover all of the debt and court fees.

            Besides, a creditor has to agree to be shortchanged does he not?
            I offer no guarantee that anything I say is correct. wysiwyg

            Comment

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