IVA Practitioner. Is this right what they have told me

[Isiris]

My wifes sister in law has an IVA which I didnt know. She cam to me after a do over xmas where It soon got round I had reclaimed my bank charges.

She came over yesterday with her IVA (Nuttalls) and I told her I am not in any way au fait with how these work. I spoke to this woman at Nutalls and said if I go the money back from her creditors (4000 Nat West CC 3700 Nat West CA 5400 MBNA CC + others) would the banks have to pay the money into the supervisor then distribute the funds pro rata.

She said no, they could just offset this against the origanal amounts and then they would re adjust the payments pro rata and accordingly.

Now I have read somewhere about this being incorrect but thought I would start this thread for discussion. I am basically thinking Nutalls dont want the hastle that all this would cause them. I actually asked if they had asked for the original credit agreements but they seemed surprise I knew anything about this.

Could someone advise what they think OR EVEN BETTER a link to law where this is covered.

Many Thanks
ISIRIS'S WIFES SISTER IN LAW

[bottomburp]

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[Isiris]

Thanks for that

I just wanted to see the actual rule. Nutalls just seemed to be oh sod that, sounds too much like hard work.

Anyone else any views ?

[gizmo111]

Botom has linked you to the most popular thread on IVA's. How much is her IVA for in total - someone else was hoping that the amount they reclaimed would be sufficient for them to make a lump sum offer to pay off IVA. AFAIK a creditor cannot take money it has to be distributed amongst them all.

[bottomburp]

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[Isiris]

WOW

Many thanks for that chap/ets

Her IVA is for 86797.46

Without saying who there are the following

Credit Cards 15744.07
Current Acc 6539.74
Store Card 6779.39

These are the ones I would have been looking for her. I will have a look at the link you gave then probably write a letter to the Practitioner and asking them to confirm what they said in writing.

Again, many thanks and the scales have been tipped

[Isiris]

Well them links were good.

Had a look round and telephoned The Insolvency Service and asked them what they thought, now because this IVA does not cover After Acquired Property (This when you thnk about it was probably to protect her), the creditor, in his opinion, can offset the money against his debt.

The IVA form I have infront of me, does not make any stipulation for example, if she received 50k from inheritence.

BOO HOO

[Isiris]

Hang on, Hang on

It says, Third Party Propert

Should I receive and Windfall, Asset or Inheritence during the course of the arrangement, the supervisor is to be informed immediately and such sums paid into the arrangement up to the value of outstanding costs and creditors claims, in full, plus statutory interest.

Any views on that please

[bottomburp]

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[gizmo111]

Originally Posted by Isiris

WOW

Many thanks for that chap/ets

Her IVA is for 86797.46

Without saying who there are the following

Credit Cards 15744.07
Current Acc 6539.74
Store Card 6779.39

These are the ones I would have been looking for her. I will have a look at the link you gave then probably write a letter to the Practitioner and asking them to confirm what they said in writing.

Again, many thanks and the scales have been tipped

Are the amounts above the IVA totals? Or the totalof charges to be recliamed?
has she paid ortgage ERC's.
In the link above the IP agreed that it was a windfall and 50% would be distributed over credsitors.

[Isiris]

Dont worry gizmo

I havent been sat here waiting for a reply.

They are the totals for each grouping, IE Credit Cards, Store Cards and Overdraft.

I would evisage that 20% of the total will be charges.

Just the IVA practitioner does not see the banks paying the money and they said they would just offset

[gizmo111]

But they don't add up to 87K?
I don't thinkthey can offset on their own debt once a formal arrnagement has been entered into - each creditor has to be trreated fairly.
What was her % that the creditors agreed to on her proposal and how long has she been in IVA?
I am thinking if she could reclaim charges and it was a reasonable amount she may have a case to pay off IVA with lump sum.

[Isiris]

VERY SORRY

There are a few personal loans that make it up to 87k. Sorry bout that.

Right, got you

Its 24p in the pound from what i have seen. Been in the IVA for about 6 months.

Giz, thanks for this (and BB). I have no idea about this so thought I should ask

[gizmo111]

Unfortuneatelyu there will not be enough to make a reasonable offer to finish IVA at this time.
I would go back to IP and see if you can 50% agreement on repayment of charges. Your SIL would still get back a fair amount if it coul dbe agreed. Otherwise not much point.
Any charges on the loans to be taken into account?

Oh and no need to apologise

[Isiris]

Giz

Im going to ask you a massive favour and understand if you cant.

Would you mind drafting me a letter to send to the IP. You obviously know 999% more than I do on this and do feel out of my depth.

I would like to basically say we are going for the full amount but we would ask that anything we recover would be split 50% to her, 50% to the plan (That is how I read what you are saying, I may be wrong). I would need to include the third party bit that is in the IVA plus the advice that they originally gave me about the creditor just offsetting the debt

If you cant, NOo problem whatsoever and excuse me for asking (But there is another scale tip in it for you lol)

[gizmo111]

I'll do anything for another shiny pip

Won't be tonight - either tomorrow night or Sat morning if thats Ok?

Originally Posted by Isiris

Giz

Im going to ask you a massive favour and understand if you cant.

Would you mind drafting me a letter to send to the IP. You obviously know 999% more than I do on this and do feel out of my depth.

I would like to basically say we are going for the full amount but we would ask that anything we recover would be split 50% to her, 50% to the plan (That is how I read what you are saying, I may be wrong). I would need to include the third party bit that is in the IVA plus the advice that they originally gave me about the creditor just offsetting the debt

If you cant, NOo problem whatsoever and excuse me for asking (But there is another scale tip in it for you lol)

[Isiris]

Hip dip dog lip

Thanks very much. Whenever you can, no problem