Tomlin Order and Individual Voluntary Agreement

[romanytony]

I have a question re the above, not sure if this is the correct place for a general question.

 

Some years ago Cabot took my wife to court over a Barclaycard account, although there was no signed agreement,

 

 

my wife and I disputed the amount, we were advised by the judge to enter into a Tomlin order agreement.

 

 

We have been making regular payments on that ever since, making sure we don't default.

 

 

It is my understanding that a Tomlin order is old fashioned and it has now been superceded by a IVA's.

 

 

I further understand that these IVA's run for a maximum of 5 years, after which the account is deemed cleared.

Is this correct, and if so does this apply to our Tomlin order?

 

Just as an aside to this

I heard on the radio last week that some people who had entered into an IVA

and had paid for five years AND had received a final 'completion' letter from their creditor,

found that if they had any sort of windfall (such as a PPI repayment) suddenly got a new demand for repayment

even though they had a completion letter.

It was thrown out by the court but they tried it on.

[dx100uk]

when was the CCJ

[romanytony]

There was never a CCJ, the Tomlin agreement was made on the advice from the judge. The judge said that we should reach an agreement, so I had to follow his advice. We left his chambers and Cabot lawyers and myself discussed firstly the amount owed, which I managed to get reduced, then I made a nominal monthly offer backed up by a home budget plan, which they had to accept. We then went back before the judge to inform him we had reached an agreement. This was four years ago. The judge said if it had gone before him he would have awarded Cabot much more, so I did OK.

[obiter dictum]

I myself have a Tomlin Order

 

These orders are sealed by the court and are not old fashioned. It stopped me from getting a CCJ.

 

It is my understanding that only the agreement from the creditor (Cabot) or a redetermination from the court that sealed the order can change the terms of that order.

 

I myself wold leave this well alone but i am not legally qualified to advise, i am going on my own experience as to the Tomlin order

[AndyOrch]

A Tomlin Order and a IVA are two completely different beasts...the Tomlin finishes once the debt is repaid.

 

Regards

 

Andy

[citizenB]

So you should be ok to start a reclaim for your mis sold PPI

 

You should submit your claim to the original lender.

[AndyOrch]

Would depend on the terms of the Tomlin CB...if the Schedule stated that the F&FS agreed figure was accepted with regards to the debt and that no further claims can be brought in connection.

Very rare ...but I have had dealings with this clause....were the defendant has allowed it to be included or simply not spotted or understood its consequences.

 

Andy

[citizenB]

Would depend on the terms of the Tomlin CB...if the Schedule stated that the F&FS agreed figure was accepted with regards to the debt and that no further claims can be brought in connection.

Very rare ...but I have had dealings with this clause....were the defendant has allowed it to be included or simply not spotted or understood its consequences.

 

Andy

 

Ah.. I missed that bit, my apologies

[AndyOrch]

But if its not in the schedule then of course you are quite correct CB...if there is a PPI element involved in the posters question.

[romanytony]

But if its not in the schedule then of course you are quite correct CB...if there is a PPI element involved in the posters question.

 

Just to clarify. The reason for my question is this. Whilst talking to a financial adviser she informed me that Tomlin orders have been replaced with IVA's. It is a voluntary agreement of scheduled payment between a creditor and debtor. A Tomlin order means that if there is a default the creditor can obtain a court order for any outstanding money. The second reason for the question is that a recent money box program stated that after five years of payment under a IVA the debt is cleared.

[Ganymede]

Your financial advisor needs to be careful with her advice.

 

A Tomlin Order is an agreement between you and that specific Claimant only AFTER court proceedings have been issued and there is no public record kept of the details. It stays Court proceedings and you pay for as long as it takes to clear the amount. If you breach the TO then it is likely you will get a CCJ.

 

An IVA is similar to bankruptcy. It is a formal agreement between you all all of your creditors and your home could be at risk. It is not sealed by the Court but a public record is kept unlike a TO.

 

There's much more to both but the above is a brief outline.

 

Find more IVA information here:

 

http://m.stepchange.org/how-we-can-help-you/debt-solutions/iva/

[romanytony]

Thanks Ganymede. It was a person fron National Debtline who stated Tomlin orders were old fashioned and IVA's are now being used, hence my confusion. They are two different structures. That leaves me a little confused though over the court proceedings. My wife was summoned by Cabot, and I met with their legal people before a judge, he stated that he had had a look over the case and advised me to reach an agreement with Cabot. I was quite willing to pay, but didn't want the Tomlin order part, but didn't seem to have a choice. We went to an adjoining room and hashed out the terms, then went back in to see the judge where Cabot confirmed an agreement had been made. Maybe I'm being stupid here but does that qualify as 'court proceedings' as you state? The judge didn't really take any part in it other than to advise me.

[Ganymede]

Yes.

 

A Court claim had been issued and your TO puts it on hold whilst you abide by the terms.

[AndyOrch]

You need to keep away from that Nation Debt line then...if that's their advice:madgrin: