A friend has an IVA

[flunky]

If someone has an IVA does it create any issues with the claiming of charges ?

 

The issue he has is that a lot of the charges contributed towards the IVA.

 

He has credit card charges and bank charges.

 

Thoughts would be very much appreciated.

[gillytilly]

He/she needs to speak to the executor. I believe that if a substancial amount is claimed then the creditors will want it, so its not worth it. However a less substancial amount the creditor will not be interested. I also beleive that if the charges are iccurred after the iva is set up then it is not a winfall so can be kept. My advice contact the IVA company

 

Gilly

[Jimbo44]

This has been discussed recently in another thread here.

 

I'm a creditor, owed a substantial sum in an IVA and anything like charges being refunded is most likely to be classed as a 'after acquired assets' by the debtor's Nominee.

 

The standard conditions attached to the paperwork I have make it very clear that the whole of any sum acquired by the Debtor must be shared among the Creditors as a part of the IVA to settle either the whole debt or a part of it.

 

This includes sums...."the existence of which was not or could not reasonably have been been known or envisaged at the date of the Creditors approval of the Arrangement".

[Glenn UK]

He/she needs to speak to the executor I would agree that you need to inform the insolvency practitioner that the debts are made up partly of unlawful charges and that you intend to reclaim them. I believe that if a substantial amount is claimed then the creditors will want it, so its not worth it.Strongly disagree with this, anything to reduce or remove a debt has to be beneficial in the long term to the claimant, the fact you wont necessarily get your hands on the cash is immaterial. However a less substantial amount the creditor will not be interested. I also believe that if the charges are occurred after the IVA is set up then it is not a windfall so can be kept.One of the problems with this question is that people post what they think and in some cases what the insolvency practitioner thinks rather than refer to the IVA itself. What i suggest is that you need to look at the conditions imposed by way of the IVA and see what it actually says. In principle the IVA is a legal procedure and requires the subject to act in good faith, from what i know of these there is not a condition that says if you acquire some money you don't have to tell the practitioner about that money. SO although they m,may say they aren't interested in a claim with a small value of say £100 or so, the subject doesn't know for certain unless the conditions of that IVA specifically mention this. The consequences of not acting in good faith could mean the individual ands up in a lot more sh1t than they needed to for the sake of a few hundred quid. My advice contact the IVA company

 

Gilly

 

IMHO

 

You should be wary of an insolvency practitioner who tells you that they aren't interested in any money you reclaim.

 

They may be charging you money for dealing with the IVA and it may be in their interest for you to continue paying rather than settle debts or reduce the balance.

 

If you decide not to discuss any of this with your insolvency practitioner about this issue, then you need to be certain that your creditors wont find out.

 

JMHO

 

Glenn

[Glenn UK]

This has been discussed recently in another thread here.

 

I'm a creditor, owed a substantial sum in an IVA and anything like charges being refunded is most likely to be classed as a 'after acquired assets' by the debtor's Nominee.

 

The standard conditions attached to the paperwork I have make it very clear that the whole of any sum acquired by the Debtor must be shared among the Creditors as a part of the IVA to settle either the whole debt or a part of it.

 

This includes sums...."the existence of which was not or could not reasonably have been been known or envisaged at the date of the Creditors approval of the Arrangement".

 

Jimbo

 

I thank you for posting this info, i was typing as you were posting, i never actually signed up to an IVA and so never ended up with all the paperwork so was working on my understanding, it seems you have confirmed my thoughts concisely.

 

Glenn

[Jimbo44]

Jimbo

 

I thank you for posting this info, i was typing as you were posting, i never actually signed up to an IVA and so never ended up with all the paperwork so was working on my understanding, it seems you have confirmed my thoughts concisely.

 

Glenn

 

Thanks Glenn.

 

I should perhaps stress that what knowledge I have of IVA's is solely based on my experience as a Creditor in someone else's IVA.

 

It may well be that the 'Standard Conditions', which I quoted from in my earlier post above, could differ slightly between the various IVA Practitioners. However, I'm sure the general principles would be very similar.

 

The IVA Practitioner I'm involved with is one of the larger, more well known ones and I must say I've found them extremely helpful with the few questions I have raised.

 

I did approach them recently as I'd heard something about the person who owes me money and during the conversation I did mention the question of 'charges' by banks and credit card companies. Whilst the person I deal with professed little (or no) knowledge of the matter of these being reclaimed, she did express the opinion that any refund received would be put into the 'IVA pot' to be shared by all.

[bill-k]

Hi Flunky, I am in a similar position. I haven't read this thread through, yet, but here's a link to mine:

 

http://www.consumeractiongroup.co.uk/forum/debt-bailiffs-advice/42981-trust-deed-scottish-iva.html

 

"I have a cunning plan..."

 

Here's acouple of others:

 

http://www.consumeractiongroup.co.uk/forum/debt-bailiffs-advice/50864-getting-out-iva.html

 

http://www.consumeractiongroup.co.uk/forum/general-consumer-issues/46363-claiming-whilst-starting-iva.html

 

Bill

[flunky]

We are talking a lot of money owed to IVA / creditors. He is not the brightest spark but I feel he has been really screwed over.

 

I must admit that I do not fully understand the process of IVA.

 

So for me to clarify, General consensus is that if he claims money back from these banks, cards etc (who the IVA is for) than any large sums must be paid back into the IVA pot. therefore it would not be worth it as the discounted repayments would then not be, as he would of paid more monies than he ordinarily had to, correct ?

 

I am glad I asked.Thanks all.

 

Any other thoughts would be very welcome.

[Glenn UK]

We are talking a lot of money owed to IVA / creditors. He is not the brightest spark but I feel he has been really screwed over.

 

I must admit that I do not fully understand the process of IVA.

 

So for me to clarify, General consensus is that if he claims money back from these banks, cards etc (who the IVA is for) than any large sums must be paid back into the IVA pot. No, any sum claimed back should be declared dont forget you are likley to be suing the debtors creditors.therefore it would not be worth it as the discounted repayments would then not be, as he would of paid more monies than he ordinarily had to, correct No, reclaim them, it reduces the debt and possibly wieps some creditors off the list. ?

 

I am glad I asked.Thanks all.

 

Any other thoughts would be very welcome.

 

if he owes a lot of money chances are a lot of it are charges, reducing the debt could be to his advantage in the longer term.

 

Glenn

[CrispDust]

I think we need more info.

Little point if he claims back off banks then pays it all back to them?

How much % you pay off on debts has little bearing on future credit history. Your IVA sticks with you 6 or 2 years, whatever.

[Jimbo44]

I think we need more info.

Little point if he claims back off banks then pays it all back to them?

How much % you pay off on debts has little bearing on future credit history. Your IVA sticks with you 6 or 2 years, whatever.

 

The IVA I'm involved with is for a five year term.

 

I do agree with what Glenn UK says above ("if he owes a lot of money chances are a lot of it are charges, reducing the debt could be to his advantage in the longer term"). If the imposition of 'unlawful charges' contributed significantly to the situation which led to the IVA and the return of these 'charges' reduced the overall debt, then I think it should benefit all, creditors and debtor alike.

 

A word of warning though, if the bank retained the refunded 'charges' to offset it's own debt, to the detriment of the remaining creditors, then I feel this should be pointed out to the Insolvency Practitioner as grossly unfair, if not contrary to the conditions surrounding the IVA which they agreed to at it's inception.

 

Certainly if this scenario was lived out in 'my' IVA I would raise the strongest possible objections with the IP concerned. I believe that a bank listed in an IVA is an unsecured creditor just like all the others. The only exception I am aware of is if the bank was a secured creditor via a mortgage or other charge on property and/or assets.

[flunky]

So would you guys bother to claim back ?

 

What we do not want to do is go to the trouble of getting refunds and then have to give it back to them. Have since spoken to him and quite a lot is charges cannot give % though.

[bill-k]

Any other thoughts would be very welcome.

 

Hi Flunky, I am in a similar position. I haven't read this thread through, yet, but here's a link to mine:

 

http://www.consumeractiongroup.co.uk/forum/debt-bailiffs-advice/42981-trust-deed-scottish-iva.html

 

"I have a cunning plan..."

 

Here's acouple of others:

 

http://www.consumeractiongroup.co.uk/forum/debt-bailiffs-advice/50864-getting-out-iva.html

 

http://www.consumeractiongroup.co.uk/forum/general-consumer-issues/46363-claiming-whilst-starting-iva.html

 

Bill

 

There are some thoughts there if you're interested.