A friend has an IVA

[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".

[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.

[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.