I lent a friend a sum of money several years ago but the Charge on his Property was never sent to the Land Registry (an oversight by me).
His IVA has been going for 18 months (I was unaware of it) and I was not registered as a Creditor at the time (it had been assumed I was a Secured Creditor).
The Property was sold recently.
I have contacted the Supervisors but what is the likely outcome ?
Thanking you in anticipation.
You will most likely be included and treated as any other creditor. So you'll receive dividend payments and cannot chase any amount written off when the IVA completes. If your debt increases the total by more than a certain percentage then the IVA could fail. You will need to speak to to your friend's IP.
How long ago did you loan this money? If it's more than six years and it is not now a secured loan you may find that it is statute barred if there has been no aknowledgement of the debt.
However, I'm not 100% on that so hopefully one of the experts can help.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I have asked the Supervisors why they didn't investigate the validity of the Secured Creditors at the beginning of the Process.
If they had contacted me at the time I would have sent the relevant forms to the Land Registry.
If it is secured then it would be paid for outside of the IVA. I have no idea what the position is as you did not secure it.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
The Loan was recorded as a Charge on one of my friend's Properties which was to be included in the IPA.
The nightmare scenario would be if I was deemed NOT to be a Creditor.
The Money would then be distributed among the Registered Creditors and I would have lost everything.
I still wait for the Supervisor's decision.
Is there an Ombudsman ?
I THINK it would be The Financial Ombudsman Service. But stick with us while you find out your position before you start worrying. We can cross the next bridge if you come to it. Hopefully one of the professionals will be along.
If you did not take steps to register the charge, then the IVA supervisor may not have known about it if the debtor did not disclose the loan. You should receive a proportionate dividend from the IVA as the rest of the creditors.
This is to thank everyone on this bulletin board.
If this bulletin board had not existed I would have had a very frustrating time.
RSM Tenon finally created a system to deal with VAT/PPI and as a result
my friend's IVA is coming to a successful conclusion (BTW thanks for the f&f advice).
