whilst in an IVA it doesnt matter where the money comes from, its pulled in to yield a higher dividend for the creditors, no matter if it was settled prior or during the IVA.
arty
IVA completion and certificate received 08/10/2012!!!
A mis-sold PPI claim is not an after-acquired asset given that it existed at the time you entered into the IVA. Unless there is something more specific about the asst position, it may be likely that your IP is not entitled to claim the money graham.84 - but you may need to take independent advice on this point.
Ok, so i think I have the room divded. I have spoken with someone who works in involvency law. They seem to think that I should be entitled to the PPI. My proposal talks of a windfall clause, overtime, and after aquired asset. PPI claim falls as none of these. Yes its a very grey area but somehow he thinks slips through the net on all of them. The issue is the next step. I have emailed my IP with my finding. But if they still reject, where else can i take.
Any refund received must be entered in full into the Arrangement for the benefit of your unsecured creditors in accordance with Section 7.4 of Debt Lifeboat’s Standard Terms and Conditions that states:-.
After-acquired Assets
7.4 If prior to the completion of the Arrangement the Debtor shall become possessed of or receive assets or property (of whatever nature) which are not included in the proposal and: -
(a) the existence of which was not or could not reasonably have been known or envisaged at the date of the Creditors’ approval of the Arrangement, or;
(b) the existence of which was not disclosed to the Supervisor by the Debtor and that the Debtor owned at approval of the Arrangement, or;
(c) that as a result of any change in law, or any clarification of existing law, would be claimable by a Trustee in Bankruptcy of the Debtor as part of the bankruptcy estate if a Bankruptcy Order were made against the Debtor but would not have been so claimable in the absence of such change or clarification.
then the Debtor shall forthwith disclose the same to the Supervisor and make available to the Supervisor the whole of such assets or property or such part of such assets or property as shall allow the Supervisor to pay in full all the liabilities of the Debtor including the costs of the Arrangements and the Supervisor’s fees and disbursements comprised in the Arrangement together with statutory interest at the rate applicable to bankruptcies.
And in accordance with Modification 10 stating:-
“ Should the debtor receive or become entitled to any windfall or inheritance payment with a value of more than £500, during the course of the Arrangement which would be deemed after acquired assets within the meaning of Section 307 of the Insolvency Act 1986, it must be paid or transferred to the Supervisor for the benefit of creditors in the Arrangement. The maximum debtor is to pay will be 100p in the £ plus statutory interest at the rate applicable from time to time under Section 328(5) of the Insolvency Act 1986”
Furthermore, contrary to one of your advisers’ assertion, Mr Allen, acting Supervisor of your Arrangement, is entitled to supervise that the above asset is introduced into your Arrangement in its entirety for the benefit of your unsecured creditors.
I think those clauses do give him the right to claim the asset - but it is not right to call it an after-acquired asset - so clause 7 works for me but clause 10 does not. Hasten to add that I am not a lawyer, and you ought to take your own advice if you want to challenge the Suoervisor's decision.
Last edited by MelanieGiles on Wed Oct 10, 2012 3:00 am, edited 1 time in total.
I would be grateful if Melanie could advise on how Ppi would be treated if it could be claimed after an Iva is completed. my Iva was completed in 2012 and I have got my completion certificate. Could this money be kept or would it need to be paid over even after full completion of the IVA?
The conditions for my Iva show after-acquired assets and my conditions show revised January 2008 at the top.
The conditions state:
After-acquired assets
Subject to the following sub-paragraph, the supervisor may claim an asset of the arrangement any after-acquired assets.Any such asset will be subject to and be an asset of the arrangement.
After-acquired assets must only be sold or realised to the extent necessary to repay the creditors in full with any interest they are entitled to under the arrangement.
As a PPI reclaim is not an after acquired asset, but is an asset which existed at the time the IVA was taken out, whether it can be claimed post-completion does depend upon the wording of the individual IVA proposal.
You need to read the assets provisions and not those relating to after-acquired assets to find your answer - alternatively a chat with your former IP ought to clarify matters.
Hi Melanie thank you for answering I have looked all through the conditions of the Iva and I cannot find anything that states asset provisions it just states part VI arrangement assets and shows after-acquired assets As described and then also :
Holding arrangements in trust
Whilst the arrangement is in force you must holdin trust for the purposes of the arrangement any property in your possession, custody or control that is an asset of the arrangement, until it is realised if required in accordance with the arrangement.
The supervisor must hold in trust for the purposes of the arrangement any property in his:her possession, custody or control that is an asset of the arrangement.
It is difficult for me to give you specific advice on this point, without sight of your full proposal documents - and carefully studying the terms of the IVA. Even then, I can only give general guidance rather than advising you specifically. If in any doubt, you must either clarify this with your own IP or seek legal advice.
