Hello IVA experts. My IVA was approved in October 2012. The total debt was £115,000 and was settled with a lump sum giving creditors 25p in the pound. Recently a private individual has made a claim against me for £6000 and has threatened County Court Action to recover same. I feel that the maximum owed is £3000. What do I do with this creditor? Will I have to attend the County Court hearing to establish the amount of the claim or will the IP deal with this aspect. Perhaps the County Cort will not allow service of a summons when the defendant is in IVA? Is this new creditor entitled to 25p in the pound from the lump sum paid into the IVA? How will the amount be decided? Can a new creditor be included after voting is complete? I will be asking my IP when she returns from holiday in two weeks, however, i'd really be grateful for any advice and comments. Thank you.
My IVA will be completed in 6 months from October 2012 by which time final figures will have been agreed with HMRC and funds dispbursed to creditors.
The creditor was mentioned to the IP as a possible creditor as no claim had been made at that time and it was unknown if a claim would be forthcoming. Under those circumstances we could not include them in the IVA b ecause writing to them as a creditor when a dispute was in progress and they had not claimed was not seen to be appropriate.
Thanks Niobe for responding. I'd be really grateful to hear from any IP's on the forum to hear how they advise on this problem or any person who has a similar experience to mine. Happy New year by the way!
Surely your own IP is going to give the best advice, they know your case and they are administering it. Advice and opinions from forum members are all well and good, but that's all they are. Contact your IP and get definitive advice and action on your IVA.
Last Payment made 04/12/14. Completion Certificate 25/7/15. IVA company GT. No Issues
hi think given the circumstances, which seem a little unusual ,I suspect that only your own IP can assist as without doubt, yours is definately a case specific matter
Im sure one of the IPs may be able to offer an opinion, but this would only be that as they wouldnt have all the details
I guess your perhaps trying to pre-empt what your own IP may come back to you with
Last payment made April 2012
Certificate received 1st Nov 2012
Whilst the debt was disputed at the time you entered into your IVA, I would have thought your IP would have made efforts to establish the position and at least highlight its existence to creditors in the IVA proposal - warning them that a further debt would disturb the dividend eventually returnable.
Best thing to do is discuss this with your own IP when she gets back. The debt can be included in the IVA, but if you have guaranteed to pay a certain dividend, or it results in claims being 15% or more of the original sums, then a variation meeting may be required - and I think you will be lucky to get your HMRC liabilities agreed within 6 months. HMRC currently have a 12 month backlog.
