www.iva.co.uk

I'm a Creditor !

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.

Thank you for the helpful replies.

The loan is quite recent (about 3 years ago).

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.

Did your debtor tell his company about this loan?

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.

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 if you have the paperwork to prove the loan then you will get a share of the IVA BUT if not then you will have lost out.

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.

Thank you all for the useful information.

I'll let you know the outcome.

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).

So glad that you have found the forum useful, and everyone involved will be happy to hear the positive outcome of your own situation.

Hi! All's well that ends well! Glad you got everything sorted and you remained friends x