www.iva.co.uk

If a debtor has entered into an IVA does that protect him from creditors outside the jurisdiction?
If a creditor from outside the jurisdiction was present at the creditors' meeting is the creditor bound by the IVA or can the creditor enforce a judgment (obtained prior to the IVA) in the creditor's jurisdiction?

Hi and welcome.

Once you enter an IVA then all of your unsecured creditors are bound by it. There should be nobody that was excluded at all.

Creditors meetings are usually conducted by phone and/or fax.

If the creditor is included they cannot obtain a judgement.

Have you have some problems? Are you in an IVA?

If you took out a loan or credit from this debtor while you were in the UK and they were advertising to UK 'customers' then they are within the jurisdiction of the IVA, even if they are a company from outside the UK.

I did wonder that but I think the OP might mean creditors within the legal confines of the IVA.

I could be wrong of course!

If we're talking about geographical jurisdictions, I'm not sure whether a foreign creditor based abroad and not licensed in the UK would be bound by the IVA. Hopefully one of the professionals will be along to clue us all up!

I think we need the OP to come back on and give us some more information to sort out any confusion.

Definitely! We could speculate all night!

It could make for an interesting thread!!

From my limited training in this matter, if the creditor is outside the UK and the money was borrowed outside the UK then they will be bound only by local law and local insolvency regulations so would not be bound by an IVA. An example would be if you lived in say France and took out a French Credit card with Banque Populaire then it would not be included in the IVA because it is outside UK law. If a foreign bank lent you money in the UK then it would come under UK law and regulation and could be included in the IVA. If a UK bank lent you money through a foreign division, eg. barclays in Spain it should come under Spanish law but you would need to check theccredit agreement

I think we do need the OP to clarify things so that we can give proper advice.

The answer to these questions is never easy, but in principle there is no reason why the foreign creditor cannot be bound by the UK based IVA. It will depend upon the type of cross-border agreements there are in place between countries, and from a practical perspective English law may be disregarded in the foreign country leaving it very expensive to enforce even if the correct answer is that the debt is properly bound.