www.iva.co.uk

Good afternoon

Hope you’re all well, I was hoping for some IVA advice if possible.

My IVA ended in 2019 it was shut because I was struggling with my mental health and I had a few payment breaks it was technically commenced in 2016 so it ended early but my creditors agreed to it and I received my completion certificate. I was told that there was still a post Iva trust for miss selling I’m pretty sure they said PPI miss selling which was being done through a claims management company which was fine with me as I don’t think I’ve ever had ppi.

What’s included in a post Iva trust? Like is it purely PPI or for example if I complained to my bank and was awarded £100 compensation would that be included.

The reason I ask is because I recently found current account bank statements at the time that I took out my loan with my largest creditor the statements showed that at the time of the loan I had been earning £1000 a month and each month gambling transactions on my current account got to like £1800 or more the creditor had already lent me 20,000 over the course of a year and a bit and then I applied for a loan after I was automatically accepted online and was given another loan which paid off the previous one. I appreciate that this was my fault for taking out the loans but I felt the third loan shouldn’t really have been given because of my situation the complaint went to the fos who agreed and the bank then agreed to return charges and interest on the loan because it had been irresponsibly lent. Now here’s where I get confused my IVA was complete at this point so i in turn paid back less as part of the agreement based on my income and expenditure, but the bank are saying they’ll pay me the money directly I’m scared this will impact my IVA so I called my Iva company to tell them the situation and they’re going
to phone me back Friday but my question is this is this money payable to the post Iva trust? It’s complicated because essentially the loan that took me into the Iva was the one I complained about I mean I don’t care if it is payable to the trust I just wanted to get some peace of mind before Friday because I’m anxious and I don’t want to do anything to ruin my completion certificate.

Thanks for any advice anyone can offer

Also I appreciate it was my fault for taking the loan I always had the intention of paying it back but I was so low and my gambling and drinking meant that I lost my job and I couldn’t I essentially ruined my own life I blame myself and I was irresponsible which is why I took the Iva to try and repay something I know people will say I shouldn’t have taken the loan and I shouldn’t but I was stupid and irresponsible.

Any advice or guidance from people with expertise greatly appreciated.

Thank you for your time

Regards

S

It could well be payable to the IVA trust to be distributed to former creditors. This will depend on whether your former IP considers it worthwhile to dig everything back up again -- I doubt they would bother for £100 (but some might), but if it was £10,000 they would certainly pay attention !

The trust remains in older cases in order to be able to deal with compensation, like PPI, but not only PPI which would have existed during the IVA, even though it wasn't known about at the time and this compensation could fall under this umbrella.

You have been upfront with your IP and I can see no reason why this should jeopardise your completed IVA --- they will either take the money or they might leave it with you. You have done the right thing.

Okay thank you - I just wasn’t sure what was included because last time I asked they mentioned green vs Wright and at the start of my Iva they got me to sign a claims management thing for PPI complaints.

Thank you for your help

Mon Dec 06, 2021 5:41 pmFoggy wrote:

It could well be payable to the IVA trust to be distributed to former creditors. This will depend on whether your former IP considers it worthwhile to dig everything back up again -- I doubt they would bother for £100 (but some might), but if it was £10,000 they would certainly pay attention !

The trust remains in older cases in order to be able to deal with compensation, like PPI, but not only PPI which would have existed during the IVA, even though it wasn't known about at the time and this compensation could fall under this umbrella.

You have been upfront with your IP and I can see no reason why this should jeopardise your completed IVA --- they will either take the money or they might leave it with you. You have done the right thing.

Hi Foggy can I ask another question please you say in your response

The trust remains in older cases in order to be able to deal with compensation like PPI but not only PPI which would have existed during the IVA" Two questions what about the money I paid into the loan prior to the IVA? because the trust is from the start of my IVA? what about payments to the loan that precede that? if I have to pay that in as well then that's fine I just want to know where I stand I hate the idea of the money being paid to me to hold on to for me then to pay the trust because I'm really impulsive and I don't trust myself so I'd rather know where I stand so I can put it all in a pot on my monzo and hide it from my view.

Yes, the money was paid to the lenders before the IVA began, but the potential for refund existed during the IVA.
In simplistic terms, look at it this way --- if you buy a Picasso and, several years later, run into difficulties and go bankrupt, that painting will be seen as a disposable asset. It would not be an argument to plead that it was purchased before the bankruptcy and, therefore, should be left alone.