Can dodgy business men hide behind IVA's?

[pamela]

A debtor owes me money from a CCJ for breaking consumer laws. He sold me a car unfit for purpose. He has now applied for an IVA and the IVA company have told me I will not get any money back. Can Court orders from bad business practices be consolidated by an IVA? Can dodgy business men, such as this hide behind IVA's? I am the 4th person who has won a CCJ against this garage and we have all been told the same thing. We have also been told that he can continue to trade. Seems rather unjust.

[MelanieGiles]

Hi Pamela and welcome to the forum

If you are a genuine creditor of this person, then I cannot understand why the IP is saying you will not get any money back. Surely the dividend on offer is more than 0p in the £!

The issue of him continuing to trade is one for Trading Standards, I am afraid - but this does not mean that you should not be repaid a proportion (if not all!) of your debt in the proposed IVA.

[pamela]

Thank you for your reply.

Trading Standards are investigating this gentlemans business practices.

I have instructed a solicitor to act on my behalf in respect of the monies owed because this gentleman is operating as a second hand car dealer and I have won my court case against him 'Trading as...' hence there must be other avenues I can pursue.

But it does appear to be the case that even self-employed people breaching consumer laws can use IVA's to write off debts, so despite the so-called protections in place, it is still a case of 'buyer beware'.