The debtor can retain the money from PPI at any stage of their IVA if the asset was not expressly included, or the IVA is a "defined asset" case. I gather that some IPs are claiming that it should have been included and on that basis they are claiming the money and refusing to issue completion certificates as a result. This is a dangerous game in my opinion - as also highlighted in the recent regulatory guidance.
@ M Giles
If the IVA was not an "all asset" case, then unless the PPI was expressly included in the IVA the money would be the debtor's to retain.
The guidance recently issued to IPs by the regulatory bodies, makes it clear that there is no duty on an IP to reopen cases which have been closed specifically for the purposes of chasing PPI monies, however there is nothing to stop them doing this if they feel it is appropriate. And if creditors contact IPs after cases have been closed regarding the correct home for PPI monies which have been claimed directly by their clients, then if the IVA provided for this to be treated as an asset, then the IP may take the decision to claim the money an effect a post-closure distribution to creditors.
I personally would not re-open closed cases, but if retrospectively offered money the IVA creditors were rightly entitled to, then I would rightly claim it - in accordance with guidance issued and my own independent legal advice.
What does this mean please if the PPI was not included within the IVA Proposal or if it was included ?
Please can you be clear if it is a all asset IVA then the PPI would be included - ??
The terms of the specific IVA proposal will confirm whether it is an "all asset" case or whether it is a "defined asset" case. If you are in any doubt, then check with your own IPs.
If the case is an "all asset" case, then effectively you are pledging all of your assets to creditors - those known and those which may be yet unknown - but which exist at the commencement of the IVA.
Yes Vesper - all assets means all assets including PPI. If you cannot find the appropriate section in your own proposals, ask your IP. Which firm are you with?
The debtor can retain the money from PPI at any stage of their IVA if the asset was not expressly included
I cannot find this within my IVA this is the problem that is not being addressed from my IP and I cannot disclose this as i am in contact with the regulator of this firm at the moment
Assuming your complaint to the regulator surrounds the treatment of PPI, then I would address this issue with them directly Vesper. I am afraid that I cannot give more specific advice about your own case on the forum - as clearly I do not have detailed knowledge of the IVA proposal or the associated terms and conditions.
Hope this gets sorted out for you amicably very soon.
Hi Mel, Just so I know I am looking at the right paperwork is the IVA agreement the document titled "Proposal for an Individual Voluntary Arrangement". I have so many copies of paperwork it is all very confusing.
Cheers in advance.
Ok, so the "Proposal" under "Assets" details the excluded assets, house etc, and then has a clause for "Included assets" which again covers only the property in relation to the equity release.
The T's & C's only covers "after acquired assets", any assets which come into our possession after the commencement of the IVA and property in our possession.
In your opinion is this an "all assets" IVA??
Also within the T's & C's there is a clause which states: "when the supervisor has issued a completion certificate you will be released from all debts that are subject to the arrangement."
Given this clause how can the IP still claim PPI at a future date after the completions cert has been issued...
I cannot say nickjohn - indeed it would be dangerous for me to advise you on a public forum without seeing the whole proposal. I really do recommend that you direct these questions to your own IP, who does have detailed knowledge of your case. Remind me of the firm you are with please.
Hi Mel thanks for the feedback I fully understand you cannot give a complete answer.
As I have the paperwork out I noticed another clause relating to the equity release where it says; "cap on total equity released not to exceed 100% of outstanding unsecured liabilities". Would the "unsecured liabilities" include for the IP fees??
