i am now getting seriously concerned

[andy9]

i am now getting seriously concerned.my wife and i took out an IVA and the repayments started in the summer,and since then we had recieved letters from one of our creditors asking for payment .our IP told us to disregard them as it had been dealt with as part of the agreement.Today i recieved a letter from a debt collection agency on behalf of the said creditor,who say payment is overdue and court action is looming.
my concerns are that if the creditor hasnt informed this agency of the agreement they will come round and start taking goods to the value or i will be summonsed to court or secondly despite my IP's assurances this creditor wasn't included in the IVA ,even thought they were asked to include it and have confirmed to my wife at least twice that it was.
where do i stand,i cant afford to pay them (they want it payment in full) and i believed that is was included

[OPTIMIST12]

ALL your Creditors included in your IVA should be listed in the papers prepared by your IP and submitted to the court and creditors with your IVA proposal. Check your papers to make sure that this Creditor is named on there as a Creditor. If so then surely they are legally bound to abide by the terms of the IVA. I can understand how worrying this must be though - best to get it sorted asap.

[Cybus]

I would contact the Collection agency and suggest to them that they view the Electronic Individual Insolvency Register.

I assume that the debt they are collecting was incurred prior to you entering in to an IVA?

If so, I would firstly

Astound the collection agency with your knowledge of the Insolvency Act 1986 [:D] and quote Section 260(2)(b)...

The approved arrangement binds every person, who in accordance with the Rules :-

i) Was entitled to vote at the meeting (Whether or not he was present or represented at it), or
ii) Would have been so entitled if he had received notice of it,
as if he were a party to the arrangement.

Basically the fact he was not served notice does NOT mean he is not bound. It would also be worth pointing out to them that any costs they incur in trying to take this to court will not be recoverable and so they are effectively throwing money away.

Secondly, contact your IP again and ask that he immediately contacts the creditor concerned and forward them a copy of the proposal and the Chairman's Report on the outcome of the creditors meeting. It is not good enough to tell you to disregard the correspondence you have received, they should be asking you to send it in to them to deal with appropriately.

A decision now needs to be taken by the IP as to whether the inclusion of this creditor in the arrangement is going to materially affect the outcome of the arrangement.



Tell it like it is.

[andy9]

thanks for that,just to bring you up to date.i have now spoken with the agency who are putting a 7 day freeze on things until they have heard from my IP.i do not appear to have recieved a copy of the agreement so i cannot tell whether or not said creditor is on it or not.i have sent word to my IP to contact this agency and to set the record straight.
if the creditor hasnt been included,despite my asking them to be and being assured they were ,where do i stand?

[Cybus]

By virtue of Section 260(2)(b) of the Insolvency Act 1986, the creditor IS bound by the arangement, no matter how hard done by they might feel or what representations they may make to the contrary.

It does not matter if their name did not appear on the proposal. It would be described as 'honest omission' and provided the amount owed to them does not materially affect the outcome of the arrangement, there is nothing to worry about.

Just for your own piece of mind and for your own future reference, ask that your IP forwards you a copy of the proposals lodged in Court and a copy of the Chairman's Report lodged in court immediately following the meeting of creditors

Tell it like it is.