IVA completed but another debt has come to light

[paula.c]

an IVA was completed 2/3 years ago with all creditors receiving final settlement figures. However another debt has come to light which was outstanding at the time that the IVA was set up - I have read somewhere that any debt that was forgotten about at the time of the IVA being set up would automatically come under the same terms of the IVA? Does this mean that the debt has to be cleared at the same rate as the IVA was or is it written off? Please confirm

[indebtforever]

i think this relates to an iva that is still running but an expert will be here soon to answer

[Moneystinks]

Sorry I'm not sure of the correct answer but please stick around as somebody on here will know.

[Soulgrowth]

Hi Paula

This happened to me and caused my successful IVA to fail ... BUT that was only because the debt involved was for so much and ongoing ( a liability to pay a lease) that it would have made my IVA impractical to continue with.

How much is the debt for? As I remember the way ahead is for your IP to arrange a variation meeting where the existing creditors vote to incoporate the debt into the existing IVA ... although I think you may be right in that if the debt was pre IVA it should automatically be included ... as you can see I'm no expert! [:(]

Best thing is to talk to your IP.

Debbie

[indebtforever]

If you have any ongoing debts that were excluded from the original IVA (for whatever reason), you will still have to pay these debts once your IVA has completed.

It is really important that you disclose and include all your unsecured debts in your IVA. If the debt is in the IVA, your creditor cannot take legal action to recover it. If it is not in the IVA, your creditor is within their legal rights to pursue you for it.

[animaleyes76]

You might want to check out this link re the statutory limitations act.

http://www.payplan.com/debt-library/joi ... t-1980.php


If the IVA has been concluded in the last 2 years (and as an IVA is 5 years) the debt may be unenforceable as the act allows some debts of 6 years + to be unenforceable

The link should tell you if you may be able to get this written off. If it does apply, write to the creditor quoting the act, you'll be amazed how quickly they will disappear

Got to be worth a go!!

)

[ianmillington]

If the VA was approved after 1/1/2003 then the creditor is bound by the IVA. However, there are special rules that apply for creditors who do not receive notice. They are still entitled to their dividend, but payable by you I'm afraid - let me know if you need chapter and verse on this.

Pre 1/1/2003 - The creditor is not bound at all if not notified, although the limitation act may apply as animaleyes has said.

Ian