Dear IVA Experts,
On completion of the 4th year of our IVA, my wifes parents suggested we ask our IVA practitioner if they would accept a final settlement figure to complete the IVA one year early. Their premise was to lend us the money to pay this final figure off in full!
We were told this was possible and they advised us of the amount needed to complete the IVA, this had to be agreed by our creditors and was confirmed as accepted in Feb 2013.
The "Final Settlement Figure" was paid in full in Feb 2013 and I was told that completion of the IVA through to Certificate of Completion could take upto 6 months!
Shortly after paying the final settlement amount in full, we received correspondance from our IVA practitioners stating they had appointed a company to contest any and all PPI claims relevant to accounts within our IVA.
We were then inundated with letters from said company asking us to complete letters of authority permitting them to investigate, any potential claims. We are still receiving correspondance asking us to sign letters of authority relating to certain accounts.
Our certificate of completion for the IVA was recieved in March 2014 and the certificate dated 04 February 2014!
I have corresponded with the PPI people and have been given a difinitive list of around 15 cases still being pursued by them, on asking the question "what will happen to the funds should any of them be successful" they informed me that we signed a Mass Variation and any refunds will be paid into our arrangement? Am I wrong in assuming that having paid a full and final settlement figure in Feb 2013 and having to wait 12 months for our completion certificate received in Feb 2014, that as at July 2014 we are surely no longer in an arrangement?
Any guidance would be greatly appreciated,
Kindest Regards
Hello and welcome .... the whole subject of PPI is a vexed one. However, mosy IP's consider PPI an asset of the arrangement, which existed prior to and during the IVA and, as such, is payable to the creditors.
It is an, as yet, unclarified point as to whether a full and final would override as asset that was, technically, already part of the arrangement before the F&F offer was made and accepted. This would have to be clarified in Court, which would prove costly. In any event, you signed a Mass Variation document, the purpose of which was to sign over PPI refunds to your arrangement.
It has already been established in Court that the IVA creates a continuing Trust under which outstanding assets are dealt with post formal completion. So, although there is no longer an arrangement, there IS a continuing trust.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thank you for the prompt reply Foggy, I just feel slightly averse to signing letters of authority so they can chase and potentially win back funds for my IVA practitioner when I believed I had paid my arrangement off in full in February "2013"....
Thanks again for your response.
Kindest Regards
Steve
Last edited by pushcaddy on Thu Jul 24, 2014 5:59 pm, edited 1 time in total.
