I have been receiving some phone messages from SSE (Gas and Electric) still chasing me for my debt to them, 10 months after I set up my IVA. So I rang Harrington Brooks, who provide my IVA, and asked them if SSE were being paid a monthly amount. I was told no, because they are yet to submit proof of the debt to HB. I then asked whether any of the other companies were not being paid out of my monthly payment, and was told that another 4 or 5 companies (out of only about 8 or 9 I actually have debt with) had also not submitted proof of my debt with them and therefore THEY weren't getting paid either. Bare in mind this is now 10 months into the IVA. I was then told that even if these companies don't submit the proof of debt for the next 4 years, and my IVA completes without any of those companies receiving a penny, my debt will still be written off as agreed at the start.
My 1st question is, as my monthly payment was worked out based on how much I owed to each company, where is the money going that should be going to these companies who aren't getting anything from it. Does it get kept aside to pay them if they eventually do submit proof of debt? Or would it get given equally between the companies who are getting paid who did submit proof of debt.
And my 2nd question is, is it true that even if the companies who aren't getting a penny at the moment, and possibly never will if they don't submit the proof of debt to Harrington Brooks, if they don't get any money in the 5 yr period, am I still definitely free of debt at the end, of can these companies then say they had nothing to do with the IVA, you still owe us?
If a company does not submit a proof of debt they can be excluded from the IVA and have no legal recourse against you now or in the future. Their share of any funds would then be divided among the other creditors which would improve their dividend.
If you get any calls from creditors refer them to your IP and hopefully they can sort it out between themselves.
