I entered into an IVA two years ago. I receently received my annual statement and when I was looking through it I noticed that one of my creditors had an "unproven" debt. This debt does not receive any divdends and is not part of my total unsecured debt. However the amount that I pay monthly is based on a sum including this "unproven" amount. Is this correct?
The "unproven" amount is purported to be in excess of £14,000 and if it should not be included in my IVA I will actually end up paying back £6,000 more than my total unsecured debts.
I hope this makes sense and that you can offer some advice.
I've not heard of that before, hopefully one of the professionals will be along to advise later.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
If the debt is unproven, your IP ought to be either resolving any dispute or formally excluding the debt. Two years into an IVA seems ample time to me to have had this matter resolved.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
If it is the case that this debt is formally excluded what will this entail? I assume that my payment will be reduced accordingly? Will anything else happen?
I contacted my IP today and they said that basically this "unproven" creditor has the full term of the IVA to decide whether or not they wish to prove their debt.
However as I tried (to no avail) to point out to them I am paying back a monthly amount inclusive of this "unproven" debt. My IP said that there is no provision to exclude the debt and basically if this creditor decides to make a claim at any point before the end of my IVA (up to and including it's final day) then they can and they will receive dividends. I asked what would happen if the amount that they final "prove" is less than the creditor has suggested (and which my payments are based on) and they made it clear that this was simply tough - I have to continue to pay for something that my creditor hasn't actually proved that I owe as in my IP's words I am in a "legally binding agreement".
Is there anything that I can do? I feel that this situation is extremely unfair and that my IP is more interested in the administration fees than in actually helping me.
What a very helpful response you have received Claire!
If your IP is distributing monies to your other creditors, how will they be left with funds to deal with this claim if it is eventually submitted? Are they setting aside monies for such purpose, and if so what happens if the claim is eventually agreed at a higher sum?
There is provision to exclude claims from an IVA, and your IP ought to be well aware of this. Was it the IP you actually spoke to or just a member of staff?
