My ex and I have a secured loan, which he has been paying since I left 2 years ago. This year a cash back amount was due on this and was to be mine as per a consent order/divorce agreement.
My ex now has an IVA which has taken care of all his other debts.
The loan cashback policy paid out last week and paid direct to the IVA administrators - completely bypassing me.
Is there anything I can do to get my money? He is going to speak to them and show them the consent order but I'm not sure it will do any good.
I don't really understand why the IVA administrators have got involved, the loan company said that they were trustee's. Surely I should have been informed?
Not sure I can really answer this for you - let's hope one of the IP experts will come on soon and be able to give you some answers.
It does seem somewhat unfair as you have it in writing, however once in an IVA any money received from creditors for reimbursement of interest or insurance etc are bound to be entered into the IVA pot - if this money was in your husbands name then it may have had to be done legally wise - as I say hopefully one of the experts will put you in the right direction shortly.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
You may need specialist legal advice on this as the consent order effectively transferred an asset from your husband to you while he was insolvent. He really had no right to do this so his creditors may well be entitled to the money.
I think your best advice would be to go back to the solicitor who drew up the consent order and have it looked at again. perhaps your husband's creditors would allow you half th money to avoid legal action which could be costly but this would require a varaition.
It was a joint asset though - not just his. He got the house, contents and car, and I was to get the cashback. The loan is in joint names.
We had to apply for the cashback once the policy had matured - I did this, and they sent me a letter to say that a check would be sent to the first named policy holder (I'm not sure who this is - I left all the paperwork with him).
Why would the loan people even know he is in an IVA though if secured loans aren't included in it?
They have to let them know I'm afraid. Don't know exactly why but I'm sure one of the experts will help.
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
All creditors are informed whether secured or unsecured. The IVA company would also have had a copy of the agreement and would have known it was to pay out. Your ex must have been first named on the policy and the loan company passed it to his supervisor as a windfall.
Thanks guys, but how can a joint 'windfall' be taken and used against something that has nothing to do with me?
So if I would have been the first named person on the policy, I would have got the money and it wouldn't have gone direct to the IVA administrators? Surely that is sexual discrimination (Can't you tell I work in HR?!), as the Male is always put first on any joint documents....
In actual fact on our mortgage and on all of the joint loans, I am the first named person.
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
My husband and I are 11 months into our IVA just had first year review and everything is staying the same ..phew !!
We also have a secured loan in joint names that has a £20,000 pay out next year, we thought that the IVA will take 50% allowing us to pay for essential household repairs i.e new garage roof and gutters as the house is falling apart it seems , also we were hoping to get a car thats newer and cheaper to run than ours as the one we have will just about see out 12 months. Are we right in thinking we will get 50% of this insurance payout or will it all go towards our debt and not make any difference?
hope im being clear!!
This may well be counted as a windfall in which case you will be expected to pay it all across.
I would have a word with your IP about keeping some back to fund another car.
You might find that paying across such a substantial amount will mean that you pay your creditors back in full and possibly end the IVA early.
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
its a bit annoying as the IVA peeps knew about this but havent forewarned us, also another question ,
the amount wouldnt pay our debts back in full at all, but i suppose would make a dent into it, when you say debts in full do you mean what we actually owe or the agreed payments for the next 5 years ?(taking off the year we have just paid near enough)
It would go towards your debts and you would carry on paying until you either come to the end of the IVA or you pay back the whole of your debts in full plus fees whichever comes sooner.
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
Thanks for the replies again..think i better have a word with IP, i know its 12 months away but I would rather know now than think we may be able to get the bits we need.
why we ever get our selves in this mess in the first place is beyond me now, still in 5 years time .....it will all be worth it[:)]
You may be able to keep some money back for essential expenditure if creditors agree. Otherwise you can ask for a payment break to pay for the essential bits you need. These missed payments are then tacked onto the end of the iva. xx
