They can't just re-open a closed IVA, assuming it was formally closed and you have your completion letter. I could be wrong, but would appreciate an experts comment on this.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
There are all shades of grey in this area. One point has been established - that mis-sold PPI refunds are an asset due to the iva at the time the iva is taken out. Because this is such a new area there doesn't seem to be consensus yet on how to deal with closed cases...arguably the iva shouldn't have been closed until the claim was introduced. Also, I think an IP can reopen an iva in their role as trustee. It is a shame that your hopes have been raised and dashed by being told different things - this seems one of those areas where it is at your IP's discretion.
I really don't understand this....surely the IP can't reopen an IVA after is it finished? I know for example, if there was a debtor that I had forgotten or left out of the IVA then I would still be liable for that debt. Surely it's either completed or not?
As for the PPI money, I'm pretty sure the only reason the IP is exercising 'discretion' is because they could make more money in fees out of this. They already had over £7000 from the F&F IVA.
What happens to all the others out there who have claimed mis-sold PPI, but failed to inform their IP and kept the money?
If anyone can shed any further light on this I would be grateful.
So is not a completion a completion then.
Will we never be free from our debts if this is the case, so if I win the lottery 3 years after receiving my certificate can the IP reopen my IVA to claim on it, becasue that is how I am reading this. The OP's IVA was completed in 2009 it is now 2012, surly they cannot do that. Would welcome some clarification from asn expert on this
If life is what you make it, I must have been in a strange mood when I made mine
MushyPea.
Unfortunately I have spoken with one of our IPs and he agrees with your IP. Effectively this is an asset which was there at the time the IVA was approved and is not a post IVA windfall.
BoL is also right in that the IP can reopen the case as Trustee in the same way many IVA cases are to be reopened to deal with the VAT issues. It may seem unfair and no doubt there are people who have gotten away with post IVA PPI claims but it is unlikely you would.
The only possible chink of light is if any such assets were specifically excluded when the IVA was closed down. You mentioned it was a full and final and if that is the case you could possibly argue that full and final means just that and nothing else, regardless what subsequently arises.
More greyness and ultimately it could be worth seeking independent legal advice.
Thanks for your reply Michael. While I understand the principle of what you are saying about the PPI claim, what I don't understand is how my IP can re open an IVA after it is closed.
Can this be done without my consent? The consequences for me of the IVA reopening are all negative, surely I'll be back to square one on my credit file, so why would I consent to that happening?
The refund of PPI payments is a consequence of mis-selling by Lloyds TSB, and the payments we made had a detrimnetal effect on our business which led in part to us having to go into an IVA in the first place.
The full and final settlement was signed off by all our creditors, so legally the debt is written off.
I doubt this asset was included in the IVA as the PPI mis-selling scandal had not come to light in 2008-9. What happens then in 5 years time if there is a ruling about bank charges for example, and we claimed back £5000 in refunds.....would they re-open the IVA again?
As other posters have pointed out....what hope is there that I will ever be able to get on with my life if there is a threat that the IVA could be reopened like this....surely it defeats the whole object of going into one and trying to deal with debt problems pro actively if this is what happens. After nearly 4 years I was starting to see some light at the end of the tunnel...
The reopening of the IVA does not mean that you would go back onto the register but basically would allow the IP to act as Trustee and distribute the funds on hand. I agree it seems unfair and accept your point about future reclaims and further reopenings but I suppose these only arise if and when you make a claim.
In my opinion, your best chance of success is the fact that creditors accepted a full and final settlement and as such should not be entitled to anything else. For example, if you had your full and final accepted and then won the lottery before the IP completed the closure paperwork, would the windfall be captured? I think you could justifiably argue no.
If the IVA had run for 60 months and then closed as normal I believe the reclaim would still be an asset of the creditors but when they agree to a full and final settlement I think they give up their rights to anything else. No doubt others have differing opinions but it is certainly worth running this past your IP.
I hope you get the funds MushyPea as the funds would mean a lot more to you than they would to your creditors.
I suppose that depends on whether or not they inform the agencies.
The other thing is the Insolvency Register - would your name go back on there?
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 again Michael, do you know if I need to give consent to re open the IVA then....obviously I wouldn't do that if it's such a grey area. This would need clearing up before I would even consider it.
You've given me some good information to be getting on with....the F&F is a good point....can't see how the IP can argue that final suddenly does not mean final!
I have put in a lot of work in this case and the thing that's upsetting me is having done all that and chased everyone up, the result is I am going to be penalised yet again. I wish i had just not bothered now
The IVA is not actually reopened and there is no mention on the IVA register and the credit reference agencies are not involved.The IP only acts as Trustee and the money distributed so any concerns about windfalls etc are unnecessary.
The IP could argue that the full and final did not exclude the PPI because no one was aware of it to but you could also argue that had you been aware you would have insisted any future claims are excluded. Have a chat to your IP and you may be able to resolve this amicably.
Well, that's one small bit of good news about the credit file then. I guess if the IP does the work there will be a fee involved, so my consent would be required for them to go ahead....what happens if I refuse to give it, and can they reopen the IVA without my consent?
My IP is taking legal advice...I will try and discuss this with them though. I should add, I asked them 4 months ago and they said they were not interested in the money or what happened to it as the IVA was completed.
I can only assume that they have changed their mind when they could see a financial advantage for themselves.
