Compensation

[Lisa Thomas]

Definitely worth trying then but keep the pressure on your IP for an answer asap - if it's not caught under the IVA then you have more chance of getting creditors to agree a variation.

[fireblade3516]

Thanks all will keep you all updated

[kallis3]

Good luck!!

[fireblade3516]

Thankyou

[Lisa Thomas]

Good luck

[fireblade3516]

Thankyou Lisa

[fireblade3516]

Hi All,

Thanks again for all the previous comments, I hope you'll all be as straight talking again after my development -

I was awarded £22,000 compensation which is currently sat in my bank account. I received it at the beginning of November and emailed my IP with all the relevant info on the 3rd November. I also requested a creditors meeting where I wanted to propose a F&F payment of £15,000, my remaining payments add up to just over £14,000 leaving me £7,000 to do what I class as essential works on my property relating to health & safety such as adequate extraction and the fitting of fire doors and frames etc to name just a couple. They told me they would need to seek legal advice on how to deal with the compensation and that a creditors meeting would take 39 days to arrange, I thought it was 28 but that took me to the 13th December so wasn't too bothered.
2 weeks later I received a letter from my IP asking when the legal case had started and why it hadn't been declared? I replied with the start date and said it was declared and that they just didn't follow it up. They still hadn't started to do the report for the creditors meeting.

Today I have received a letter asking for the whole amount to be transferred to them as in their words :-

"The property compensation you received following legal action is treated as an after acquired asset and the funds are due in to the IVA.
As you’ve requested, I’ve arranged a meeting of creditors so that your proposal to complete your IVA based on a lump sum payment of £15,000.00 can be discussed.
Once the funds are paid in to the IVA they’ll be kept on hold until the outcome of the meeting is known.
If your variation is successful you’ll be refunded £7,000.00"

I don't wish to appear arrogant, ungrateful or unreasonable but feel as though they have dragged their feet with the creditors meeting as still have no date yet and am very opposed to paying over the full amount.

Would it be worthwhile seeking my own independent legal advice?

If it is simply going to be held in their holding account why are they in such as rush to get it?

I could go on and on but appreciate its a lengthy post and I'm sure you all get the picture.

Thanks in advance for your comments

[lifenoteasy]

Without knowing who you IVA company is I will assume the worst and therefore think that you have answered your own question.

[fireblade3516]

Lifenoteasy

Are you saying not worth seeking my own advice?
I would have liked to think that even within an IVA there would be an element of discretion on a case by case status, but maybe not?
I have rotting skirting boards in my bathroom and ensuite as no window and no extraction, surely some of the funds could be used for such purpose?
Obviously if the F&F is agreed I will have the funds anyway but if not, who knows??

[lifenoteasy]

Hi

I'm suggesting that given the amount involved get some legal advice and pin down the IVA company.

Your house cannot be remortgaged or secured loan obtained if the work is not done so if the IVA takes all the money it is self defeating.

Additionally they messed up and are using this clause to cover themselves.

You will also want assurance that if you hand the money across that any interest earnt in the intervening period will come back to you.

[fireblade3516]

lifenoteasy

thankyou - very good points

[Michael Peoples]

Any legal advice should be paid for from the IVA pot and your IP should have done this. You should demand a copy of this advice and let the IP know that you want it checked by your own legal advisors. Your IP should also have called a variation by now under the terms and conditions so demanding the money from you now sounds an excuse for their delay.

[fireblade3516]

Michael thankyou

Would I be within my rights to put all your points and those of lifenoteasy in an email to my IP then?
I always feel as though I should be grateful they're dealing with it all for me and to just do as I'm told so to speak

[lifenoteasy]

Generally legal advice would be exempt under the data protection act and your ip may argue they cannot release this.

As it would be paid from the iva pot (what has been taken from your contributions) the argument would be that you have paid for the advice (as have the creditors) and therefore the are joint data controller with them.

The IP in this situation is lonely the processor.

They would have to demonstrate that they paid for the advice independently (out of their own pocket) to argue otherwise.

[lifenoteasy]

Ps I don't actually think they sought advice.